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Supplier Risk Management – V
March 21, 2008
It is tempting to view supplier risk management as primarily a defensive activity: trying to avoid the negative outcomes that create the damaging headlines and the anxious customers. While it certainly has that role, it should also be viewed as a pro-active activity that closely relates to supplier performance improvement and supplier development.
The key difference relates to what information is being requested and evaluated. Are you simply browbeating your suppliers over their outgoing product quality? Or, are you asking them questions, or even helping them accomplish, root cause analyses?
It’s the difference between reactively managing “symptoms,” versus trying to understand the underlying cause of the symptoms.
For two good primers on this broader view of supplier risk management, you can download the white paper and the Powerpoint slides from a recent Supply Chain Management Review webcast.
Posted by Robert A. Rudzki on March 21, 2008 | Comments (0)