What Is Sub-tier Visibility?
Among other things, the COVID-19 crisis revealed the risk exposure of most organizations’ supply chains due to their inability to properly map their supply chains and supply paths. Yet with visibility into the sub-tiers, enterprises can address supply chain shortages or other disruptions.
According to Deloitte’s CPO Study 2021, around 70% of survey participants have visibility into their tier 1 suppliers, but only 15% of organizations say they have visibility into tier 2 and beyond. Although organizations are increasingly gaining tier 1 visibility, sub-tier visibility remains elusive. Yet this remains a critical capability for strengthening supply chain resilience and establishing a competitive advantage.
By improving your ability to visually map your sub-tier suppliers, your organization is able to clearly identify supply chain dependencies and expose supply risk. You also discover new areas for supplier collaboration and identify new avenues of risk mitigation.
“Gaining sub-tier visibility continues to be one of the most complex and pressing challenges associated with managing supply chain risk. The process is manual, tedious, and time-consuming, and rarely benefits the supplier. We’re overcoming this issue by automating processes, making it easy to collaborate, and offering tangible value for each participant in the trading relationship.” Heiko Schwarz, CEO and founder of riskmethods.