Do You Have a Formal Supplier Risk Program?
The 58 percent of companies surveyed that regularly rescore suppliers have a formal supplier risk program in place. These companies assign a score to, on average, 75 percent of the suppliers in their programs. (The median is 100 percent!) Does your organization have a formal supplier risk program? If so, are you assigning and re-evaluating risk scores? A dynamic supplier risk program benefits from the rescoring of suppliers on a regular basis to adjust to changing risk and market conditions.
Most Companies Conduct Their Own Risk Assessments
Conducting and scoring supplier risk assessments are mainstream practices for most global companies across various industries, according to a survey conducted by CAPS Research. However, what is much less common among these same companies is the use of a third-party service to conduct some or all their assessments, with 71 percent of companies keeping the activity in-house.
Managed Spend by the Supply Management Group
Gaining control over the spend of the enterprise is how the supply management group can leverage savings, mitigate supplier risk and bring strategic value to the organization. Where is your supply management group on the journey to increase its influence and bring more value by managing more spend? The average managed spend for all companies is 84.1 percent.