Reducing risks in the supply chain

Reducing risks in the supply chain

In theory, reducing risks in the supply chain is essential for the success of any company. The supplier management, procurement and logistics teams should plan efficiently and productively to achieve your commercial goals. However, in practice, we face a lot of potential risks.

It is important to analyze and identify these risks to evaluate the best practices to eradicate them.

Which are the main risks in a supply chain?

Economic and financial risks

Hiring a supplier that is not financially stable or that has a lot of debt can result in a dangerous failure to comply with a commitment and may compromise the whole supply chain.

Political risks

The local macroeconomic and geopolitical situation of a company can interfere in its production and affect a supply chain.

Risks in planning

Planning for hiring a supplier and elaborating a solid contract are crucial stages to form a successful relationship. Otherwise, your operations might be affected.

Risks related to quality

It is necessary to demand and analyze international quality certifications because they guarantee the correct production and operation of the supply chain.

Legal risks

All over the market, many companies deal with legal problems. Getting involved in relations with these companies is a big risk for your production and also for your company’s reputation.

How to mitigate these risks in your company?

There are different practices you can implement to protect your business:

Use of data for event prediction

The use of data enables you learn the real financial health of a company, analyze the suppliers to identify risks, identify other companies’ trends or forecasts, etc.

A plan for risk mitigation

After a methodologic evaluation, you can decide the margin of risk you want to act on and which companies you should look into and keep track on.

Training your team

It is necessary to guarantee that all your teams are trained for risk identification. Teach and train your team or hire a specialized company to do so.

Keeping focus on the quality of the production process

It is important to identify if a supplier has a structured audit and quality control process, and if that company has a satisfaction ethic that aligns with your company’s.

A strategic supplier portfolio

Identify all the suppliers that have a bigger or lesser influence on your business. From raw materials suppliers to transporters, investigate every entity involved to mitigate risks.

We recommend you to have an efficient process of supplier integration that shows you very clearly which are the levels of risk your company is exposed to. That way you can study, plan and use relevant and updated information to mitigate said risks and build solid relationships with good suppliers.

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Cial D&BReducing risks in the supply chain
3 good reasons to automate your supply chain management

3 good reasons to automate your supply chain management

It is time for your company to analyze which suppliers it should keep working with. How do you do this analysis? Where do you get your information from? Do you have a broom closet full of dozens of files with monthly reports on each one of your suppliers?

What if, for any reason, you don’t have access to those files? Either you lost that information, or perhaps someone lost a document, or it got shredded by mistake. This could hurt your business.

Many companies still manage their supply chains manually: a lengthy, confusing and messy process that means spending a lot of time and resources gathering information. Supply Chain Managers deal with hundreds of scattered files, which leads to jumbled and outdated information.

Leveraging technological and digital tools to manage your supply chain can turn this situation around.  If you have updated and organized well your information, you will gain a comprehensive perspective on all your suppliers. This will enable you to reach better strategic decisions for your company.

3 good reasons for a company to look for a comprehensive solution that helps them manage their supply chain:

Reduce tasks and gain efficiency

A digital platform enables you to reduce onboarding and data standardization time spam. It also gathers all the information you need on each one of your suppliers to evaluate them constantly.

Manage and control information in one place

Gathering information in one safe web-based place allows you to manage it in real time, keep it organized, homologated and accessible. It prevents important data from being lost or omitted.

Assess suppliers’ data for smarter decisions

Gathering key information on your suppliers can help you assess if working with a company can hurt your supply chain, and to identify which suppliers are better suited to work with you.

Investing in a tool that helps you have a comprehensive management of your supply chain means establishing better business relationships and maintaining a healthy supply chain.

If one of your goals for this year is making better and faster decisions while reducing risks at the same time, we have the perfect solution: Supplier 360.

Visit cialdnb.com and learn more about Supplier 360.

 

Cial D&B3 good reasons to automate your supply chain management
The Perks of Analyzing your Business Partners

The Perks of Analyzing your Business Partners

Do you know what is the key element for an organization to make wise decisions?

In every sector and industry, precise information and insights on companies have become essential assets for major decision making. This data can include how many years a company has been on the market, or a description of its operations, as well as its commercial background and financial health. All these aspects reveal a clear business status and an accurate scenario of how a business relationship with a company could work.

You must always rely on detailed studies and investigations that provide the information necessary to decide which clients, partners and suppliers are a good fit for your company. After an analysis of a company’s finances, legal status and operations, it is more likely to establish strong commercial relationships: if a company has a deep understanding of who they are working with, it can prevent risks and find growth opportunities.

Who can use this information?

The areas dedicated to risk evaluation can make the most of having an accurate picture of a potential business partner. The procurement sector, for example, makes the final choice on which suppliers to work with after evaluating if prospects can meet deadlines and provide the required service. The legal sector will determine if it is advisable to partner with another company based on its legal record. The operational sector can evaluate if there are quality processes or standards that guarantee the feasibility of working alongside other companies.

Once you have precise insights on your potential allies, you will have more tools to decide what kind of commercial relationship you want with a partner. These decisions involve much more than trust or the mutual interests that two or more companies can have; they depend on valuable data and clear arguments.

The benefits of knowing a company’s record

You can benefit from a Business Information Report in several ways:

  1. Evaluating risks in commercial relationships
  2. Backing-up strategic decisions
  3. Enabling easy access to international businesses
  4. Understanding the activities of a target company
  5. Boosting the growth and profitability of the business

Business intelligence can give you successful results. However, it is important that the data analyzed is updated and follows high-quality standards. CIAL Dun & Bradstreet is one of the world’s most reliable sources, as it has a database with verified and updated information on thousands of companies all over the globe. This allows us to offer detailed reports to boost commercial relationships.

We have very useful information for your company. Visit our website and learn more.

 

Cial D&BThe Perks of Analyzing your Business Partners