LONDON--(BUSINESS WIRE)--Managing the supply chain is an essential part of running a business. Supply chains carry a considerable amount of risk, particularly when they involve many companies across multiple regions. A recent study from procurement market intelligence firm SpendEdge, delved into supply chain risk factors surrounding the operations of a leading technology company, helping them optimize its sourcing destinations and suppliers.
What can supply chain risk assessment tell you?
Supply chain risk assessment identifies potential hurdles in a variety of areas, including legal and political climates, weather and other environmental issues, availability of materials, commodity volatility, and supplier performance. It also provides insight into the supply market, pricing, and procurement strategies. Being thoroughly informed and prepared for supply chain setbacks allows businesses to lessen the impact of such problems or avoid them entirely. Prepared companies suffer less of a revenue loss from supply disruptions than those that are unprepared.
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Supply chain challenges
The technology sector deals in very short product life cycles, with some now being measured in months. If a company cannot keep up with its competitors’ products, it risks significant market share and revenue losses. It is therefore essential to have an agile supply chain that can meet your needs as quickly as possible. In addition, having backup plans and redundancies is invaluable: if one supplier fails, any delay in replacing it will be costly.
There is also constant pressure to reduce costs and make products more affordable. Finding the right suppliers at the right prices is important, as is being aware of potential price fluctuations or commodity shortages. Other costs may arise from changes in regulations, such as certification costs or the need to change packaging or eliminate a material from a product.
With so many different factors to keep track of, a thorough risk assessment can mean the difference between success and failure. SpendEdge’s team of procurement analysts have experience conducting risk assessments for a wide array of clients. Their latest study helped the client, a multinational technology company, understand defects and shortcomings associated with the equipment and materials provided by specific suppliers. By deploying stringent quality surveillance processes and procedures to help the organization understand shortcomings and risks in their supply chain, SpendEdge was able to help the client identify optimum sourcing destinations and world class suppliers in only five weeks.
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SpendEdge shares your passion for driving sourcing and procurement excellence. We are a preferred market intelligence partner for Fortune 500 firms and other leading companies across industries. Our strength lies in delivering actionable insights that help sourcing and procurement professionals get the right information in the right format, without any unnecessary frills.
Our procurement market intelligence coverage extends across critical processes of sourcing strategy planning process and helps clients achieve more than mere monetary savings. Our procurement insights are well-defined to meet the information needs of the procurement organizations and are aimed at helping category managers extract hidden values out of sourcing teams, suppliers, contracts, and processes.