One answer to more effectively manage supplier risks is to segment the work into strategic vs. tactical risk management tasks, regardless of which tier the supplier falls in.

Tactical tasks can consume a tremendous portion of time for internal experts (e.g. procurement, commodity manager, safety, risk manager, compliance, quality, etc). By segmenting tasks, internal experts can focus most of their time and efforts on strategic tasks, while tactical and routine tasks are delegated to a third party who (if it is the right service provider) can perform these services much more cost-effectively.

Ideally this segmentation of tasks is implemented by a platform with a rules engine that can be configured using rules created by the company's end-user experts.

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Keywords: sourcing solutions, supply chain, supply chain management, supply chain risk management, supplier base, supplier analytics