It’s time to really see your supply chain.
Leveraging market intelligence to better manage supply-chain risk
Supply chains have become more complex and global in scope. The patchwork of regulatory and reporting requirements–coupled with increased outsourcing, subcontracting, rising security threats, safety requirements, financial vulnerabilities and natural disasters–has made it more difficult than ever to fully assess supplier risk.
Research has shown that the potential impact of supply-chain disruptions can be serious and measureable, including reduction in share price by as much as 7% and significant material effects on company value.
Suppliers that are further removed from the company’s immediate primary suppliers pose a major supply-chain risk; almost 40% of reported supply-chain disruptions originate with “Tier 2” and “Tier 3” suppliers.
Traditional sources of information used to monitor supply-chain risks such as financial scores, background reports and the occasional Google™ searches are no longer sufficient on their own because they are unable to uncover potential supplier business issues in near “real time.”
The good news is that emerging business information tools are now available.