{"id":320,"date":"2012-04-10T12:29:11","date_gmt":"2012-04-10T12:29:11","guid":{"rendered":"https:\/\/stagingwww.zycus.com\/leveraging-technology-to-manage-supplier-risks"},"modified":"2026-02-09T17:10:49","modified_gmt":"2026-02-09T17:10:49","slug":"leveraging-technology-to-manage-supplier-risks","status":"publish","type":"post","link":"https:\/\/dev.zycus.com\/freshz\/blog\/procurement-technology\/leveraging-technology-to-manage-supplier-risks","title":{"rendered":"Leveraging technology to manage supplier risks"},"content":{"rendered":"<p>According to the latest Procurement Key Is\u00adsues study by The Hackett Group, <a href=\"https:\/\/dev.zycus.com\/freshz\/blog\/supplier-management\/a-complete-guide-to-vendor-management-its-benefits-challenges-process-best-practices\">managing supplier risks<\/a> is cited as the second most important concern for procurement in the next year. In addition, the report notes that the concept of supplier risk has broadened from one of supplier viability and continuity to an approach that includes supplier compliance with both regulatory and <a href=\"https:\/\/dev.zycus.com\/freshz\/blog\/supplier-management\/supplier-performance-evaluation-a-quick-checklist\" target=\"_blank\" rel=\"noopener\">performance requirements<\/a>.<\/p>\n<p>In spite of this, most companies we observe still use only rudimentary models for capturing and mitigating supplier and supply-chain risks. These can be broadly classified into:<\/p>\n<ul>\n<li>\u00a0<strong>Quantitative: <\/strong>collecting financial details, quality certifications and other important \u2014 but basic-level information<\/li>\n<li>\u00a0<strong>Qualitative: <\/strong>related to historic performance param\u00adeters such as on-time delivery, number of defective parts per million, adherence to discount rates and so forth.<\/li>\n<\/ul>\n<p>Building a sustainable supplier relationship requires organizations to consider suppliers\u2019 entire ecosystem to managing supply risk &amp; preventing costly supply disruptions. Such an approach requires analysis of suppli\u00aders\u2019 markets, competitors, and the overall performance of their extended supply chains.<\/p>\n<p>Best in class organizations are leveraging on the procurement automation solutions to build sustainable supplier relationships. This post will provide a brief insight into the role played by <a title=\"Supplier\" href=\"https:\/\/dev.zycus.com\/freshz\/solution\/supplier-management\" target=\"_blank\" rel=\"noopener\">Supplier Information Management<\/a> (SIM) &amp; <a title=\"Supplier\" href=\"https:\/\/dev.zycus.com\/freshz\/solution\/supplier-management\" target=\"_blank\" rel=\"noopener\">Supplier Performance Management<\/a> solutions (SPM) in building a better relationship with suppliers.<\/p>\n<p><a href=\"https:\/\/dev.zycus.com\/freshz\/knowledge-hub\/whitepapers\/cure-for-chief-procurement-officers\" target=\"_blank\" rel=\"noopener\"><img fetchpriority=\"high\" decoding=\"async\" class=\"alignnone\" src=\"https:\/\/dev.zycus.com\/freshz\/wp-content\/uploads\/2018\/04\/Pull_Out_900x250.webp\" alt=\"Let\" width=\"900\" height=\"250\" \/><\/a><\/p>\n<p>SIM solutions acts as a central repository for all supplier information including legal details, qual\u00adity certifications, numbers of employees, business regu\u00adlatory permissions, compliance certificates, corporate hierarchies, diversity status and so forth. Information gathered must provide 360-degree views of important suppliers. Inte\u00adgrated supplier blacklist lookups ensure that a company does not engage in business with debarred parties.