Originally Published on: SpendEdge |How to Use the Radar Risk Tool for a Clearer View of Supply Chain
Radar, a groundbreaking tool for risk assessment, is intricately crafted to empower businesses in understanding labor rights and environmental risks within their supply chains. Navigating supply chain risk can be overwhelming due to its multifaceted nature, spanning countries, sectors, and tiers. However, it stands as a crucial element in fortifying an ethical and resilient supply chain. Radar simplifies risk evaluation by combining inherent country and sector risks with supplier-specific information, highlighting potential issues. Through interactive global visualization and site-specific data, Radar reveals known risks at suppliers' sites, along with additional issues prevalent in specific sectors, countries, or regions. This enables businesses to grasp the most probable issues in their supply chains even during the early stages of risk assessment, empowering them to prioritize audits, risk management, and improvement initiatives based on the most common or severe issues. By placing vulnerable workers at the core of risk assessment, Radar prompts companies to focus on how risks may affect these individuals and to formulate effective due diligence and improvement plans tailored to their needs.
#RiskManagement #Sustainability
Incorporating smart, cloud-based supply chain management tools like Radar aligns with the findings of the SAP 2022 Supply Chain Survey, highlighting the increasing emphasis on supply chain visibility and the adoption of ERP and supply chain management systems. These tools facilitate supply chain planning and visibility, fostering transparency and leveraging technologies such as blockchain to mitigate business information risks, environmental risks, and various other supply chain risks. Notably, these risks encompass supplier performance, geopolitical risk, reputational risk, climate risk, and cyber risk, among others.
#SupplyChainTechnology #Transparency
