Supply Chain Risk Analytics

Context and Scope:

Our client wanted to conduct a strategic risk assessment of its supply base within key defined categories, so as to better understand the supplier’s key supply lines, the strength of its customer pipeline, its own consequent financial strength and thus the potential impact on the client’s value chain.

TSC Approach:

TSC conducted a comprehensive, in-depth analysis of the sustainability of the defined suppliers (both business and financial). The sustainability assessment was analyzed and scored on the basis of a wide range of factors, both business, operational and financial – designed by both The Smart Cube and also in conjunction with the client. These individual factors contributed to the final sustainability scores achieved by the suppliers. In parallel, a financial performance analysis of the suppliers’ key customers was also provided to help client estimate the future revenue streams for the supplier.

Deliverable:

The deliverable was a precise report detailing the specific risks associated with the supplier based on a host of critical parameters including financial stability and business sustainability. The client was then able to gain a more fundamental understanding of the suppliers’ specific positions, thereby allowing the client to better position itself in order to best protect its own value chain operations and, by extension, its customer commitments.