Managing Investment Risk Between You and Your Suppliers

Author(s):

Stephen C. Rogers, MSIA
Stephen C. Rogers, MSIA, Senior Consultant, Cincinnati Consulting Consortium, 513/232-9297; armo@cinci.rr.com
Lisa L. Cooley
Lisa L. Cooley, MBA. Associate Director Global Purchases Training & Development, Procter and Gamble Company, 513/983-0929; Cooley.ll@pg.com

90th Annual International Conference Proceedings - 2005 - San Antonio, TX

Abstract

As suppliers become a larger part of companies’ value chains and product propositions, dealing with the risks suppliers take on your behalf becomes a key element of successful Supply Management. Things are not always as simple as just using existing supplier capacity/capability, especially in tight markets and for unique or proprietary designed components/services. Recognizing the six types of risk that can affect supplier investments, and having a process to manage those risks as projects move along and change over time, can make the difference between efficient supplier inputs and significant financial and operational issues that destroy value. Supply Management rarely can manage these risks alone, but rather requires multi-functional alignment and support.