A large pharmaceutical manufacturer wanted a detailed picture of its manufacturing supply chain dependencies as part of a risk mitigation assessment.
The business decided that materials management/procurement systems were inadequate for the task, as they often don’t hold manufacturing location data. Instead, they are more likely to have a record of an agent or distributor of the manufacturer. Also, these systems are designed to prioritise risk based on spend, rather than value at risk, which makes it difficult to prioritise the mitigation of suppliers that could be the most financially damaging if impaired.
The risk director used SCAIR® to identify and quantify the locations that presented most financial risk to the business; and the Natural Catastrophe alerting tool to provide the procurement team with information about their most exposed supply locations.