Supplier risk analysis aims to assess the risks presented by suppliers who provide the company with raw materials, energy, and information in order to prevent process outage resulting from a shortage of raw materials.
Challenges facing Supplier Risk Management
- determining revenue generated by end-to-end processes
- determining the proportion of raw materials delivered by suppliers within overall material requirements to serve the end-to-end process
- creating a balanced scorecard which takes all real risks into account
- compiling a supplier risk map