Login



For PLUS+ subscription assistance, contact customer service.

Not a PLUS+ Subscriber?

Become a PLUS+ Subscriber today and you'll get access to all Supply Chain Management Review premium content including:

  • Full Web Access
  • 7 Magazine Issues per Year
  • Companion Digital Editions
  • Digital Edition Archives
  • Bonus Email Newsletters

Subscribe Today!

Premium access to exclusive online content, companion digital editions, magazine issues and email newsletters.

Subscribe Now.


Become a PLUS+ subscriber and you'll get access to all Supply Chain Management Review premium content including:

  • Full Web Access. All feature articles, bonus reports and industry research through scmr.com.

  • 7 Magazine Issues per year of Supply Chain Management Review magazine.

  • Companion Digital Editions. Searchable replicas of each magazine issue. Read them in any web browser. Delivered by email faster than printed issues.

  • Digital Editions Archives. Every article, every chart and every table as it appeared in the magazine for all archive issues back to 2009.

  • Bonus email newsletters. Add convenient weekly and monthly email newsletters to your subscription to keep your finger on the pulse of the industry.

PLUS+ subscriptions start as low as $109/year*. Begin yours now.
That's less than $0.36 per day for access to information that you can use year-round to better manage your entire global supply chain.

For assistance with your PLUS+ subscription, contact customer service.

* Prices higher for subscriptions outside the USA.

You have been logged out of PLUS+


For PLUS+ subscription assistance, contact customer service.

Need to access our premium PLUS+ Content?
Upgrade your subscription now.


Our records show that you are currently receiving a free subscription to Supply Chain Management Review magazine, or your subscription has expired. To access our premium content, you need to upgrade your subscription to our PLUS+ status.

To upgrade your subscription account, please contact customer service at:

Email: [email protected] Phone: 1-800-598-6067 (1-508-663-1500 x294 outside USA)

Become a PLUS+ subscriber and you'll get access to all Supply Chain Management Review premium content including:

  • Full Web Access. All feature articles, bonus reports and industry research through scmr.com.

  • 7 Magazine Issues per year of Supply Chain Management Review magazine.

  • Companion Digital Editions. Searchable replicas of each magazine issue. Read them in any web browser. Delivered by email faster than printed issues.

  • Digital Editions Archives. Every article, every chart and every table as it appeared in the magazine for all archive issues back to 2010.

  • Bonus email newsletters. Add convenient weekly and monthly email newsletters to your subscription to keep your finger on the pulse of the industry.

PLUS+ subscriptions start as low as $129/year*. Start yours now.
That's less than $0.36 per day for access to information that you can use year-round to better manage your entire global supply chain.

This content is available for PLUS+ subscribers.


Already a PLUS+ subscriber?


To begin or upgrade your subscription, Become a PLUS+ subscriber now.

For assistance with your PLUS+ subscription, contact customer service.

Sorry, but your login to PLUS+ has failed.


Please recheck your login information and resubmit below.



For PLUS+ subscription assistance, contact customer service.

The Growth Potential in Managing Supplier Risk

The downsides of a supplier failure are pretty obvious. Less clear are the advantages to be gained by aggressively managing and mitigating supplier risk. Two supply chain management executives from DHL tell how their company transitioned from a reactive to a proactive approach to supplier risk.

By ·

The global economic downturn changed some fundamentals in nearly every industry, geography and area of business—from finance to operations, from compliance to procurement. The global recession may be dissipating, but its effects and lessons learned will have a significant impact on our approach to risk as we dust ourselves off and begin working in a recovering economic environment. As procurement professionals, perhaps the biggest change we see pre- to post-recession is the increased importance and focus on risk.  Furthermore, we’ve witnessed an evolution in viewing this area more holistically from risk management through risk mitigation.

The downturn moved risk from a good practice to a must do, best practice. For us at DHL, like many other companies, the eye-opener came when a number of suppliers started showing very weak financials with some Dun & Bradstreet scores indicating a high probability of near term business failure.  As a consequence,  supply chain risk management was abuzz again in C-Level suites and corporate boardrooms. 

The Aberdeen Group, an independent research firm, conducted a study on supplier risks before the downturn.  The report, “Supplier Risk Increasing While the Market Stands Still,” provided a glimpse into a more laissez faire attitude about supplier risk, with 49 percent of companies surveyed reporting that they did not have a developed supplier performance and risk management program in place.  Even then, many of these same companies, 62 percent of them, reported that they expected supplier risks to increase significantly over the next three years due to factors such as the globalization and disbursement of their supply base.  Enter the global recession and, combined with existing trends, supplier risk management has skyrocketed in importance.

