All organizations in some form or another interact with suppliers. These interactions, just by their very nature, have risks involved. That is to say, the level of control over a process, product, or service is reduced when outside of the organization – with suppliers. This is the foundation of supplier risk.
In today's rapidly expanding markets, the reliance on suppliers, both domestic and international, is growing; this increases the risk to an organization. In addition, engaging with suppliers in new regions, new ventures, or new technologies introduces new risks that had not been encountered before. This is not to say that engaging with suppliers should not be done or should be limited; rather, with planning and data analysis, supplier interactions can be beneficial partnerships.
There are strategies and tools that can aid an organization in identifying, mitigating, and managing supplier risks.The objective in managing supplier risk is reduce, if not eliminate, the impact to the organization from supplied processes, products, and services. This effort is not intended to be the responsibility of a single function. Supplier risk management is a cross functional responsibility as more than one function can be impacted by a supplier.
Every organization manages risk in some way, shape, or form. Some organizations have formal processes and procedures to identify, mitigate, and manage risk.
Often times risk management processes are focused internally; potentially losing sight of the external risks from suppliers. As the global markets expand, so too does the supply chain; this leads to an increase in risk to an organization.
Managing the risk from suppliers can be a dauting process; but it doesn't need to be. Approaching Supplier Risk Management is similar to internal risk management; it's a cross-functional approach.There are tools and techniques to identify, mitigate, and manage supplier risks as part of a risk management system that can benefit an organization of any size.
This webinar will explore strategies, tools, and techniques to take some of the guesswork out of managing supplier risks from the overall supplier management perspective to analyzing the risk of an individual supplier.