Procurement Risk Management

Mitigate your procurement risk and turn challenges into opportunities

Procurement Risk Management

We champion procurement transformation programs in your company to turn sourcing and procurement into a competitive advantage. Risk in the supply chain has increased significantly with Covid and other extreme disruptions ( flooding, harbour closures, transportation issues…), causing significant shortages in the supply of components , materials and services. Procurement can be an uncertain environment due to the great costs and numbers of stakeholders involved. Companies should reevaluate their procurement risk approach. 

Aligning your procurement strategy and corporate business objectives with the right suppliers is essential to drive collaboration and capture returns to improve your bottom line. When procuring goods and services companies need to consider the risks attached at every stage. Sourcing Champions supports companies with a clear risk management approach, driving clear risk mitigation initiatives & tracking.

Procurement risk is the potential for failures of a  procurement process designed to purchase services, products or resources. Such risks can therefore often disrupt procurement operations or directly affect procurement costs. Either way, procurement uncertainties tend to be costly and affect your bottom line. Managing uncertainties is thus a vital part for companies, especially those operating with multiple suppliers across international borders. 

How Do We Help?

We assist your company in effective risk management to help increase your overall performance by contributing to:

  • Increase certainty and efficiency in procurement decision-making
  • Improve service and product delivery, delivering what the customer wants
  • Reduce waste and unnecessary spend
  • Increase time on innovative and sustainable procurement initiatives
  • Improve top-tier management and supplier compliance
  • Efficient use of resources 
  • Informed decision making 

We support in-depth procurement and category analysis to provide insights on various procurement aspects to identify new opportunities for sourcing and help ensure you and your supplier understand and comply to the terms and conditions agreed in your contracts. Our procurement experts assist you at every stage of the source-to-pay (P2P) space, to speed up the entire process while reducing procurement risk and ensuring your company does not lose potential.

Procurement Risk

Procurement has a large impact on your company’s performance and productivity. Having higher procurement risk can directly relate to compliance, cost, external, investing, quality, revenue, reputational and supply risk. Because your procurement strategy involves decision-making at all levels and effects your organization, your company should prioritize procurement risk mitigation to maximize efficiency and efficacy. 

Procurement risk can come from many levels in your source-to-contract space. Procurement processes will likely face risk exposure from: 

  • Financial risks
  • Availability risks
  • Compliance and legal risks
  • Market risks

“We drive clear risk mitigation, initiatives & tracking.”

Risk Mitigation

Risk management Is the process of identifying, understanding and grading risks so they can be managed and mitigated correctly.  Strategic sourcing strategies should help to mitigate high-profile risk by aligning business requirements with your suppliers.  Still with both direct and indirect sourcing, unexpected increases in costs are never impossible. We help asses and identify procurement risk in your company through: 

  • Risk identification
  • Risk analysis
  • Risk prioritization
  • Risk migration and avoidance
  • Risk monitoring

Our Digital Partner

To understand and report risk, companies need to form coherent reporting mechanisms where stakeholders can collaborate closely on managing and mitigating procurement risks. We partner with digital tools to collect, integrate and act on specific procurement risks relevant to specific procurement categories. 

Cirtuo is a one-stop software solution to determine procurement requirements, identify challenges, set strategic objectives, and most importantly, understand procurement specific risks. We partner with Cirtuo in order to help your company understand their footprint by gathering and analyzing procurement specific data. Cirtuo’s intelligent technology allows your company to completely visualize their procurement organization in category specific activities. We help assess your category specific performance to improve your overall company performance and strengthen your bottom and top line to withstand inevitable risks. Together with Cirtuo we advance your company in procurement innovation and digitalization. 

Risk Reporting

Risk management is a collective effort to understand, reduce and avoid risks. Most procurement risk can be present in more than one procurement category. Identifying overlapping uncertainties and points of emergencies, allows stakeholders to work together and coherently solve current or future problems. 

We not only help identifying risks, but also analyze and report them across multiple segments, to prioritize risks and quantify their impact. We ensure your procurement team takes action in the right direction, reduces procurement spend and leverages procurement performance. 

Risk Initiatives

Although some risks can be identified and mitigated, others simply come unexpected and are tougher to fight or avoid. Companies whose strategies are agile and flexible against external environments are those that can quickly react to changing environments. Risk initiatives therefore not only need to focus on risk reduction, but also on risk survival. How can your company pro-actively ensure against risk failure.

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