Integrated Risk- and Performance Analyses in strategic procurement
In this whitepaper we would like to share our knowledge in risk and performance management (RPM) and show examples for a useful integration of RPM in procurement. The interaction of performance and risk management holds important synergies and shows additional options to increase the added value of the company. These scenarios can be grouped into two main areas:
- Added value by risk intelligence in performance management and
- Benefits in risk management of the supply base through spend and performance data.
Download the full article as a compact whitepaper (PDF format).
The added values in performance management through risk information arise in several fields of application: Therefore, risk scores for suppliers can provide essential decision parameters for demand-bundling activities. The procurement department can now see which suppliers can be awarded more spend without having to worry that supply shortfalls may occur. Financial stability, threats in the supply chain through natural forces or regulatory aspects like political sanctions play an important role in risk management. Ongoing savings initiative decisions can be optimized by risk alarms in early hardness levels.