SUPPLY CHAIN
Having a strategic approach to supplier onboarding is a key component of supply chain risk management .
Brian Alster is GM North America , Finance & Risk , for business intelligence and analytics multinational Dun & Bradstreet . He says that in today ’ s uncertain world , it is imperative that C-suiters “ act with urgency around risk ”.
Dun & Bradstreet helps businesses turn data into actionable insight , by leveraging its data cloud , which contains information on 500 million businesses around the globe .
In his role , Alster helps procurement and global sourcing organisations solve supply chain disruption challenges , and also to reduce expenses .
He says that the major risks facing supply chains right now is inflation , an unpredictable global economy and the ever-increasing regulatory burden on firms .
“Automating supply chain data allows you to find new suppliers or manage existing ones ”
BRIAN ALSTER GM NORTH AMERICA , FINANCE & RISK DUN & BRADSTREET
The regulatory landscape is in a state of extreme flux , due to increasing geopolitical issues ( Russia & Ukraine , China and the US and now Israel and the wider Middle East ), and Alster says companies are struggling to keep up .
“ This year we expect to see increased ESG regulation , which most companies have not yet built into their supplier onboarding risk assessment processes ,” he says . “ Companies are trying to go from being reactive to being proactive , which is really challenging in a global sourcing environment where they are trying to do more with the same , or fewer , resources .”
In terms of managing supply chain risk , Alster says there are four components of a successful supply chain program .
“ The first is having a risk-based assessment process that helps companies identify potential supplier risk upfront during the onboarding process ,” he says . “ That process should include a review of financial and credit , health , cyber risk , ESG risk , sanctions , and beneficial ownership .”
The second , he says , is to look at tier one suppliers in order to understand where the critical suppliers are . “ These might be in the sub-tier supply chain – in tiers two or three , which are your supplier ’ s suppliers ,” he explains . “ Most of our customers struggle for visibility on that second and third tier .”
26 December 2023