In 2018 Carillion collapsed in times of relative economic stability. As we head towards a massive global downturn, do you know how your supply chain is faring? Peru Consulting's approach to Supply Chain Risk Assessment adds value - by understanding the reality that businesses just do not have the luxury of time to complete a supplier risk review over an extended period. The approach we have developed envisages a timebox situation and helps clients get the maximum value out of the exercise in the shortest space of time.

1. peruconsulting.co.uk
Top 5 Supply Chain Risk Pitfalls to Avoid

2. Pitfall One - Approach
2
Solution:
Single approach to identifying
supplier influence
Ranking questions by pertinence
and accessibility & reliability of
answers
Common method of assessing risk
probability & impact
Lack of consistency in the Supply Chain Risk Assessment process
Which suppliers to prioritise? What questions to ask? How to score risks?

3. Pitfall Two - Depth
3
Solution:
Assess your suppliers’ Supply Chain
Risk Assessment processes
Leverage your contractual rights
e.g. subcontractors clauses
Collaborate with your suppliers to
review upstream risk
Supply Chain Risk Assessment limited to direct 3rd parties only
Who are your suppliers’ suppliers?

4. Pitfall Three - Time
4
Solution:
Use an approach that helps you to
focus on the correct suppliers &
risks
Automate tasks such as
communicating with suppliers
Estimate time & resources required
for the risk assessment
Time to conduct Supply Chain Risk Assessment miscalculated
What is the right amount of time? How can limited time be best used?

5. Pitfall Four - Governance
5
Solution:
Categorise suppliers and types of
risk
Automate top-level risk reporting
with drill down to backing data
Report on risks by concentration
within supplier categories or risk
categories
No strategic view of supplier risk
How do we aggregate risk data? How do we report risks to executives?

6. Pitfall Five - Independence
6
Solution:
Implement independent assurance
of critical suppliers
Use a proven risk assessment
framework
Corroborate supplier operational
performance externally
Lack of objective review of supply chain risks
Is relationship owner objective? Do key suppliers require enhanced assurance?

7. Need better Supply Chain Risk Assessment outcomes?
7
Solution:
One of the most sophisticated
approaches to Supply Chain Risk
Assessment in the marketplace
An advanced Supply Chain Risk
Assessment playbook
Decades of supplier risk
assessment advisory experience
Trust Peru Consulting to take a
fresh look at your supply chain
risks