Today’s complex, global and multi-tiered supply chains make supplier failures extremely difficult to prevent. Companies frequently have a poor understanding of the structure of their supply networks beyond the first tier. Weaknesses and single points of failure can remain hidden in those networks, only becoming apparent when a damaging issue occurs. Having a vendor risk management strategy in place can help avoid lost sales and long-lasting reputational damage.
Organizations that do identify their lower tier suppliers may struggle to understand them. Risk assessment criteria, if they exist at all, can be limited to basic spend data or historical quality and delivery performance metrics. Those measures fail to adequately account for a wide range of risks, from natural disasters to technical and regulatory issues or labor relations problems. They are lagging indicators too, by the time an issue appears in the data, supply may already be compromised.
DHL Resilience360 provides a comprehensive set of tools that enable you to understand, evaluate and monitor supplier risks. The tool streamlines and accelerates the task of gathering insights from multi-tier supply chains through monitoring 8 million data points every day against a set of risk words and supplier names. Using machine learning capabilities, the tool enables you to identify early indicators of bankruptcy or financial losses and find out if your suppliers are impacted even before such information appears on traditional financial risk reports. Even new forms of disruptions, such as the rise of cyber-attacks in recently, can be tracked using our comprehensive data mining algorithms. The platform also allows you to build a comprehensive picture of risk exposure and resilience, across 31 individual risk databases, across your network. It tracks multiple categories of near real-time risk events across the world, like industrial explosions and production stoppages, and automatically alerts you to those that have the potential to affect your supply chains.