New Research from ProcureCon and RapidRatings Reveals over a Third of Procurement Professionals Experienced a Serious Supplier Risk Event in the Past 18 Months
June 29, 2017
NEW YORK – June 28, 2017 – ProcureCon Indirect East and RapidRatings™ have released a new research report uncovering how procurement professionals can use key metrics to avert supply chain disruptions before they’re allowed to occur. As the role of the procurement department has matured, a more proactive role in risk management and earning a seat at the table for strategic decisions have come with it. Considering more than one out of every three procurement executives are dealing with the fallout from a risk event within the last two years, not taking the proper precautions will likely lead to significant disruption.
The report, The State of Risk, is based on the responses of 88 high ranking procurement executives who attended the 2017 ProcureCon Indirect East conference. Some of the main highlights from the report include:
- Over 33% of respondents have experienced a significant supplier risk event in the last two years
- The majority of survey respondents don’t actively track the financial health of their suppliers after onboarding, despite financial issues being the most commonly cited cause of supplier disruptions
- Only 14% of respondents reported having a resilience strategy in place for their supply chain
“The ProcureCon survey picks up on the impact of supplier financial issues as the major category of disruption,” said Peter Murray, Managing Director Supply Chain Risk and Resilience at RapidRatings. “Financial health is the root cause of so many supplier-caused disruptions, no matter what the immediate issue seems to be. In our research, we see supplier performance issues with quality and delivery being preceded by declines in financial health months and even years in advance.”
Given the relationships uncovered between the financial health of suppliers and the likelihood of significant supply chain disruptions down the road, the report includes both significant key findings, as well as several key recommendations for increasing the efficiency and security of the supply chain.
To read the full report, please click here.
RapidRatings is transforming the way the world’s leading companies manage enterprise and financial risk. RapidRatings provides the most sophisticated analysis of the financial health of public and private companies in the world. The company’s analytics system provides predictive insights into third-party partners, suppliers, vendors, customers and securities issuers. Every business conversation becomes more productive, transparent and efficient with the RapidRatings Financial Health System™.
The ProcureCon event series brings together a unique blend of Procurement, Purchasing, and Supply Chain experts from across all industries to share their experiences and knowledge with a team of people who truly embrace the strategically important field of Procurement. Learn more about our upcoming ProcureCon event here: procureconeast.wbresearch.com