The Cost of Doing It Yourself
Many of our customers previously invested scarce vendor manager time in
time-consuming risk programs that covered less risks, less suppliers and
had less follow-up to reduce identified risks. The result was:
• Stacks of supplier files that are hard to sort through & make sense of
• Incomplete and inconsistent data
• Maintenance headaches for you and your suppliers
• Little revenue protection
The Do It Yourself (DIY) approach raises organizational costs by assigning
time-intensive risk management tasks to vendor managers:
DIY Data Collection (4 hours per supplier)
• Define survey risk areas, questions and messages
• Send. Respond to supplier questions, track & follow-up
• Follow-up on inconsistent/skipped site responses
DIY Risk Reduction (12 hours per supplier)
• Analyze capabilities and risks of each site
• Request specific mitigations & compliance dates for each site
• Communicate, track & follow-up until site risks addressed
• Update survey next year and start again
Internal costs mount quickly from a DIY supplier risk reduction program:
• 100 suppliers * 16 hours * $50 = $80,000 per year
• 500 suppliers * 16 hours * $50 = $400,000 per year
• 3000 suppliers * 16 hours * $50 = $1,600,000 per year
Resource constraints force DIY teams to limit scope to top-spend suppliers
while leaving out many other suppliers of single/sole source parts and
unique production capabilities and critical subtier suppliers.
Some top-spend suppliers are reviewed in great depth while other critical
suppliers receive little review at all. Revenue remains at risk from critical
suppliers with no disaster recovery plans testing, poor environmental
safeguards, etc.
BCMexperts implements far more comprehensive and effective risk
mitigation program, and at a small fraction of the cost of DIY, it is very
affordable.
Contact us for a quote & solution demo
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