Organizations have historically focused supply chain investments around a “just-in-time” philosophy. But in today’s global marketplace, with increasingly complex supply networks and risks that need to be mitigated and managed, organizations that develop both resilience and agility are best suited for success. Deloitte’s Supplier Risk Management solutions can help organizations gain better supply chain visibility and effectively counter disruptions.
For procurement leaders, the pursuit of cost savings is often thwarted by supplier risks that can proliferate along the way. Between global public health crises, economic uncertainty, geopolitical conflicts, and natural disasters, supply chain disruptions have a real impact on the bottom line. To minimize losses, supply chain leaders must take steps to build capabilities that can help their organizations anticipate, sense, and respond to unexpected changes. To maximize gains, they must build connected, digital supply networks that can evolve alongside shifting business priorities.
But many organizations have a long way to go when it comes to proactively managing supplier risk. In our 2021 Chief Procurement Officer (CPO) Survey, enhancing risk management was only the sixth highest priority for responding CPOs—a measure that’s barely changed since 2019. On top of that, the reported supply chain challenges from 2020 were substantial:
Many organizations desire multitier supply chain visibility, but face challenges in achieving true transparency into their immediate first-tier suppliers. They often struggle to answer questions such as these:
The key to gaining a more comprehensive view of supplier risks relies on interconnected digital tools, physical infrastructure, and corresponding data streams. Trustworthy data can help provide better supply chain visibility and help leaders identify risk exposure. With this foresight, organizations can proactively respond to emerging threats in an effective, cost-friendly manner.
Deloitte’s Supplier Risk Management solutions can help your organization build more trustworthy supply chain data and establish the full picture of your potential supply chain risks. Through a combination of our technological assets and a deep understanding of both supply chains and industry trends, we can help model supplier networks, sense risks in real time, and take prescriptive actions based on simulated outcomes. Successfully managing risks across modern supply chains requires organizations to:
Our approach includes:
Leveraging leading-edge technology to enhance efficiency, effectiveness, and speed throughout the architecture, we help you chart a proven path forward. Our supply chain risk management maturity models enable you to reach best-in-class architecture that permits supply chain visibility and agile risk management.
We know how to quickly take you to a state where risk is actively managed, opportunities are seized, and supply is assured. Reach out today to discuss your vision for building more resilient, agile supply networks.
1 Jorgen Heizenberg, Twiggy Lo, Gareth Herschel, Divya Radhakrishnan and Shubhangi Vashisth, “Magic Quadrant for Data and Analytics Service Providers,” Gartner, February 15, 2020.
2 Jennifer Belissent, “Forrester Wave™: Enterprise Insights Service Providers Q2 2020,” Forrester Research, June 8, 2020.
3 ALM Intelligence, “Procurement Operations Consulting 2020”; ALM Intelligence estimates © 2020 ALM Media Properties, LLC. Reproduced under license.
4 Jennifer Hamel, “Worldwide Business Analytics Consulting and Systems Integration Services 2020 Vendor Assessment,” IDC MarketScape, June 2020.
5 ALM Intelligence: “Cybersecurity Consulting 2019”; ALM Intelligence estimates © 2019 ALM Media Properties, LLC. Reproduced under license.