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.