Supplier intelligence is basically gathering information on strategic suppliers in a specific marketplace, in order to monitor their activities and determine the risk of doing business with them. Truly understanding supplier risk requires digging a lot deeper than simply knowing who a supplier is, what they provide, and at what price. A thorough knowledge of the entire value chain in the relevant industry, including manufacturing processes, supply chain dynamics, legal and regulatory requirements, and any other factors, internal or external, that have the potential to disrupt the supplier’s ability to meet client requirements and expectations.
The average client does not have the facilities, knowledge, time or resources to perform this type of in-depth analysis on each of their strategic suppliers or potential suppliers, and it would not make practical sense for them to attempt to do so anyway. Gathering, analyzing and drawing conclusions from supplier and marketplace data are highly specialized tasks that are usually better performed by external supplier intelligence experts.
Attempting to gather supplier intelligence internally carries with it three major risks:
1.Valuable resources (financial and manpower) are diverted away from core functions.
2.Organizational focus may be diluted, i.e. employees are so focused on trying to assess the potential risk of purchasing exercises that they do not place orders on time and delay company operations as a result.
3.Because any supplier intelligence gathered internally is usually based only on the company’s own previous interactions with specific suppliers, this information may be too narrowly based to be accurate. Just because a supplier met requirements on a few previous orders from the client does not mean that this is typical of their overall performance.
Rather, let our purpose-built supplier intelligence solutions and expert support team do the heavy lifting for you, leaving your organization free to focus on core competencies and areas of expertise.
Simfoni is a leading provider of analytics and enterprise apps for business. Contact us now to find out how we can make your business more efficient and save you money.