Risk Solutions International's Vendor Continuity Assessment ("VCA™") is a comprehensive third party validation of the operational resilience of your upstream supply chain partners. It addresses one of the most profound and poorly managed operational risk exposures facing manufacturers and retailers - the ability of their global suppliers to maintain credible delivery around inevitable natural and man-made disasters and disruptions.
Risk-conscious companies with complex supply chains need visibility into the operational resilience of their vendors to ensure that their potential disasters (raw materials delays, production snafus, shipping incidents, weather disasters, dock strikes or port closures) do not become your production or delivery fiasco. Employing lean manufacturing and just-in-time replenishment means that risk may have increased; ingredients, parts, packaging components, and product that fails to arrive on schedule can ruin the financial performance of the quarter.
A bulk of most retailers' and manufacturers' inventory is entangled in their supply chain - in the hands of hundreds or thousands of global vendors that they do not control. Responsible risk management - and essential corporate responsibility - would suggest the introduction of a visibility program to assess that exposure. Understanding the risks that suppliers face in getting materials, ingredients and packaging to manufacturing and distribution centers on time can help companies plan and manage around the inevitable problems that their vendors - and therefore they - face from a growing set of global risk exposures.
With the Vendor Continuity Assessment tool, Risk Solutions International can help clients create and impose business continuity standards on their vendors to mitigate client exposure to upstream risks. We help clients identify and address the weaknesses and deficiencies in the risk profiles of their supply chain partners, as part of the right-to-audit agreements clients should maintain with vendors. VCA gives clients insight and visibility they need to address these risks with their suppliers before they affect the bottom line. It helps them assess exposure to sole sourcing - especially in politically risky countries of origin. And it helps them fine tune their approach to inventory management and their understanding of supply chain disruption risk and its financial impact.
- Aggregates and analyzes detailed surveys and supporting documentation from your global suppliers about their business continuity and disaster recovery capabilities and practices,
- Provides visual "heat maps" of the weak links in the disaster preparedness of the supply chain - by product category, ingredient, country or port of origin, port of entry, transit line, type of risk (political, pandemic, etc.),
- Incorporates standards from the International Organization for Standardization (ISO), the Disaster Recovery Institute International (DRII) and the Business Continuity Institute of London (BCI),
- Is built on a highly secure AICPA-approved Web platform that enables vendors to easily complete assessment surveys and attach attesting documentation, and
- Provides suppliers with training and templates for adopting their own continuity and recovery plans.
VCA provides real time viewing of the weak points in the global supply chain on a geographic, product line or vendor basis. Questions and submittals are weighted, customized and "rolled up" into senior management reports, with data analytics across multiple supply chain and vendor risk factors. The VCA can be used as a multi-year program to provide trend analysis and to track the operational preparedness of clients' vendor pool - by factors such as product or product line, category, vendor, country of origin, FOB or receiving port, or by political risk considerations.
Risk Solutions International's VCA reporting output can be generated to meet a wide range of risk, merchandise planning, sourcing or logistics needs. The VCA can also be utilized to quantify the impact of upstream and downstream supply chain losses and their affect on profitability and insurance requirements like contingent business interruption coverage.