In this paper, we will address the three primary supplier risk management considerations facing procurement organizations today and propose a solution that lightens procurement's burden while strengthening key supplier relationships. The three primary considerations are:
The Problem:
Supplier risk management is a top corporate objective but identifying and continuously monitoring supplier risk on an enterprise-wide basis is a difficult challenge for most companies.
The Reality:
Managing suppliers in multiple countries as well as staying knowledgeable about the myriad of ever-changing global watch lists and compliance regulations is nearly impossible. Resources are limited, consistent standards are not applied, and consolidated reporting is difficult at best.
The Solution:
When partnering with a third-party to validate and monitor supplier risk, companies should ensure that the approach is founded on validated data and documents.