<\/p>\n<p>SPM monitors suppliers on Key Performance Indi\u00adcators (KPIs) set by the organization. These vary across organizations, verticals and geographic regions. KPIs should essentially represent a mixture of qualitative and quantitative information captured in the SIM module. Configurable supplier scorecards can be based on com\u00adbined qualitative and quantitative performance metrics.<\/p>\n<p>&nbsp;<\/p>\n<p>Learn More: <a href=\"https:\/\/dev.zycus.com\/freshz\/blog\/supplier-management\/a-complete-guide-to-vendor-management-its-benefits-challenges-process-best-practices\">Vendor Management Guide<\/a><\/p>\n<p><strong>Related Read:<\/strong><\/p>\n<ol>\n<li><a href=\"https:\/\/dev.zycus.com\/freshz\/blog\/supplier-management\/mitigate-supply-chain-risk-in-manufacturing-sector\">Blog \u2013 How to Effectively Mitigate Supply Chain Risk in the Manufacturing Sector<\/a><\/li>\n<li><a href=\"https:\/\/dev.zycus.com\/freshz\/blog\/procurement-technology\/an-overview-of-s2p-kpis-the-balancing-act-benchmarks\">Blog \u2013 An Overview of S2P KPIs, The Balancing Act &amp; Benchmarks<\/a><\/li>\n<li><a href=\"https:\/\/dev.zycus.com\/freshz\/blog\/strategic-sourcing\/vendor-landscape-supplier-risk-and-performance-management\">Blog \u2013 Vendor Landscape: Supplier Risk And Performance Management<\/a><\/li>\n<li><a href=\"https:\/\/dev.zycus.com\/freshz\/solution\/supplier-information-management-software\">Zycus\u2019 iSupplier, Supplier Information Management Software<\/a><\/li>\n<li><a href=\"https:\/\/dev.zycus.com\/freshz\/knowledge-hub\/whitepapers\/ensuring-efficient-supplier-risk-management-with-supply-chain-transparency\">White paper \u2013 Ensuring Efficient Supplier Risk Management with Supply Chain Transparency<\/a><\/li>\n<li><a href=\"https:\/\/dev.zycus.com\/freshz\/knowledge-hub\/on-demand-webinar\/techwatch-transform-supplier-risk-management-with-irisk\">TechWatch: Transform Supplier Risk Management with iRisk<\/a><\/li>\n<\/ol>\n","protected":false},"excerpt":{"rendered":"<p>According to the latest Procurement Key Is\u00adsues study by The Hackett Group, managing supplier risks is cited as the second most important concern for procurement in the next year. In addition, the report notes that the concept of supplier risk has broadened from one of supplier viability and continuity to an approach that includes supplier [&hellip;]<\/p>\n","protected":false},"author":1,"featured_media":96358,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"site-sidebar-layout":"default","site-content-layout":"default","ast-site-content-layout":"default","site-content-style":"default","site-sidebar-style":"default","ast-global-header-display":"","ast-banner-title-visibility":"","ast-main-header-display":"","ast-hfb-above-header-display":"","ast-hfb-below-header-display":"","ast-hfb-mobile-header-display":"","site-post-title":"","ast-breadcrumbs-content":"","ast-featured-img":"","footer-sml-layout":"","theme-transparent-header-meta":"default","adv-header-id-meta":"","stick-header-meta":"default","header-above-stick-meta":"","header-main-stick-meta":"","header-below-stick-meta":"","astra-migrate-meta-layouts":"set","ast-page-background-enabled":"default","ast-page-background-meta":{"desktop":{"background-color":"","background-image":"","background-repeat":"repeat","background-position":"center center","background-size":"auto","background-attachment":"scroll","background-type":"","background-media":"","overlay-type":"","overlay-color":"","overlay-opacity":"","overlay-gradient":""},"tablet":{"background-color":"","background-image":"","background-repeat":"repeat","background-position":"center center","background-size":"auto","background-attachment":"scroll","background-type":"","background-media":"","overlay-type":"","overlay-color":"","overlay-opacity":"","overlay-gradient":""},"mobile":{"background-color":"","background-image":"","background-repeat":"repeat","background-position":"center