Survey finds widespread supply chain risk management failures

Aravo has published the results of a new supplier risk poll exploring the opinions and concerns of Fortune 1000 executives. While global corporations are focusing on creating collaborative partnerships with suppliers to make supply chains more efficient, the poll indicates that their top concerns include ongoing supplier financial viability, ensuring regulatory compliance, and managing suppliers in emerging markets.

A significant number of those polled (71.4 percent) expressed that their biggest concern continues to be risk of supplier financial viability. However, despite these concerns, more than half of the financial, procurement and risk executives polled have less than 20 percent of their supplier base under active risk management.

"Based on our poll results we see a call to action for global corporations to implement more robust risk management processes to reduce the possibility of supplier failures and supply disruptions, improve supplier performance management, and enhance supplier compliance initiatives," said Aravo CEO Tim Albinson. "More than half the companies we surveyed are managing 20 percent or fewer of their suppliers for risk, which is an alarming statistic. Large enterprises today require a comprehensive supplier risk management solution to provide supply chain teams with the data and intelligence required for proactive supplier risk management. As we saw in 2008 and 2009, supplier failures can lead to broader business failures, so this is a critical area for business leaders to get right."

www.aravo.com

•Date: 13th Jan 2010 • Region: US/World •Type: Article •Topic: Operational risk
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