Market intelligence - managing supplier risk
Does anyone have any experience of using intelligence providers to gather information that has helped in sourcing suppliers? Do managers consider 3rd party support as a key input when sourcing suppliers - particularly to offset risks?
Thanks a lot
Hi Thomas, it kind of depends on the extent and detail you want to go into, how much you want to spend, and what you want to understand about the supplier, either existing or new.
As Jozef stated, the most basic check is financial, which your own companies financial team can complete. Along with usual due diligence within Sourcing and Procurement, i.e. certificates, and who issued them.
From an ethical point of view, probably the most complete solution comes from Sedex, which generates a "sharing" platform based on supplier audit results, you share your audits, others share theirs, continually growing and improving the data held. The cost of membership to this depends on what you want to be able to do, and revenue of your company.
I also continually monitor my supply chain, and potential new sources, via CIPS risk index which provides a rather robust overview of the country your supplier or manufacturing is located. It is generated by good sources and updated on a regular basis.
Outside of that I personally haven't experienced or heard of any providers that are worth writing home about.
well financial Report is not a bad Thing - for example duns and bradstreet Report .. I was using this as a commodity buyer but there is nothing better than personal visit to the Company .. you know everything Looks good on paper untill you see it on your own ;) .. important Thing is to see if the Company is investing, if there are old machines, capacity possibilities or Limits, Quality of emplyees and processes and so on .. hard to get a Report on this from a 3rd Party .. they would have to do mroe than just financial reports from available public data ..