5 Proven Ways to Reduce Supply Chain Risk using SCMS

March 19, 2024

When managing global supply chains, where countless moving parts must align seamlessly to ensure operational success, mitigating supply chain risk is crucial. From unverified supplier to quality of contractors, the challenges facing modern supply chain managers are as diverse as they are daunting.

However, amidst this complexity lies a beacon of hope—Supplier Management Software. Supply Chain Management Software (SCMS) acts as a powerful tool that not only streamlines operations and enhances efficiency, but also serves as a shield against the uncertainties that threaten supply chain stability.

In this article, we’ll help you understand how SCM software can mitigate risk, exploring the five key ways in which it can fortify your supply chain against potential threats to stability.

Financial Health Checking

When it comes to mitigating risk, the financial health of your service providers, suppliers, and contractors plays a vital role. Without understanding the financial status of your service providers, you could put your business at risk. With unqualified or unreliable suppliers and contractors, your business could fail to meet project deadlines, lose money, and damage your reputation. Knowing the financial health of your suppliers will help you make an informed decision about who you work with, giving you peace of mind that your existing and future providers can be relied upon.

With Prosure360, you can access real time data, so you can immediately see an up-to-date analysis of your service providers. Prosure360 is a supplier management system which requires service providers to upload accurate data, ensuring it comes from a viable source.

financial health suppliers

It shows their insurances, professional memberships, services, and of course, their financial status. This makes it easy to keep track of the financial health of your suppliers and contractors, save you time, and enable you to focus on the things that matter in your business.

Ultimately, supplier management software like Prosure360, will ensure that your business only works with service providers who are financially stable; this reduces the risk of supply chain disruptions and financial loss.

SSIP Verification

SSIP, Safety Schemes in Procurement, takes a proactive approach which empowers your business to maintain a secure and compliant work environment. This will help you to identify and address potential hazards and strengthen your overall risk management strategies.

SSIP serves as a collective entity that unites different health and safety schemes. The evaluation of SSIP assessments is centred around the core criteria sanctioned by the HSE. This outlines the fundamental expectations for a business to adhere to basic health and safety legislation.

The SSIP certification offers a powerful tool to help you uncover potential safety risks lurking within your business, empowering you to take proactive measures and address them head-on. By embracing this verification, you can significantly reduce the likelihood of workplace accidents and injuries, safeguarding not only the well-being of your employees but also the reputation and financial stability of your business. SSIP will help you identify and mitigate hazards, ensuring you create a secure and thriving work environment.

Working with suppliers and contractors who have achieved the SSIP certification showcases a true commitment to health and safety. Not only does this certification demonstrate a genuine dedication to health and safety, but it also provides tangible evidence for your partners. By working with service providers who are SSIP verified, you can ensure a standardised approach, assuring your stakeholders that all your service providers meet consistent core criteria.

With Prosure360, you can set bespoke questions with our pre-qualified assessment, set around the SSIP core criteria. This gives you the insight needed to make an informed choice about the suppliers and contractors you work with. We provide SSIP assessments which we’ve now extended to include Republic of Ireland Duty Holder Categories, including:

  • SSIP Approved IE
  • SSIP Approved IE Contractor
  • SSIP Approved IE Project Supervisor Construction Stage (PSCS)

Only a handful of SSIP approved providers can offer this. So, Prosure360 is unique because it can deliver the SSIP, specific to the IE market.  By choosing suppliers who have achieved the SSIP certification, you can reduce risk across your business as you’ll have demonstrated that you can effectively practice good health and safety in all areas of your work.

Embed ESG Practices

Environmental, Social, and Governance (ESG)  has become an extremely important part of managing the supply chain.  Many companies now need to evidence exactly how they manage and document their supply chains policies, procedures, and commitments to ESG.

Nowadays, ESG and net zero considerations are an essential aspect of business management, particularly in the property management industry. By developing a robust ESG strategy, you can attract investors, improve asset value, and enhance tenant satisfaction. By embedding ESG into supply chain management, your business can reduce the risk of losing investors, key stakeholders, and clients.

Making sure the supply chain is integrated with ESG and net zero standards means you need to establish criteria for selecting the right suppliers and contactors. Therefore, you need to devise a system to check whether your service providers are certified and committed to sustainability.

Prosure360 can be a great solution for property managers and companies to improve their ESG score and effectively take control of their supply chain. Prosure360 allows you to define the criteria for your suppliers and contractors through the onboarding process.

By communicating your exact requirements to Prosure360, you have the power to set the criteria relating to ESG and net zero. This can then be relayed to the supply chain, helping your business to promote good ESG compliance.

Quality Control

Businesses that select qualified and compliant service providers significantly reduce the risk of supply chain disruptions, legal pitfalls, and reputational risks.

Checking the quality of your suppliers and contractors can be difficult without the support of supply chain software, especially for larger businesses. There is so much due diligence you need to conduct to make sure your service providers meet your specific standards. This means checking their financial health, verifying their certifications, ensuring they meet ESG requirements, and more.

It is possible to use spreadsheets to keep track of your suppliers’ information, but unfortunately, they don’t show real-time data. Spreadsheets can also be time consuming and tedious because you need to update and input data manually.

SCMS- software

SCM software simplifies this process, as it provides an easy way to quality check your service providers, suppliers, and contractors. Using supply chain management software (SCMS) allows you to implement an active quality process which can also help to identify savings and improvements in ways of working. Defining a supplier selection process with Prosure360 is so important because it helps you build professional relationships that reduce risk, improve brand reputation, and give you peace of mind.

Supplier Performance Management

Supplier performance management is essential for taking control of the supply chain and ensuring quality, consistency, and compliance.

Real-time data is the key to success when it comes to supplier management. Prosure360 offers you total visibility of your suppliers’ insurances, professional memberships, and financial status. This means that you can easily monitor and report on supplier performance, ensuring compliance and enabling informed decision-making.

Supply chain management software, like Prosure360, reduces risk in the supply chain. Using a red flag alert system, we give the service providers a risk score of gold, silver, bronze, or amber. This system ensures you can track your service providers’ performance and make an informed choice about whether to work with them.

By evaluating and addressing supplier performance metrics, businesses can identify areas for improvement, remain competitive, and mitigate risks.

If you’re ready to mitigate supply chain risk and skyrocket your business’ performance, book a demo with Prosure360 today!

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