Written by: Amy Cornforth
Posted on: 22/11/23
Improve Risk Management in Procurement and Supply Chain.
Are you struggling to get on top of risk management in procurement or supply chain? This list details the actions you can take to streamline this process.
Procurement and Supply Chain Risk Management is No Easy Task
Supply chain sourcing is a risky business. Ultimately, procurement and supply chain risk management professionals must ensure they are completing the required due diligence. If not, then they could risk working with suppliers who aren’t compliant.
But managing risk in the supply chain is no simple task. If there are no specific systems for information management in place, data can become siloed and messy. Time is also lost to inefficiency, while data integrity is also compromised.
Not to worry – here are five ways to improve risk management in procurement and supply chain.
1. Decide on a Supply Chain Risk Management Process
Without a specified process, it’s common for procurement processes to become siloed and mismanaged. This ultimately compromises data integrity due to errors from rekeying across spreadsheets. Operating from a software solution that is configured to your exact process improves your level of data integrity.
2. Implement Smart Technologies to Improve Process
Ever heard of automation? Artificial Intelligence? API Integration?
These technologies are lifelines when trying to ensure supplier compliance, while also increasing efficiency. Use technology to conduct checks, source official data, and automatically conduct repetitive tasks on your behalf.
3. Verify Documentation with Artificial Intelligence
When collecting supplier documentation, it’s beneficial to verify certifications using Artificial Intelligence. This ensures that any discrepancies are flagged for further investigation, adding an additional layer of security.
4. Increase Automation in Supply Chain and Procurement
Remember we mentioned automation?
By using software that automatically carries out repetitive administration, capacity in the workforce is freed to work on more challenging tasks.
5. Centralise Information Across Risk Management
Keeping all your supplier data in one accessible location is imperative when managing risk. This way, you can ensure that all stakeholders are using the most up-to-date information.
ARCUS® Supplier Management software aids risk management in procurement and supply chain by offering a comprehensive supplier management solution.