Executive Briefings

Supplier Risk and Compliance: Increasingly Important but Under-Recognized

Most companies today are heavily outsourced and have suppliers spread out across the globe. Yet firms' knowledge of their suppliers and the environments they operate in is often limited and out-of-date, crippling their ability to successfully manage the dynamics of their supply base. This has introduced substantially more risk in global businesses.

The enormous challenges and vital importance of managing supplier risk and compliance have been made even more evident by the global financial crisis and recent natural disasters, as well as lean business practices.

Managing supplier risk and compliance is very important, but unfortunately that importance is often under-recognized. When a marketing executive or engineer does a great job, everyone sees the increase in sales or a great new hit product launched with a big bang . . . and with those successes, the bonuses and praise flow. When a supplier risk and compliance manager does a great job, then what happens is . . .  nothing goes wrong. Everything goes smoothly. And most of the time, nobody notices. Of course if they mess up, all hell breaks loose.

It is not so surprising then that our research found that most companies under-invest in managing supplier risk.

Read Full Article


Keywords: Supply Chain Security & Risk Mgmt, Quality & Metrics, Supply Chain Analysis & Consulting, Global Supply Chain Management, ChainLink Research, Sourcing and Procurement, Supplier Relationship, Risk Strategies

The enormous challenges and vital importance of managing supplier risk and compliance have been made even more evident by the global financial crisis and recent natural disasters, as well as lean business practices.

Managing supplier risk and compliance is very important, but unfortunately that importance is often under-recognized. When a marketing executive or engineer does a great job, everyone sees the increase in sales or a great new hit product launched with a big bang . . . and with those successes, the bonuses and praise flow. When a supplier risk and compliance manager does a great job, then what happens is . . .  nothing goes wrong. Everything goes smoothly. And most of the time, nobody notices. Of course if they mess up, all hell breaks loose.

It is not so surprising then that our research found that most companies under-invest in managing supplier risk.

Read Full Article


Keywords: Supply Chain Security & Risk Mgmt, Quality & Metrics, Supply Chain Analysis & Consulting, Global Supply Chain Management, ChainLink Research, Sourcing and Procurement, Supplier Relationship, Risk Strategies