Do you know where the risk is in your projects and how to manage it effectively?
Today’s post is from our SafeSourcing Blog Archives
Yesterday we began to look at some of the steps necessary to minimize the risk of sourcing projects. Understanding the current landscape and reducing complexity were two of the first steps to take so that the types of risks that may be encountered can be identifying and addressed. Today we will wrap up the series by looking at three more steps to be considered in the risk management approach to strategic sourcing events.
Plan for unknown risk– Once risks have begun to be identified and accounted for the path to risk management begins to get clearer and clearer but as in every plan in life, unexpected and unknown events will always occur. One of the popular mottos on the popular reality show “Big Brother” is “Expect the Unexpected.” This statement is no less true in strategic sourcing initiatives and is an important factor to maintaining timelines and producing projects with great results and great participation. Some of the common areas to build in added time for unknown risk are: information collecting; specification development; supplier engagement and reporting and analysis. The more time built in however the longer projects will take so there must be a balance in order to achieve successful projects whose results are able to be realized in a timely manner.
Use your tools– There are many tools that companies have access to that can help with planning for and managing risk be providing “what-if” scenarios and vision into what is happening around them. Online Survey tools, RFI and RFP tools, Online Bidding tools are all effective means to help build a successful platform for a strategic process. With so many of these types of tools being accessible through the internet remote resources and suppliers can plan and communicate to each other in a way that provides immediate feedback and collaboration. When people are working to together the number of surprises and risks begins to go down in direct proportions.
Share in the planning– Include your current partners in discussions as you plan your projects. Many times companies feel as though they need to covertly plan sourcing events keeping their incumbent suppliers in the dark until the moment that the communication is distributed about the upcoming project. Some companies do this to reduce the impact on their current service however in many cases, collecting information from your current partners about the services they provide can give them an opportunity to let their customers know what additional services they are currently providing that are not part of the initial scope. These are the types of things that should be accounted for so that any new suppliers can be measured against what a company is currently getting today. While no supplier likes to run the risk of losing current business, they must understand that in today’s world expenses must be constantly reviewed. Good suppliers will know that they have offerings that are unparalleled and will be more than willing to collaborate with their customers in advance of a new project.
At SafeSourcing we are constantly working with organizations to assist them with their sourcing needs in a strategic way. Part of a successful process begins with understanding and planning for the risks that may occur well in advance. For more information on how we can help with your projects or on our “Risk Free” trial program, please contact a SafeSourcing Customer Service Representative. We have an entire customer services team waiting to assist you today.
We look forward to your comments.