1、1875 单词， 3280 汉字 原文 Five Best Practices to Mitigate Supplier Financial Risk Material Source: Supply & Demand Chain Executive,April 2010 Author: Kevin Cornish As we dig out from the worst recession since World War II, some companies may be tempted to consolidate resources and scale back their risk ma
2、nagement efforts. But dont be fooled. A strategy like that is potentially disastrous. After all, if we have learned anything over the past two years, its that in todays volatile global economy, businesses need to pay more attention to risk, not less. Supplier financial risk, in particular, still loo
3、ms large. Undercapitalized and overleveraged manufacturers the so-called zombie suppliers remain a significant threat, as do others that may be risking compliance, quality and your reputation simply because they need to cut costs. In the past, risk management of the enterprise refers to a company on
4、ly, but the global economic crisis under, enterprise involves overall business environment - your suppliers, the suppliers supplier, your customers, your distributor, even your banker. In Sara Lee himself company, rising fuel and animal feed costs makes commodity prices soaring. Consumer products co
5、mpany is facing the transfer of consumer demand, people from hotel, back to home for dinner. This is a double edged sword, provide us with two business line, food services and retail. Sara Lee him selfs chief supply chain officer George Chappelle explanation: it forces us really think about how to a
6、rrange production to adapt to these changes. One of the main change is merged two independent supply chain. It not only save 10% of management costs, but make us more effective in capital investment. The company pay more attention to lean manufacturing and six sigma management, and exit the partial
7、product line. In a way, supply chain management ability is becoming a recession, but also of the heritage under the suppliers and customers of financial viability of cautious assessment method. Credit and suppliers in some degree of stability undoubtedly the &colleges in supply chain risk management
8、 ability. Kellwood company CEO Michael Kramer said, this is a company with annual sales of $10 billion clothing manufacturer. We talked with the suppliers supplier, ask them, you get paid? if not, this means that their customers - our suppliers have already appeared financial problems. In annual sal
9、es of $560 million dollars in special glass and ceramics manufacturer Corning company, evaluate suppliers finances has risen to strategic level, purchasing team transformed into has financial credit analysis ability of the expert team. The senior vice President and chief financial officer, said, weR
10、ogus Mark in the account receivable strict management, also used in accounts payable. We analysis the key financial data, such as: working capital, investment performance, investment return on capital and equity returns, then such which piece about the future business will promote the growth of the
11、market expected project research. We also trying to find some can evaluate suppliers for obtaining funding ability of the material, to confirm whether they are in bank lending, as well as to whether lending success, etc. Once the required data, this company procurement team according to supplier fin
12、ancial status, and other key performance indicators, such as: products and quality of materials, data transparency, supply chain reliability of suppliers such as sorting. The cost of a particular supplier, the greater the potential risk is higher. Rogus said, its about business continuity. Of course
13、 continuity may need to ruthless and flexibility perfect combination. Kellwood company is combing supplier relations, we often take orders sent to China, to make full use of its advantages and cheap labor, the companys chief operating officer Michael Saunders said. when the economic decline, we nerv
14、ous and reduce inventory, but it could cause another kind of risk, may not be able to meet the rapid increase in global demand. In the final hour we reach a supplementary agreement with domestic suppliers, although this may take 10% 20% or more costs, but it to cope with demand rising may provide a
15、solid backing. Supplier continuity destruction would increase the risk for the entire supply chain are adverse within the parties. Financial supply chain improvement plan in an obvious source of the problems of their respective is suppliers and buyers of commercial factors to consider different. Sup
16、plier hope get payment, shorten the account receivable recycling days. But the buyer is thinking about as far as possible the delay payment is, prolong its accounts payable days. Banks are using structured financial products, find a balance between the two, and achieve win-win result.But,people grad
17、ually realized that cooperate with suppliers, helping them to promote efficiency, reduce cost, can bring more benefits. In this case, buyers business logic is very simple: we can help you to reduce costs, but at the same time hope you at lower rates or improve service for us. So, buyers company hope
18、 its suppliers can at lower costs, ensure financing plenty of resources, ensure long-term health and orderly operation. If forced suppliers with high interest loans would backfire, not only increased costs, still can endanger the whole supply chain. With the information technology and the developmen
19、t of economic globalization, competition between individual enterprise has been transformed into the competition between different supply chain. In the supply chain system, even in a supply chain members financial status, may also have stable enough to cause fatal blow throughout the supply chain, a
