A proven tool helps manufacturers avoid costly supply chain breakdowns
In these difficult economic times, are you worried that your key suppliers might not be there when you need them, leaving you with customer orders you can’t fill? Our supplier risk assessment process can help to ensure that you have the timely receipt of materials, parts, and services your organization requires to operate efficiently and profitably.
Bottom line — we know the supply base and you can depend on the knowledge and experience of our supplier risk assessment team to assess your suppliers’ current and future abilities to serve you. Our clients represent more than 12 percent of the automotive supply base, so we have a unique understanding of the industry. We will use our experience to help you assess the financial condition of your supply base and minimize your exposure to production interruptions.
The current financial turmoil can impact companies in numerous ways. It is critical that your suppliers’ viability not disrupt your business. Using our proven supplier risk assessment methodology, we can help assure that your suppliers’ challenges don’t become your crises.
We will measure your suppliers' risk to your business
As part of our supplier risk assessment process, we collect supplier data, interpret it, and analyze it, then score each of your suppliers relative to risk. Using indicators of operational and financial health as well as bankruptcy predictors, we will identify:
- Suppliers who require immediate review for resourcing
- Those who need deeper assessment and closer monitoring for signs of further deterioration
- And those who should be considered for increased sourcing
Our risk assessment process is designed to identify problems before they negatively affect your organization.
For the suppliers who require resourcing, we can develop a production transition plan. We can help assess replacement suppliers and verify their capacity, capability, and financial resources, as well as develop and implement a transfer plan, including bank builds and the Production Part Approval Process (PPAP).
You can also rely on us to help you monitor the performance of your supplier base on an ongoing basis and provide you with an annual update.
Supplier risk assessment as prevention
After several of its suppliers announced shutdowns on short notice, leaving it with expensive options to fill the gaps, a $400 million manufacturer asked us to conduct a supplier risk assessment on the financial condition of its other suppliers. We collected the data, analyzed it, and developed risk profiles on the suppliers. The company replaced some of its suppliers and kept a close watch on others. To support its efforts to keep a strong supply chain in these uncertain economic times, we developed a supplier risk assessment template that is used to monitor its existing suppliers on an ongoing basis.