In its white paper, How to Mitigate Supplier Risk in 2023, Portt has explored what’s affecting global supply and supplier performance, including ongoing impacts of COVID-19 and the Ukraine war.
The Portt white paper has gathered up to date insights to help businesses understand which key factors are impacting the supply chain right now, and how to alleviate the risks that come from these massive disruptions.
Ultimately, the key to achieving optimal supplier performance is getting full visibility into the supplier lifecycle, which goes beyond Tier 1 vendors.
Businesses are still facing the challenges caused by COVID-19. Logistics disruptions that stemmed from the pandemic continue to impact both companies and consumers, as the movement of consumer goods into key global markets remains limited by the interference to major global ports and airports,” the white paper states.
The white paper also includes innovative strategies and tips procurement professionals can implement to alleviate supplier risk and optimise your supplier management.
The paper recommends five actions procurement teams should implement:
- Implement ongoing risk management – prioritise risk management throughout the supplier relationship.
- Use technology for accurate insights – have right-time analytics
- Manage supplier data efficiently – add on-going reports and keep details up-to-date
- Establish clear KPIs – track supplier performance through KPIs such as lead times, invoice accuracy, compliance rate, emergency spend, customer service and ROI and benefit tracking.
- Consider a regional or local approach – Having a supply chain closer to home and utilising local suppliers can provide more control and flexibility.
In looking ahead to 2023, Portt says the repercussions of the pandemic will still loom.
Turbulence will continue to disrupt the supply chain, and procurement experts will need to adopt an agile mindset to proactively manage risk.
Additionally, understanding the deeper levels of the suppliers will allow businesses to focus on a longer-term strategy rather than reacting to disruptions as they happen.
Knowledge is power, and mitigating risk throughout the supplier lifecycle comes down to visibility.
Intuitive software that provides real-time analytics and seamless integrations for risk assessment equips businesses with the high quality data needed to anticipate issues in the supply chain
— before they impact business performance.
Clear digital procurement strategies will enable
companies to focus on the bigger picture, while still driving positive near-term results.