Operations Risk - How Can I Use Data to Support Business Continuity?
22 April 2020
Data can help procurement professionals to monitor and manage risks within their supply chains, which is especially important at a time when many are experiencing supply chain disruption. The first step to setting up a data analysis programme is to ensure you are working with clean data, as this will put you in the best position to interpret the information and make appropriate decisions. Once you have a clean data set, procurement professionals can develop a risk-based assessment process for onboarding and monitoring your supply chain.
Data analysis also allows for a greater level of supply chain visibility, which informs decision-making and management of risk. Firms should seek to establish a view of their supply chains across as many tiers as possible. As it is unrealistic to obtain a complete view of every tier in the supply chain, it is common for the task to be cascaded downward - so suppliers take responsibility of risk lower down from their tier. However, firms should ensure they still have overall visibility and therefore management of this. During a pandemic such as Covid-19, data can also help firms diversify their supply chains and identify alternative suppliers in less high-risk areas. It can be used to identify alternative streams of revenue for organisations where demand is low, which could include selling products directly to consumers when businesses are not operating or diverting your supply chain to provide a new product or service that is in high demand.
How data can help firms navigate coronavirus (Supply Management)
Risk tools (CIPS)