Avoid costly supply chain breakdowns
A supplier risk assessment can help alleviate your worries about costly disruptions in your supply chain. Our supplier risk assessment process can help to ensure that you get the materials, parts, and services you need when you need them, so you can operate efficiently and profitably.
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.
Bottom line — you can depend on the supplier assessment team’s knowledge and experience to calculate your suppliers’ current and future abilities to serve you because the team knows the supply base that manufacturers depend on. They will use their experience to help with supplier assessments of the financial condition of your supply base and minimize your exposure to production interruptions.
We will measure your suppliers’ risk to your business
The supplier development and assessment team will begin by collecting data on your suppliers. They will analyze and interpret it, then evaluate each of your suppliers relative to risk. Using indicators of operational and financial health as well as bankruptcy predictors, the supplier risk assessment team 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
The assessment team can develop a production transition plan for the suppliers who require resourcing. They will 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 the supplier risk assessment team 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 assess the financial condition of its other suppliers. We collected the data, performed a supplier assessment and analysis, 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 assessment template that is used to monitor its existing suppliers on an ongoing basis.