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Reasons of failure and risk related to the suppliers Approach: risk management & segment suppliers Categorization of suppliers & monitoring requirement Leading practices under the risk management Q&A
*Source: http://www.supplychainquarterly.com/topics/Global/20121001-segment-your-suppliers-to-reduce-risk/
9 April 2014
Lost customer
Delays in delivery
Econom ic
Fewer revenues
Disruption in supplies
Disruption
Solutio n
Segment Suppliers
Strategic
Tactical
Transactional
Effective due diligence watch in place - identify leading risk indicators and risk-adjusted prices
Conduct survey to identify specialized nature of the risks associated with each supply segment for a respective industry Risk analysis of potential weak links - suppliers is itself dependent on the same upstream supplier for certain aspects: - Intellectual property - Outsourcing - Transportation