20、nd even cause capital chain rupture. To fully understand the supply chain for the nodal enterprises of financial risks faced by the size and influence, determine the risk level of supply chain, and evaluate the supervision of financial risk it is essential and urgent.But where should you begin? Are
21、there certain steps you can follow to initiate a comprehensive supplier financial risk management strategy? To help you get started, here are five best practices to mitigate supplier financial risk and help you better understand both the challenges ?and the opportunities ? that exist in your supplie
22、r network. 1. Identify critical suppliers and define your relationship with each one. Most companies keep a watchful eye on a few strategic suppliers, but these days you need to cast an even wider net. Risk assessments today are multi-faceted, interrelated and often highly variable, depending on flu
23、ctuating market conditions, and that means even threats from a minor supplier can create ?or signal ? bigger problems throughout your supply chain. Sure, if youre looking for a way to kick off a supplier financial risk management strategy, youll want to start with careful consideration of your most
24、critical suppliers ?just be certain you define critical in broad terms. Naturally, suppliers that have big spend will top your shortlist. But dont overlook important others. For example, be sure to include any suppliers that provide components crucial to your operations, as well as those that offer
25、unique technologies. You should also add suppliers that have benefited from your investment of time, money, R&D and all others that may be particularly sensitive to volatile market conditions owing to their size, location, etc. 2. Determine risk attributes that you need to monitor. Once you have pri
26、oritized your suppliers, decide on the particular financial risk attributes you need to monitor for each one. Consider factors such as the suppliers credit rating, the percentage of each suppliers revenue your company represents, immediate revenue and earnings information, stock price, Z-score, etc.
27、 Ultimately, settle on about a half-dozen key financial risk features for each supplier, so that you can attain a multi-dimensional profile of each ones overall fiscal health. 3. Gather/update supplier information. After identifying the financial risk attributes you want to monitor, you need to gath
28、er the most up-to-date, relevant information about each of these characteristics. To achieve this goal, youll have to access multiple data streams, including both third-party sources e.g., Lexis-Nexis and information acquired directly from the suppliers. For established suppliers, this task involves
29、 updating and/or supplementing data you probably already have on hand. For new suppliers, youll have to start from scratch. Dont be shy about picking up the phone and asking your suppliers for the details you need. After all, any successful supplier risk management strategy is grounded in precisely
30、that kind of close cooperation and information-sharing between buyers and sellers. In addition, its important to note that this step in the risk management process also involves determining how frequently you should update information on each supplier. For some, an annual review could be sufficient.
31、 Others may require attention every quarter or every month. Some companies find it beneficial to communicate daily with their strategic suppliers.Why? Because todays just-in-time inventory model demands that level of collaboration to ensure that goods and services get to market reliably and consiste
32、ntly. 4. Establish risk alerts. Regularly tracking key financial attributes for your suppliers is important. But that alone will do little to mitigate threats. You also have to launch a risk alert system that will let you know when one of your suppliers is underperforming financially. Establish para
33、meters that make sense for each supplier. For example, perhaps managers need to be notified if a strategic supplier misses two consecutive monthly updates. Or maybe its more important that the alert is linked to a poor quarterly report or drop in the suppliers credit rating. At this step, its essent
34、ial that someone owns the supplier information and is responsible for sounding the alert. You may find it helpful to group suppliers in sets of 10 or so； then you can assign each set to a different monitor. 5. Create corrective action plans and follow through. The final step in establishing a suppli
35、er financial risk management strategy is to generate corrective action plans for suppliers that pose a threat. If your alert system notifies you that a suppliers fiscal health is declining, you need to proactively address your concerns with the supplier and issue fair warnings for your intended cour
36、se of action if the situation is not resolved. During this process, methodical follow-through is imperative. After all, the purpose of a supplier risk management strategy is to mitigate threats in your supply chain. If a supplier is in financial straits, you need to face the problem head-on. Provide
37、 triage if you determine that its warranted. Otherwise, if the situation cannot be adequately resolved, youll need to shift your business ?and your focus ? to an alternative supplier. Supply chains today are more global, more interconnected and, therefore, more complex than ever before. Combine this
38、 with a worldwide recession that left many suppliers in poor financial health, and its easy to see why supplier risk management is quickly becoming a top priority on the corporate agenda. Monitoring a few strategic suppliers is no longer sufficient. And even the old 80-20 rule you need a risk management strategy for only 20 percent of your suppliers； the others dont pose a real threat is getting harder and harder to defend ?now that risk assessments are typically multifaceted, interrelated and often highly variable because theyre dependent on the
