For all organizations pursuing these initiatives, technology can play a critical role as a foundational platform that helps to identify, manage and mitigate supplier risk. Web-based supply risk management platforms also help to centralize the management of all supplier information (even in complex, decentralized people and technology environments). This enables companies to gain visibility into supplier information and business practices that are essential to mitigate and manage supply chain risk. Perhaps most important, risk management platforms can help unearth both the known risks a company faces and those that might arise in the future.
No one said that managing supply chain risk was easy. But the right processes and enabling technology can go a long way to helping companies save money, meet customer and shareholder expectations and preserve their hard-earned brand equity.
About the Author: Tim Albinson is the CEO at Aravo Solutions, a provider of supplier information management solutions. More information at www.aravo.com.