We know that having a sustainable supply chain management system is currently a huge challenge for brand owners, this is because it is a tricky area for food businesses to keep up to date.
The problem is the complex nature of the food supply chain and a wide range of processes are needed to manage an efficient supplier relationship. The food safety perspective demands an effective supplier approval management, efficient supplier compliance management and an accurate sustainability system.
What’s the Solution?
Many progressive food businesses are using supplier relationship management software to combine food safety and sustainability or CSR requirements from their supply chains, into a single process. This can certainly help to reduce duplication, reduce the burden on the supply chain and turn out to be much more cost effective in the long term.
QADEX supplier management solution combines supplier relationship management software with supply chain risk assessment and supplier approval management to create a one-stop, cost effective and easy to use solution for food and drink businesses.
A New Way of Thinking
Now it is possible to examine other categories of risk presented by your suppliers, which can be used to create a 360 degree view of risk on a supplier by supplier basis.
Many businesses today assess supplier risk from a number of perspectives such as food safety, ethical, environmental, financial & commerical. There are often different people responsible for each area running several different systems. This results in duplication of effort, silos of data and lack of joined up initiatives to reduce supply chain risk.
Part of QADEX supplier relationship management software is Supplier Risk Assessment which facilitates different team members managing different risk areas and provides an intuitive and easy to use interface where all supplier risks can be pulled into one report for combined or segregated risk mitigation.
This can provide massive advantages for your company, here are some of the biggest:
Reducing Environmental & Sustainability Risks
Environmental & sustainability risks cover risks such as sourcing from areas that are water stressed or where the production is damaging the local environment. Many retailers and consumers are becoming increasingly focused on the sustainability of their suppliers.
QADEX supplier self audits can be used to gather and assess environmental and sustainability data from your supply chain which is then auto populated into your environmental and sustainability risk assessment for scoring. Where risks are deemed high the system can be used to identify and log mitigation actions.
Reducing Commercial Risks
The commercial risk of a supplier can include factors such as product uniqueness, where you cannot source the product from another supplier, if a problem was to occur with your incumbent supplier. Or product origin if a product can only be sourced from one location which may suffer from location based risks such as, geopolitical risk, economic risk etc
QADEX supplier self audits can be used to gather data from your supply chain relating to the areas such as geopolitical and economic risks, identity of unique ingredients or processes in the supply chain, range of sourcing options for your suppliers which is then auto populated into your commercial risk assessment for scoring. Where risks are deemed high the system can be used to identify and log mitigation actions.
Reducing Financial Risks
The financial risk of a supplier will reflect the financial strength of each supplier and their likelihood of failing or being acquired by a competitor of yours, who would then be in a position to restrict raw material supply to you.
QADEX supplier self audits can be used to gather data from your supply chain relating to areas such as supplier size, balance sheet, profitability and other publically available financial data which can be auto populated into your financial risk assessment for scoring. Where risks are deemed high the system can be used to identify and log mitigation actions.
A deterioration in supplier financial strength will then be noticed allowing closer attention.
If you would like to find out more about the QADEX supplier relationship management software then please get in touch: