How to mitigate risk in your supply chain
83% of businesses experienced supply chain disruptions over the last year, many of them unrelated to the pandemic, according to a survey conducted by the Business Continuity Institute. Up until about 20 years ago, supply chain management tended to focus on reactive over proactive strategies when dealing with issues such as compliance, damage, or pilferage. But in the age of climate change, pandemics, and cyberattacks, reactive approaches are no longer viable.
How can companies avoid potential loss? Automating processes that alert companies to compliance risks among suppliers is an essential component. Vetting potential business partners involves screening them against denied party lists and conducting thorough risk assessments, two processes that are easier said than done. That’s where automated solutions can help. Today’s global trade management solutions can provide both the functionality and content that allow companies to assess the risks associated with potential partners and transactions.
- Why companies need to take a proactive approach to supply chain risk management
- How companies can identify partners and suppliers posing the greatest risk
- How to conduct risk assessments to avoid reputational harm and financial loss