According to the “Rules of Golf,” a hazard can be only one of two things, water or a bunker. In the world of supplier management, particularly when dealing with a global business, there are potentially dozens of hazards ranging from currency risk and conflict minerals to transportation strikes and supplier financial strength. Managing and monitoring these risks is highly complex and requires significant business intelligence to get sourcing professionals the right information at the right time to evaluate future and existing suppliers, identify potential areas of risk, and develop mitigation plans for critical/key suppliers and the materials they provide.
Supplier dashboards are the current cliché term to identify the performance of suppliers and how they support your business relative your objectives. Typically, these dashboards focus on operational metrics, e.g., quality, on-time delivery, and cost reductions. However, we increasingly see (and are leading the way in this area) the need to incorporate risk metrics into these dashboards. These metrics go well beyond the somewhat standard view of D&B credit ratings, which change infrequently. Focus is on social, operational, management, and political changes that can impact these suppliers – and many others. Ask an expert at Xeeva to learn more about our views on supplier risk management.