We worked with an industrial machinery manufacturer to design and build a risk management solution for its global supply chain .
ChallengeThe company has approximately 10,000 suppliers in over 50 countries worldwide, and although they had an audit and SAQ programme in place for some suppliers, these were selected purely on the basis of spend. The client was looking for a more robust risk-based system.
SolutionA selection of indices from our wider portfolio was chosen, enabling us to produce customised country risk scores mirroring the clients Supplier Code of Conduct. This was then combined with the company’s own internal data (spend, criticality, etc.) in order to segment suppliers according to their risk exposure.
OutcomeThe client was able to give each supplier a risk exposure ranking and view a bespoke scorecard that clearly showed which risk issues were driving the scores. Based on this, the client was able to focus on actively managing its 300 riskiest suppliers, reducing the number of self-assessments / audits required whilst being able to report that they were using a robust, evidence-based risk assessment process.