Executive Briefings

Linking Risk Management, Procurement Yields 'Optimal' Results, Study Says

Procurement organizations struggle with resiliency due to a lack of bandwidth and sufficient budgets, according to "Is Your Luck Running Out? Managing Supply Risk in Uncertain Times," a report from A.T. Kearney and Rapid Ratings International.

Linking Risk Management, Procurement Yields 'Optimal' Results, Study Says

Disruptions are inevitable, and organizations that can quickly identify, diagnose, and resolve these issues are best positioned to proactively manage their supply chain risk, the survey concludes. Companies that invest in risk management practices that link procurement, category and supplier management strategies produce optimal results.

“For most organizations, it is not a matter of if but when a supply disruption will occur,” says Carrie Ericson, vice president with A.T. Kearney Procurement and Analytic Solutions, and co-author of the study. “Although most acknowledge this fact, few have invested in the systems and programs needed to respond.”

The report includes a summary of 12 macro trends that will play a major role in the current and future operating environment for businesses and especially for global supply chains. These global trends were developed by the A.T. Kearney Global Business Policy Council.

The report demonstrates how the Rapid Ratings proprietary FHR (Financial Health Rating) can be effectively used to analyze the health of public and private companies globally, with comparison across industries and regions. It is the first time a study such as this has been published showing how combining the macro mega-trends analysis with a micro bottom-up company and industry analysis provides procurement executives with relevant industry insights to make informed risk management decisions.

Source: A.T. Kearney

Disruptions are inevitable, and organizations that can quickly identify, diagnose, and resolve these issues are best positioned to proactively manage their supply chain risk, the survey concludes. Companies that invest in risk management practices that link procurement, category and supplier management strategies produce optimal results.

“For most organizations, it is not a matter of if but when a supply disruption will occur,” says Carrie Ericson, vice president with A.T. Kearney Procurement and Analytic Solutions, and co-author of the study. “Although most acknowledge this fact, few have invested in the systems and programs needed to respond.”

The report includes a summary of 12 macro trends that will play a major role in the current and future operating environment for businesses and especially for global supply chains. These global trends were developed by the A.T. Kearney Global Business Policy Council.

The report demonstrates how the Rapid Ratings proprietary FHR (Financial Health Rating) can be effectively used to analyze the health of public and private companies globally, with comparison across industries and regions. It is the first time a study such as this has been published showing how combining the macro mega-trends analysis with a micro bottom-up company and industry analysis provides procurement executives with relevant industry insights to make informed risk management decisions.

Source: A.T. Kearney

Linking Risk Management, Procurement Yields 'Optimal' Results, Study Says