The Positive Aspects of Hiring Supply Chain Risk Management Providers

Every organization relies on a set of critical suppliers, and if any of these suppliers are at a financial, market related or sustainability related risk, it can put the entire supply chain at risk. Most of the times, risks come from tier two, and tier three suppliers. Hence, it is important for organizations to maintain visibility into all aspects of their supply chain to determine key risk and performance indicators that must be monitored to prevent unwanted surprises. Hiring supply chain risk management providers can make it easier for small and medium-sized procurement organizations to have a systematic approach in addressing all the possible risks in the supply chain. Here are some of the positive aspects of hiring reputable and experienced supply chain risk management specialists:

• Identify and map interdependencies in the extended supply chain – Organizations can leave the repetitive tasks such as data collection to supply chain risk management providers. These experts can collect data on critical suppliers on the organization's n-tier supply chains and analyze the information to find interdependencies in those areas. Doing so enhances your visibility into your supply chain.

• Monitor risk indicators and spot early warning signs – Supply chain risk management specialists use a unique framework in category intelligence to oversee the risk indicators associated with every procurement category. Likewise, they will keep you updated through news alerts, reports, and newsletters.

• Map potential risks – Research will be conducted on countries and markets that have a considerable impact on each procurement category's extended supply chain. This way, the supply chain risk management provider can identify and monitor every risk indicator.

• All possible risks are considered – Seasoned supply chain risk management providers do not merely focus on market-related risks like the entry of new players, technological disruptions, trends in supply and demand, consolidation, and regulatory risks. They take a look at macroeconomic factors, sustainability risks, operational risks, and geopolitical risks, too. That way, you gain full visibility and be able to oversee all activities in your supply chain.

How Procurement Consulting Firms Can Help Enhance Business Proficiency

Any business that deals with procurement can become more efficient with the help from an expert. In fact, a small or medium-sized business can further boost its proficiency when it is guided by a procurement consulting firm. This applies to a business that wants highly actionable intelligence about its procurement categories, suppliers, and supply chains. Procurement consulting firms can provide actionable, comprehensive, and critical information at any stage of the procurement life cycle. However, you need to make sure that you are hiring an experienced and seasoned procurement consulting firm. That way, your business can count on a team of seasoned research analysts and consultants who can come up with actionable insights and intelligence.

Category managers, chief procurement officers, and other relevant stakeholders can work more efficiently with the expertise of experienced procurement consultants and analysts. A procurement consulting firm will have access to thousands of online information sources and possibly more than a million suppliers around the world. That way, procurement analysts, and consultants can produce reliable and actionable intelligence and insights for your business. Consultants can provide procurement intelligence solutions that can help you and your stakeholders determine, measure, and benchmark the performance of existing suppliers, detect the signs of supply chain risk, and monitor the changes in your procurement categories.

Hiring a procurement consulting firm can help ensure a sustainable supply chain. The expertise of procurement analysts and consultants will make it easier for your business to improve and strengthen its relationship with suppliers, discover new or niche suppliers, and discover levers that could lead to cost savings and better negotiations. You can rely on these experts to help you meet the compliance requirements that are related to monitoring suppliers, too. This way, with a procurement consulting firm, you are not merely getting a sourcing intelligence solution, but a reliable partner that can ensure sustainable procurement.