Mitigating risk in complex, multi-tier supply chains is undoubtedly a huge challenge facing businesses around the world.
Whether it be technical and compliance based, or environmental and social related risk, organisations are encountering increasing pressure from all regulatory, consumer and government angles, and are subsequently seeking increased visibility of all supply chain actors to ensure adequate risk management.
In this article, we will explore the difficulties many businesses experience when it comes to supply chain risk mitigation, and outline how supply chain software, such as Authenticate, can optimise risk management processes.
Recent research revealed in CIPS Supply Management highlights the reality of current risk management processes for the majority of organisations.
With sourcing/procurement professionals spending 73% of their time on due diligence and recertification efforts, and only 27% focusing on ongoing risk monitoring, businesses clearly need more support to make the transition from manual, reactive ways of working to implementing automated technology, delivering actionable risk insight. Especially as risk reduction was the second biggest benefit cited by companies adopting cloud technology in the McKinsey IT Survey.
Supply chain risk can take many forms and has different consequences for businesses and consumers. Internal functions must be aware of risks most likely to impact performance, damage reputation or cause harm to people, animals and environments in their supply chain to mitigate them before they occur.
Common risks in complex supply chains comprise of:
Tackling the risks most pertinent to your company operations can be extremely challenging without full supply chain transparency. Built with different business functions in mind ranging from technical and procurement, to sustainability and ethics, supply chain software such as Authenticate in the first instance provides direct and indirect supplier visibility all the way back to source.
Once supply chain mapping has been completed, other digital solutions (where relevant for your organisation) provide the tools needed to securely gather, analyse and act on supplier data to proactively mitigate risk.
Our range of scalable modules cover:
Ready to optimise your risk management processes through digital supply chain transformation? Get in touch with the Authenticate team.