Suppliers are the lifeblood of many organizations. Regardless of what they are providing – a product, a service, or a combination of the two – companies depend on contractors and suppliers fulfilling their contracts.
While the symbiotic relationship between companies and their suppliers drives operations, that mutual reliance also introduces business risk. In a MIT-PwC survey of 209 companies with a global footprint, more than 60% noted that disruptions within their supply chains had led to a 3% or more drop in the respondents’ financial performance.
By gathering and monitoring key financial information on suppliers and contractors such as revenue, financial references, continuity plans, and third-party ratings, organizations can minimize the risks introduced to the business when partnering with a third-party firm.