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Keeping The Risk On Suppliers

Polly
(@Polly)
Eminent Member Registered

Have You Used These Techniques To Manage Risk?

When contemplating the purchase of a new product or service or doing business with a new supplier, you face risk. Many bad things could happen, including:

* The product or service could be of unacceptable quality
* The supplier could fail to perform
* The supplier may go out of business

There are consequences if these things happen. Your organization could lose money. Your organization may fall behind on its schedule. Your reputation as an excellent purchaser could be tarnished.

As an agent of your organization, you must take steps to protect your organization from this risk. While risk management is a topic that is way too extensive to comprehensively cover in a one-page article, here are a few tips for managing risk when dealing with a new product, service, or supplier:

1. Get A Sample Before Making A Long-Term Commitment

If you're buying a product, ask for a low- or no-cost returnable sample of the product so that your organization may assess its quality. If you're buying a service, have the service performed on a one-time basis for the same reason. There is no better proof that a product or service will suit your needs.

2. Ask For A Money-Back Guarantee

You shouldn't lose money if you are not satisfied. Ask for a money-back guarantee. If the supplier declines, you're probably best not doing business with that supplier. After all, why should you have the confidence in the supplier's product or service when the supplier doesn't? If the supplier offers the guarantee, the load on your shoulders is much lighter.

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Topic starter Posted : 17/05/2010 5:44 am
JohnAdams
(@JohnAdams)
New Member Registered

Re: Keeping The Risk On Suppliers

As the economic crisis has shown, running a company is risky business and executives don’t have enough tools that can help them steer clear of catastrophes. But supply chain software maker Aravo is launching a software service today that can help companies reduce their risks.
If the economic downturn has weakened a key supplier, this software will rate how stable or shaky that company is. And it will recommend that you find a second source, and then rate that company as well. The idea is to help companies examine their entire supply chain to find hidden risks.

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Posted : 04/06/2010 10:20 am
jasmine19`
(@jasmine19`)
Eminent Member Registered

Re: Keeping The Risk On Suppliers

Supplier management, perhaps once seen as something that company executives might get around to considering, is now seen by many as imperative to survival. Supply-line breakdown is all the more likely in today's financially strapped world when suppliers are more challenged than ever.
The Dresser-Rand Group, one of the largest suppliers of rotating equipment solutions to the worldwide oil, gas, petrochemical, and process industries, could well be in the vanguard of companies implementing supplier-management solutions.
Dresser-Rand's client list includes BP, Chevron, ExxonMobil, General Electric, Fluor, Jacobs Engineering, Rolls-Royce and Solar. Thousands of suppliers worldwide across multiple industries help it serve those customers. An estimated 10 percent of of those suppliers are deemed absolutely critical to the manufacturer's operations. With $2.2bn in revenue in 2008, the company knows it has to stay on top of its supply lines or risk losing staggering sums.
No two projects are alike, says Dresser-Rand's Caldwell Hart, but huge financial loss is a common denominator if parts and products aren't available. “Some of our customers can lose millions of dollars and hour when equipment goes down.” Clearly, suppliers who can't perform in such instances are a liability.

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Posted : 07/06/2010 6:23 am
freya
(@freya)
Active Member Registered

Re: Keeping The Risk On Suppliers

Hi guys

As the economic crisis has shown, running a company is risky business and executives don’t have enough tools that can help them steer clear of catastrophes. But supply chain software maker Aravo is launching a software service today that can help companies reduce their risks.
If the economic downturn has weakened a key supplier, this software will rate how stable or shaky that company is. And it will recommend that you find a second source, and then rate that company as well. The idea is to help companies examine their entire supply chain to find hidden risks.

Have a nice day

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Posted : 11/06/2010 9:20 am
Vidya wires
(@vidya-wires)
Active Member Registered
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Points: 60

In Supplier risk management, there are numerous risks that tend to come up - delays from suppliers, production disturbances, natural disasters, theft, shortages and cybersecurity, organizational and operational issues.

 

  • Supply failure or delay risk
  • Brand damage 
  • Loss of competitive advantage
  • Price and cost risk
  • Quality risk

 

Alongside other industries, the copper wire industry is becoming more helpful. Vidya Wire already overcome this business issue & solving industrial demand by providing the best-insulated copper wire in India.

 

Copper Wire Manufacturer in India

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Posted : 10/05/2022 9:57 am
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