The problem is simple: There’s an enormous amount of different types of events that could result in disruptions in your supplier network. And if you’re relying on basic financial indicators alone, you’re simply not getting the full picture.
Our Risk Intelligence experts are the data nerds around here, and they took a look at the alerts we sent out in 2018 to warn our customers about potential supply chain and supplier disruptions. Here’s what we found the top 5 most common risks to be.
#1: Company Viability
If one of your suppliers goes down, it has the potential to disrupt your entire business. A supplier shutdown is a big deal, and is of course something that you should be monitoring. The real key to managing this risk effectively, though, isn’t about being aware of it when it happens—it’s about getting the warning signs before it happens (also: making sure you can ask them about these warning signs when they happen). If you think it’s impossible to predict this kind of thing, you’re just not paying close enough attention. The thing you have to realize is: It's not just about standard financial ratings. By getting alerts about topics such as slow growth or poor revenue outlook, major ownership structure changes or major product recalls, you can be aware of your risky suppliers before they become actual threats to your business.