riskmethods survey data highlights the struggles to prioritize both cost savings and risk tolerance to protect business and drive innovation
BOSTON (PRWEB) April 17, 2018
riskmethods, the market leader in supply chain risk management, today announced the results of a global survey on cost, risk and the evolving role of procurement in today’s supply chains. The survey focused on uncovering how well procurement teams today are balancing cost savings vs risk management to drive growth, and to better understand how the role of procurement has changed in our modern business landscape. The survey results are summarized in a downloadable report entitled: Cost vs. Risk and the Evolving Role of Procurement.
“Today’s procurement landscape is evolving, as is the role of today’s procurement leaders,” said Bill DeMartino, General Manager of North America at riskmethods. “Procurement professionals are now tasked with more strategic roles, not only prioritizing cost savings, but understanding and utilizing costs and risks to protect the business and drive innovation. However, we found many organizations are ill equipped to balance these competing priorities that will ultimately help move their business into tomorrow.”
Key survey findings include the following:
- 70 percent of survey respondents chose “be more strategic and act preventatively” when asked to select the driving reason behind prioritizing supply chain risk management in their organizations. This goes to show the larger strategic role that procurement leaders are being tasked with, and suggests that reactive risk management is becoming less viable.
- 49 percent of respondents said that they have no structured assessment when asked if they possessed a mechanism for measuring supplier impact.
- Only 27 percent said they have structured, quantitative assessment of financial impact related to supply chains when asked if they possessed a mechanism for measuring supplier impact and 44 percent have a qualitative assessment of criticality of suppliers, such as substitutability. This is a huge blind spot for procurement teams and businesses in avoiding and mitigating major disruptions.
- 58 percent of respondents said that solving the conflict of their objectives of minimizing risk vs. generating savings is either unclear or just not solved, meaning procurement is operating in a state of fluctuating goals, usually in favor of cost savings where risk could be higher.
The research was conducted in late 2017 via an online poll of more than 250 senior procurement executives with day-to-day oversight and management of global supply chains within organizations of all sizes and industries.
Download the report: Cost vs. Risk and the Evolving Role of Procurement to read riskmethods’ full findings.
riskmethods provides award winning Supply Chain Risk Management solutions to address the entire lifecycle of identifying risk, assessing impact and enacting plans to prevent or mitigate risk. Our approach combines innovative Big Data and Artificial intelligence capabilities with insightful risk intelligence to ensure that the right people have the right information at the right time. Over 100 businesses trust riskmethods to fuel their supply chain risk management programs. Armed with a digitized representation of the risk profile for their supply network, our customers are able to make better decisions and achieve first-mover advantage in the face of threats. This immediate visibility to emerging risk exposure helps clients assure supply, maintain compliance and protect their revenue and reputation. http://www.riskmethods.net | @riskmethods1 | Visit us on Facebook and LinkedIn