Procurement Risk Management

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. 

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.