Press Releases

New Report Reveals Procurement Continues to Struggle with Latent Risks in Extended Supply Chains

April 27, 2016

Report by A.T. Kearney and Rapid Ratings identifies supply chain risk trends and recommendations for developing risk management strategies

A new report by A.T. Kearney and Rapid Ratings International suggests that supply chain risk management has declined in priority. As a result, procurement organization struggle with resiliency with most CPOs citing lack of bandwidth and budget as the biggest roadblocks to proactively managing supply chain risks.

The report, “Is Your Luck Running Out? Managing Supply Risk in Uncertain Times,” concludes that disruptions are inevitable, and organizations that can quickly identify, diagnose, and resolve these issues are best positioned to proactively manage their supply chain risk. Companies that invest in risk management practices that link procurement, category, and supplier management strategies produce optimal results. Other insights from the report include:

  • The evolution of supply management’s responsibilities over the past decade
  • Insight into financial health as a key metric for managing supply chain risk
  • The latent risks to the supply chain by country, supply market, and individual company
  • Leveraging risk management insight to inform long-term supply strategies

Carrie Ericson, vice president with A.T. Kearney Procurement and Analytic Solutions, and co-author of the study commented, “For most organizations, it is not a matter of if but when a supply disruption will occur. Although most acknowledge this fact, few have invested in the systems and programs needed to respond.”

The report also includes a summary of 12 macro trends that will play a major role in the current and future operating environment for businesses and especially for global supply chains. These global trends were developed by the A.T. Kearney Global Business Policy Council.

The report demonstrates how the Rapid Ratings proprietary FHR® (Financial Health Rating) can be effectively used to analyze the health of public and private companies globally, with comparison across industries and regions. It is the first time a study such as this has been published showing how combining the macro mega-trends analysis with a micro bottom-up company and industry analysis provides procurement executives with relevant industry insights to make informed risk management decisions.

Rose Kelly-Falls, Senior Vice President for Rapid Ratings, and co-author of the study noted, “Once supply strategies are in place, access to robust, relevant, and current data becomes the most important tool for identifying and mitigating ongoing risk.”

A copy of the report is available at


About Rapid Ratings

Rapid Ratings is the creator of the proprietary FHR® (Financial Health Rating), the industry’s leading assessment of public and private company financial health. The company’s disruptive methodology, scalable solutions, and unparalleled support enables businesses to effectively manage and price risks associated with the financial health of third-parties including customers, trading counterparties, suppliers, vendors, and investments. Rapid Ratings is the only company to rate public and private companies, globally and with the same depth of analysis. For more information, visit

About A.T. Kearney

A.T. Kearney is a leading global management consulting firm with offices in more than 40 countries. Since 1926, we have been trusted advisors to the world’s foremost organizations. A.T. Kearney is a partner-owned firm, committed to helping clients achieve immediate impact and growing advantage on their most mission-critical issues. For more information, visit


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