Supply Node Exposure Estimator – Understand the Impact on your Bottom Line
SCAIR®’s Supply Node Exposure Estimator is the crucial business interruption estimation tool that can help you understand the vulnerable links in your organisation’s product supply chain. It maps out critical supply points and their relationship with each other and produces loss estimates for failures in supply chains which could result in business interruptions.
This vital information can be used to identify mitigation measures which provide an acceptable level of risk to the business. It can also help you respond appropriately to failures in the supply chain.
Mapping Value and Vulnerability through Supply Chain Risk Quantification
By using existing business data such as internal planning information and profit predictions, the Supply Node Exposure Estimator quantifies the accumulated exposure of your business’s portfolio of products for each critical supply point. These include owned internal locations as well as 3rd party suppliers.
The quantification process results in individual loss estimates for each supply point. These loss calculations attempt to model the reputational damage caused by a supply interruption. They account not only for profits lost during the period that a company is unable to supply the market, but also the on-going impact of a supply interruption in terms of permanent loss in market share. All loss estimates include:
- The gross profit loss during the supply outage which is dependent on scenario
- The loss in market share once the supply of product is restored
- The additional cost of working
Helping Businesses Prioritise Risk Mitigating Actions
The Supply Node Exposure Estimator’s loss estimates represent the true value at risk to your business’s complete product portfolio. This data can be used to inform cost benefit analysis of investments in contingencies and the prioritisation of mitigation actions. It can also be used to optimise insurance buying or risk financing decisions. For more information on our assessment process, take a look at our Supply Chain Risk Assessment page.