Anticipating your supplier risks with an SRM solution

Real-time monitoring and updating of data is of overall importance in supplier risk management. It is one of the most effective ways to manage and control supplier risks. To this end, digital transformation has strongly supported the Procurement function, with SRM solutions such as SEMS.

The recent crises and the current economic context faced by Procurement Departments have a strong impact on supplier relationships and risk management, and are more surprising than unprecedented. Analysing, controlling and enriching supplier data are essential actions to optimise Procurement processes; companies increasingly find efficiency and performance by digitalising Procurement processes and optimising their sourcing and supplier master data. This helps companies identify, reduce and avoid the major risks they are exposed to by putting preventive action plans in place.

For Procurement and for companies as a whole, data quality is a real strategic lever to generate value, reduce costs and increase efficiency. Although it is difficult, if not impossible, to predict economic disruptions, a complete and effective supplier risk management solution or system will help your organisation prepare well for unexpected events. Software solutions such as SEMS take on their full importance here by relying on quality data, because incomplete data will inevitably lead to delays, errors and, most likely, higher costs.

SRM solutions give organisations the best conditions for running Procurement processes, in particular to negotiate and limit supplier risks.

Measuring capacity-related risks is closely linked to measuring supplier performance risks, also known as key performance indicators (KPIs). Indeed, to manage supplier performance, it is essential to have an SRM solution in order to improve decision-making, identify and reduce risks and improve the company’s performance.

Abdelilah EL ATTARI

Expert in digital transformation and Artificial Intelligence (AI): Procurement digitalisation (S2C, P2P), HRIS, Civic Tech and participatory democracy, Marketing and customer relations