Uncover the hidden relationships in your supplier chain
Global supply chains are increasingly complex and interconnected. In turn, the consequences of disruptions to them have become increasingly difficult to assess. Whether the threat comes from unknown exposures in your supply chain, natural disasters, or geopolitical events, being able to identify and proactively address supplier risks is critical to the resilience of your business. According to Swiss Re's sigma experts, supply chain losses can be devastating, posing a significant challenge both to companies and to insurers. (Page 18 of sigma under "Contingent business interruption")
Identifying critical suppliers is key for improved accumulation management, especially unique suppliers of specialised or scarce products. An event at a small cluster of factories could have a large ripple effect regionally or globally. Disruption at a small but deeply networked supplier shines a light on supply chain interdependencies. A single breakdown can quickly ripple across the globe with devastating financial consequences. For example, a fire at a magnesium die-cast plant in the United States in May 2018 disrupted worldwide automotive supply chains. Major automakers temporarily idled plants as they determined how to restore production.
Reconciling and combining external data sources into a flexible data structure can offer tangible insights into an industry's supply chain.
Risk managers need to understand these key-dependencies. By combining external data sources, and using sophisticated risk and data modeling techniques, we help risk managers gain a deeper understanding of the various dimensions of their connected risk. For each supplier, we provide an overall risk score and specific threats are analysed, such as fire, flood, geopolitical events, or financial distress. Next, we provide indicators of the vulnerability of your supply chain network to disruption at a specific site. This understanding of the vulnerability of a supplier location can be used to steer procurement strategy and in some cases trigger the engagement of loss prevention experts to advise the supplier. These insights help ensure that risk managers focus limited resources for risk mitigation strategies on those areas that are most vulnerable.
By partnering with SwissRe, we can help you uncover and explore hidden relationships and highlight emerging risks in your network.