LONDON--(BUSINESS WIRE)--Supplier risk assessment is an essential practice to identify potential risk factors and threats before committing to a supplier in any industry. This is especially true for the healthcare industry, which has greater risk factors and responsibilities to their customers. A recent study from SpendEdge, a leading procurement market intelligence firm, explores the unique responsibilities healthcare organizations have when selecting suppliers for medical devices and services.
In this supplier risk assessment, SpendEdge worked with one of the world’s leading medical and pharmaceutical device companies who have offices and facilities in more than 50 countries. The focal point of this project was to conduct a periodic deep dive risk assessment specific to a targeted set of suppliers which were chosen by the client.
What is supplier risk assessment?
Supplier risk assessment helps businesses to identify weaknesses, threats, and other risks associated with potential suppliers in order to increase supply chain efficiency, operational efficiency, and overall safety and success. Supplier risk assessment allows businesses to develop robust supplier strategies, and to assess and control any threats to their operations, capital, and profits.
Healthcare industry faces increased threats
Supplier risk assessment is especially important for the healthcare industry because of the added responsibility that healthcare institutions have. They aren’t just responsible for the success of their business and employees; they are also accountable for the health and lives of their patients and customers under their care.
Healthcare organizations are liable for risks associated with their own practices, services, and employees, and must also ensure that the products and services they receive from third-party vendors meet regulations and that they are covered under federal and state/provincial healthcare programs and initiatives. Failure to do so can result in heavy fines or even criminal charges.
Supplier risk assessment can be complex for healthcare organizations because of the numerous products, devices, and services organizations need to procure and the many different suppliers available on the market, as well as varying regulatory standards and laws in different regions across the world. Finding affordable products is important, but ultimately should come second to the safety, reliability, and overall reputation of a supplier.
Procurement Insights for the Healthcare Industry
The recently completed supplier risk assessment from SpendEdge provides detailed insights into the supply market, pricing, and procurement strategies specific to the healthcare industry. The client was seeking expertise for developing a robust supplier strategy, and in order to do so, turned to SpendEdge to provide information about targeted suppliers, including details about the parent and subsidiary companies, key executives, product portfolio, and financial announcements.
After only four weeks, the client gained actionable insights which allowed them to engage and negotiate better with suppliers, gain a clear visibility of the risks associated with suppliers, and identify potential market opportunities.
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