Integrated Risk Management: A Playbook for Procurement
By The Hackett Group
Risk is moving up on the agenda of corporate leadership due to its impact on the bottom line, market valuation and shareholder value. As modern supply chains grow more complex, the historical predominance of reactive risk management is no longer sustainable. The Hackett Group expects broad adoption of formalized supply risk management programs by world-class procurement and supply chain organizations in coming years. While global risks have grabbed most of the headlines, even greater risks may lie much closer to home. In fact, many companies face hazards to their supply chain caused by their own focus on cost reduction in recent years. For instance, while conventional practices like outsourcing, use of mega-suppliers, and Lean and just-in-time inventory management have clear business justifications, collectively they have increased risk by obscuring numerous vulnerabilities.
The Hackett Group
The Hackett Group (NASDAQ: HCKT) is an intellectual property-based strategic consultancy and leading enterprise benchmarking and best practices digital transformation firm to global companies, offering digital transformation including robotic process automation and enterprise cloud application implementation. Services include business transformation, enterprise analytics, working capital management and global business services. The Hackett Group also provides dedicated expertise in business strategy, operations, finance, human capital management, strategic sourcing, procurement and information technology, including its award-winning Oracle and SAP practices. The Hackett Group has completed more than 16,500 benchmarking studies with major corporations and government agencies, including 93% of the Dow Jones Industrials, 89% of the Fortune 100, 83% of the DAX 30 and 57% of the FTSE 100. These studies drive its Best Practice Intelligence CenterTM, which includes the firm’s benchmarking metrics, best practices repository, and best practice configuration guides and process flows that enable The Hackett Group’s clients and partners to achieve world-class performance.