center","background-size":"auto","background-attachment":"scroll","background-type":"","background-media":"","overlay-type":"","overlay-color":"","overlay-opacity":"","overlay-gradient":""}},"ast-content-background-meta":{"desktop":{"background-color":"var(--ast-global-color-5)","background-image":"","background-repeat":"repeat","background-position":"center center","background-size":"auto","background-attachment":"scroll","background-type":"","background-media":"","overlay-type":"","overlay-color":"","overlay-opacity":"","overlay-gradient":""},"tablet":{"background-color":"var(--ast-global-color-5)","background-image":"","background-repeat":"repeat","background-position":"center center","background-size":"auto","background-attachment":"scroll","background-type":"","background-media":"","overlay-type":"","overlay-color":"","overlay-opacity":"","overlay-gradient":""},"mobile":{"background-color":"var(--ast-global-color-5)","background-image":"","background-repeat":"repeat","background-position":"center center","background-size":"auto","background-attachment":"scroll","background-type":"","background-media":"","overlay-type":"","overlay-color":"","overlay-opacity":"","overlay-gradient":""}},"footnotes":""},"categories":[1937,1939],"tags":[586,380,587,588,589,371,590,547,356,384,591,592,593],"ppma_author":[170],"class_list":["post-320","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-procurement-technology","category-supplier-management","tag-central-repository","tag-kpi","tag-leverage-technology","tag-manage-supplier-risks","tag-procurement-automation","tag-procurement-technology-2","tag-supplier-ecosystem","tag-supplier-information-management","tag-supplier-management-2","tag-supplier-performance-management","tag-supplier-scorecards","tag-supply-chain-risk","tag-sustainable-supplier-relationship"],"acf":[],"authors":[{"term_id":170,"user_id":0,"is_guest":1,"slug":"zycus-inc","display_name":"Zycus","avatar_url":{"url":"https:\/\/dev.zycus.com\/freshz\/wp-content\/uploads\/2025\/02\/zycus-author.png","url2x":"https:\/\/dev.zycus.com\/freshz\/wp-content\/uploads\/2025\/02\/zycus-author.png"},"author_category":"0","last_name":"Agentic Procurement Platform","first_name":"Zycus","job_title":"","user_url":"https:\/\/dev.zycus.com\/freshz","description":"Zycus is an Agentic Procurement Platform that is redefining procurement from Source-to-Pay to Intake-to-Outcomes. Its unified platform combines native Intake, agentic AI, and an end-to-end S2P core to help enterprises drive real procurement outcomes \u2014 not just transactions. Recognized by Gartner, Forrester, IDC, and customers worldwide, Zycus is shaping the next generation of procurement with the Merlin Agentic AI Platform."}],"_links":{"self":[{"href":"https:\/\/dev.zycus.com\/freshz\/wp-json\/wp\/v2\/posts\/320","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/dev.zycus.com\/freshz\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/dev.zycus.com\/freshz\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/dev.zycus.com\/freshz\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/dev.zycus.com\/freshz\/wp-json\/wp\/v2\/comments?post=320"}],"version-history":[{"count":0,"href":"https:\/\/dev.zycus.com\/freshz\/wp-json\/wp\/v2\/posts\/320\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/dev.zycus.com\/freshz\/wp-json\/wp\/v2\/media\/96358"}],"wp:attachment":[{"href":"https:\/\/dev.zycus.com\/freshz\/wp-json\/wp\/v2\/media?parent=320"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/dev.zycus.com\/freshz\/wp-json\/wp\/v2\/categories?post=320"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/dev.zycus.com\/freshz\/wp-json\/wp\/v2\/tags?post=320"},{"taxonomy":"author","embeddable":true,"href":"https:\/\/dev.zycus.com\/freshz\/wp-json\/wp\/v2\/ppma_author?post=320"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}