Even as we enter an economic recovery, most companies competing in the global economy will face increased pressures and risks to their operations. As companies emerge from the downturn there will be a continued effort towards leaning the supply chain and outsourcing areas when there is a compelling value proposition.  This brings about reliance on suppliers who can proactively manage risk more dependably and on lower risk suppliers in areas such as logistics.  There will also be increased responsibility on purchasing professionals to proactively manage and mitigate risks by choosing optimal suppliers, monitoring them, and ultimately balance risk and return.

This complete article is available to subscribers only.
Click on Log In Now at the top of this article for full access.
Or, Start your PLUS+ subscription for instant access.

Not ready to subscribe, but need this article?
Buy the complete article now. Only $20.00. Instant PDF Download
.
Access the complete issue of Supply Chain Management Review magazine featuring
this article including every word, chart and table exactly as it appeared in the magazine.

By ·
Download Article PDF

The global economic downturn changed some fundamentals in nearly every industry, geography and area of business—from finance to operations, from compliance to procurement. The global recession may be dissipating, but its effects and lessons learned will have a significant impact on our approach to risk as we dust ourselves off and begin working in a recovering economic environment. As procurement professionals, perhaps the biggest change we see pre- to post-recession is the increased importance and focus on risk.  Furthermore, we’ve witnessed an evolution in viewing this area more holistically from risk management through risk mitigation.

The downturn moved risk from a good practice to a must do, best practice. For us at DHL, like many other companies, the eye-opener came when a number of suppliers started showing very weak financials with some Dun & Bradstreet scores indicating a high probability of near term business failure.  As a consequence,  supply chain risk management was abuzz again in C-Level suites and corporate boardrooms. 

The Aberdeen Group, an independent research firm, conducted a study on supplier risks before the downturn.  The report, “Supplier Risk Increasing While the Market Stands Still,” provided a glimpse into a more laissez faire attitude about supplier risk, with 49 percent of companies surveyed reporting that they did not have a developed supplier performance and risk management program in place.  Even then, many of these same companies, 62 percent of them, reported that they expected supplier risks to increase significantly over the next three years due to factors such as the globalization and disbursement of their supply base.  Enter the global recession and, combined with existing trends, supplier risk management has skyrocketed in importance.

Even as we enter an economic recovery, most companies competing in the global economy will face increased pressures and risks to their operations. As companies emerge from the downturn there will be a continued effort towards leaning the supply chain and outsourcing areas when there is a compelling value proposition.  This brings about reliance on suppliers who can proactively manage risk more dependably and on lower risk suppliers in areas such as logistics.  There will also be increased responsibility on purchasing professionals to proactively manage and mitigate risks by choosing optimal suppliers, monitoring them, and ultimately balance risk and return.

SUBSCRIBERS: Click here to download PDF of the full article.

Subscribe to Supply Chain Management Review Magazine!

Subscribe today. Don't Miss Out!
Get in-depth coverage from industry experts with proven techniques for cutting supply chain costs and case studies in supply chain best practices.
Start Your Subscription Today!

Latest Whitepaper
Best Practices for Seamless Integrated Transportation Management
Few companies are putting transportation management best practices to work in their supply chain operations. However, when executed correctly, a transportation management solution is an effective way to improve cost efficiency and serve evolving customer needs.
Download Today!
Subscribe to Our Email Newsletter
Sign up today to receive our FREE, weekly email newsletter!


Latest Webcast
New Attitudes for S&OP / IBP to Keep Pace with Evolving Markets
Have you ever wondered why so many companies struggle to implement an effective S&OP strategy? In this webinar we'll examine why it's time to view S&OP as an evolutionary process that is flexible, adaptable and forward thinking
Register Today!
EDITORS' PICKS
The Hackett Group Says Typical Procurement Organizations Need “Digital Transformation”
The potential cost take-out opportunity through digital transformation of the procurement function...
NAFTA Renegotiation and its Supply Chain Implications Explored
The first round of the negotiations among the United States, Canada and Mexico will take place in...

Resilinc Awarded Patent for supply Chain Risk Analytics and Vulnerability Maps
US Patent Number 9721294 protects the company’s unique supply chain risk analytics
Creating Holistic Supply Chain Sustainability: Not a Choice, a Given
When Oracle OpenWorld’s annual conference convenes in San Francisco this October, you can bet that...