LONDON--(BUSINESS WIRE)--Recent years have seen supply chains become increasingly complex, having the power to disrupt the market or the organization itself. Therefore, organizations are trying to create a sustainable competitive advantage and increase their share of profit. This can be achieved through building a robust supply chain framework by involving supplier risk management (SRM) and enterprise risk management (ERM) to protect their supply network from uncertainties.
Procurement market intelligence firm SpendEdge examines the advantages and challenges of supplier risk management in its blog Supply Chain 101 – Why Supplier Risk Management is Essential for Your Success?
In the blog, SpendEdge observes that “SRM helps in forecasting the adversities that may crop up in future and affect the supply chain. The forecast will make the organizations to anticipate, identify, track and mitigate the root cause of the adversity. Also, it will help the organization to understand the important aspects of the complex supply chain and distribution networks.”
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There is a growing need for organizations to understand the hidden challenges and then set up an integrated risk management program. This program should comprise of some of the best industry practices such as certifying suppliers, monitoring the supply chain and supplier performance, analyzing the information and reducing risks.
Organizations must maintain a 360-degree view of their entire supply chain, which will involve active suppliers, downward suppliers and distributors. Suppliers having the most impact on the organization’s supply chain are needed to be identified by the CROs, and then categorized according to their importance in the business.
More information on the latest procurement trends in the supply chain industry and how leading organizations are benefitting by using supply chain risk assessment can be found using resources from SpendEdge. These resources are compiled from SpendEdge’s team of 500+ procurement solutions experts.
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