Vendor Risk Management
16 Jul Vendor risk management – using supply chain finance to mitigate risk
Many suppliers will offer a discount for early payment. The decision to accept the discount is normally based on two factors. Are you in a position to pay the invoice early? (i.e. are your purchase to pay processes efficient enough to do so) and secondly, the size of the discount. What is not normally considered is arguably the most important factor of all – the mitigation of risk.22 Apr Cloud Crash – an all too predicable disaster
In the last 12 months or so there has been a number of natural events that have had unpredicted consequences to business. There was the Volcano that grounded Europe and created significant disruption to some global supply chains. There was (and still is) unrest in northern Africa that made many business question the safety of their assumptions when selecting locations for low cost country outsourced operations and there was the tragic earthquake and tsunami in Japan with it enormous human cost and the lingering consequences to any business reliant on Japanese industry. Procurement and sourcing organizations play a vital role in helping to mitigate and manage the risks inherent in operating in a fragile global economy. Risk management is regrettably under valued sometimes but these events should have brought into crisp focus the necessity of ensuring that backup strategies are in places - not just for the routing, mundane and predictable events but also for the unthinkable. And this is why it's so shocking to have seen the massive disruption cause by Amazon cloud crash this week.09 Jul Spend Analysis – the Key to Managing Through A Recession
Posted at 11:16h
in Procurement Best Practices, Purchase to Pay, Purchase to Pay Process, Spend Analysis, Vendor Risk Management
What gets measured gets managed. It's a slightly tired truism but it's very relevant to Purchase to Pay and, sadly, often overlooked. Most P2P (Purchase to Pay) projects are justified as a means to reduce cost. They introduce efficient processes that allows purchasing payment and accounting...
06 Jul Global Sourcing – Think Global. Act Local
The supply chain world is changing. The disruption in Europe recently caused by the grounding of aircraft as a result of the volcano in Iceland; the soaring labor costs in Asia and the far East; the green and ethical agenda that has taken hold in...
18 Apr The Volcano Eyjafjallajoekull Threatens to Rewrite the Global Sourcing Rulebook
As the mass grounding of aircraft across most of Europe is about to enter its 5th day, the consequences to business of the major eruption of the volcano Eyjafjallajoekull in Iceland are just beginning to be contemplated. The priority thus far has been to get stranded...
05 Feb Vendor Risk Management – a top priority for 2010
It’s quite alarming how many large and even very large organisations that, despite performing adequate or even thorough risk assessments of their vendors at the outset of a contract, do not carry out on-going risk assessments of their supplier base. It is all too often...