Jun 20, 2019   SOURCE: BusinessWire

Supplier Risk Analysis: Improving Supplier Segmentation and Reducing Overhead Audit Costs for Companies | SpendEdge

SpendEdge, a leading provider of procurement market intelligence solutions, has announced the completion of their supplier risk analysis engagement for an industrial machinery manufacturer.

This press release features multimedia. View the full release here: https://www.businesswire.com/news/home/20190620005449/en/

Supplier risk analysis engagement for an industrial machinery manufacturer. (Graphic: Business Wire)

Supplier risk analysis engagement for an industrial machinery manufacturer. (Graphic: Business Wire)

Project background

The company wanted to address distribution disruptions and supplier concerns occurring due to poor supplier risk management. The key objectives they aimed to achieve through this engagement are mentioned below.

  • Objective 1: The company wanted to minimize rising overhead audit costs by adopting effective supplier risks analysis methods.
  • Objective 2: They also wanted to identify suppliers who were exposing themselves to different types of risks.
  • Want to gain detailed insights? Request a free demo and know how we can help you to analyze risks posed by suppliers and improve supplier risk management.

“Adopting a step-by-step approach is crucial for companies to improve the supplier risk analysis process. It involves identifying critical suppliers, analyzing supplier risks, collecting supplier data, and implementing risk analysis techniques,” says a procurement expert from SpendEdge.

Key findings and solutions offered

In partnership with SpendEdge, the client – a leading industrial machinery manufacturer – consolidated supplier data across the organization and obtained real-time information on suppliers. The solution offered helped them to:

  • Assign risk categories based on supplier segmentation and identify suppliers likely to disrupt the supply chain.
  • Associate with suppliers who were already vetted and approved during disruptions.
  • Wondering how supplier risk analysis helps companies to minimize the possibility of financial losses occurring during supply disruptions? Request a free proposal and access our complete portfolio of supplier risk management solutions.

Outcome: The supplier risk analysis methods suggested by the experts at the SpendEdge helped the industrial machinery manufacturer to analyze suppliers' risk profile and segment them. This helped them to predict supplier risks and devise effective contingency plans to scale up operations during disruptions. The improved supplier risk management process further helped the client to gain better visibility into supplier capabilities, maturity, and risks levels. In addition, the solution provided reduced the number of audits performed, thus minimizing overhead audit costs.

To access the complete case study on how we helped an industrial machinery manufacturer to improve supplier segmentation and enable supplier rationalization, get in touch with our experts here!

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