All procurement officers tell us that it is somewhat easier to manage risks with tier 1 suppliers rather than tier 2 or below suppliers. But most risks exist in tier 2 or below suppliers. Nowigence can go as deep as you want in your supply chain. Nowigence uses its technology to track 50+ business risk topics in areas like supply chain innovation, pricing changes, geographical risks, patents, distribution, sales, financial info, capacity, demand, deals, strategic moves and more- providing a robust view across the supply chain for procurement professionals. This up to date information keeps you in a ready mode to negotiate better terms, anticipate risks, mitigate risks and avoid budget overrun.
Common risks experienced, which are also analyzed by Nowigence include and are not limited to:
By using InsightTM, a large building insulation manufacturer was able to combat increasing freight costs, which is about 10% of their operating costs, and offset the risk of running over budget. With freight costs steadily rising week by week from November of 2016 to January of 2017, due to a decrease in available shipping capacity, we monitored the fluctuations in price, caused by previously unstable rates and a major freight shipping company's bankruptcy, as well as what other companies are doing to mitigate the disruption. InsightTM employed pioneering technology and processes to search for present and upcoming solutions to the problem, with an alert system in place to apprise the client when identified. Once a news item was picked up, discovering an e-auction platform launch with over 50 bids initially where the average price was $0.30 below the spot rate, the client was promptly alerted in time for a swift implementation with a new supplier, ultimately remaining under budget.