When the supply market is inexpertly researched and managed the business consequences can be extreme.
Within the past decade there have been nuclear explosions, oil storage explosions, IT system failures, shipping strikes, supplier mergers and many other situations, each presenting risk. The vagaries of supply markets need constant research and vigilance by procurement that are accountable for managing supply chain risks.
The risks will be exacerbated when a dependency on an international supply market forms the procurement strategy, as with retailers. This data set of Procurisk® will probe the extent to which your organisation has supply market risks.
This data set will facilitate a structured review of the Supply Market risks and assist in the formulation of revised strategies. The business benefits include the avoidance of operational disruption derived from failures in the supply chain.
Many organisations have encountered the consequences of seeking instant solutions when suppliers and contractors have failed to deliver goods and services in a timely and cost effective manner. The organisation then incurs costs that cannot be passed on to customers. This usually has a twofold effect. The first is lack of business credibility and the second is the adverse impact on bottom line.