Supplier Risk Intelligence at a glance:
For businesses with a large supplier base and complex supply chains, managing third-party supplier risk is a major challenge. 61% of CPOs feel procurement risks are increasing, 59% say they are unprepared to address them (Deloitte Global CPO Survey 2019 and The Hackett Group Survey 2019).
Business continuity and lead to stalled supply of key products and services, manufacturing delays and production shutdowns.
Quality and compliance when suppliers fail to meet your required standards – leading to compliance breaches and reputational damage.
Price competitiveness by driving costs of key commodities up and eroding profit margins right across your product portfolio.
Savings opportunities if favourable developments are missed and not capitalised upon.
Supplier Risk Intelligence from The Smart Cube is an end-to-end risk monitoring and management solution that leverages AI+HI to alert procurement teams to supplier risks before they impact the business – and help them take the right actions at the right time. With Supplier Risk Intelligence from The Smart Cube, you get:
We leverage advanced analytics and machine learning models to provide near-real-time monitoring of leading risk indicators across your supply base, and advance warning on risks before they materialise.
Triggered by high risk scores, predefined risk events, or geopolitical, macroeconomic and industry factors.
Proactively mitigate risks with intelligence to support alternative supplier/sourcing hub identification, accelerated sourcing, contract negotiation, supplier collaboration and more.
Our specialist team provides recommendations to help your procurement team respond quickly and effectively to risk indicators in the right way.
Tailored insights to inform executive and supplier governance and program reviews.
With Supplier Risk Intelligence from The Smart Cube, you can:
However complex your supplier portfolio, we have the specialist skills, data, proprietary assets and technology to help you design and implement a tailored Supplier Risk Intelligence solution that makes identifying and mitigating risk factors simple. Here’s how our process works:
Through diagnostic and discovery workshops, we review the way you manage supplier risk today, identifying gaps and opportunities for improvement.
We design a custom risk intelligence solution for each supplier segment, incorporating all relevant data and intelligence sources.
We deploy a combination of near real-time risk monitoring and periodic or need-based deep dive assessments by our specialist team.
We help you understand the potential business impact of risks identified and provide intelligence to support your mitigation plans.
We conduct ongoing reviews to refine the program to address changing supplier risk dynamics.
When you choose Supplier Risk Intelligence from The Smart Cube, you always get:
An end-to-end solution: We provide support at every stage of the insight value chain, from data integration to convenient insight and recommendation delivery through intuitive platforms.
Specialist domain knowledge and analytics expertise: We combine advanced analytics with deep category knowledge, and leverage both internal and external data sources, to deliver the right intelligence at the right time.
A solution built around you: We design our solution around your organisation’s needs, risk management goals, and compliance and sustainability objectives.
Near-real-time risk monitoring and alerts: We enable your team to respond to risks at incredible speeds with automated alerts and near-real-time insight into emerging risk indicators across your supply base.
A global F&B company was concerned about potential supply chain risks due to tariff and trade tensions between the US and China, and wanted to monitor ongoing risks associated with its key suppliers (of ingredients, logistics and packaging categories) and major sourcing hubs.
The Smart Cube deployed a proprietary risk monitoring portal within a week to monitor strategic, operational, financial, compliance and country risks for key suppliers in near real time. The category manager was automatically alerted via email regarding the risk events (as a part of the early warning feature of our portal).
With early warning of potential risks, the client was able to engage the key suppliers and made changes to its supply chain to reduce its risk exposure.
The client wanted to improve its understanding of business and operational risks associated with its suppliers in CRO, R&D and APIs in order to to devise better risk mitigation strategies.
The Smart Cube conducted detailed financial health assessments and supplier risk assessments for 200 critical suppliers. We monitored suppliers through periodic risk monitoring reports for the top 30 suppliers and the other 170 suppliers on quarterly and half yearly basis, respectively.
The periodic monitoring helped the client proactively monitor performance and mitigate risks of critical suppliers worth $220 million for the 3 categories effectively.
The client’s supplier relationship team wanted to assess capabilities, performance, operational risks and customer dependence of key direct strategic suppliers to better manage relationships and develop stronger partnerships.
We completed an exhaustive assessment covering revenues by programmes, revenue dependence on customers (including peers), products supplied to peers, investments focus, quality and other issues, sourcing from low-cost countries, and technological investments for the suppliers (including China-based suppliers where the team did not have any visibility). The insights were used to suggest change in bargaining power, strategic direction and risks.
In-depth assessment of critical suppliers helped the client gain extensive visibility on critical suppliers representing 20% of its total spend and improve partnerships for future programmes.