I have a portfolio of suppliers. How do I manage risk across this with all my managers?
Summary
In order to keep a view across your whole portfolio, you must measure how the portfolio delivers as a “unit”.
- Set your Portfolio Strategy: KPIs for Cost, Quality, Time.
- Measure Performance against KPI.
- Communicate the combined Portfolio Performance from a Risk Perspective.
By Business Documents UK Ltd Team . Published: 2016/05/16 11:02:01 AM, Last Updated: 2016/05/16 11:02:01 AM Answer URL
More detail
Too often, a Supplier Portfolio runs as a series of supplier “Silos” connected by contractual SLAs and hand-over points. This often leads to silo’d risk management, which can manifest as an issue at a portfolio level.
Risk Management at a Portfolio Level
To avoid issues at a portfolio level, performance must be measured and summarised together to ensure the entire Supply Portfolio is self-aware.
Be Portfolio-Aware!
- Set your Portfolio Strategy:
- KPIs for Cost, Quality, Time.
- This is a standard approach – nothing new YET
- Measure Performance against KPI.
- Again, nothing new here,… but the difference comes in #3..
- wait for it!
- Combined Portfolio view:
- Communicate the combined Portfolio Performance from a Risk Perspective.
- This must be done simply, and regularly, so that the whole Portfolio can monitor it.
- Update regularly and broadcast it.
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