During this session Li Mao from our product management team, and Tom Hayes from Solutions Consulting present a real world example of failure in the supplier risk assessment process, and how it caused significant disruption for a major healthcare provider. We talk through how procurement professionals can: 1. Learn from this example and apply simple checks as part of their on-going process. 2. Avoid common pitfalls many organizations encounter. 3. Collaborate with their compliance peers to gain a big-picture view of potential disruption risks. Watch the recording of this talk on our archive page: https://www.experian.com/business-information/landing/sip-and-solve.html

1. 1 © Experian 02/10/2019
Sip and Solve
Minimizing supplier disruption in
your supply chain
Featuring:
Tom Hayes
Solutions Consultant
Li Mao
Sr. Product Manager, Fraud & Risk

2. 2 © Experian
Scenario:
Hospital’s sole critical linen supplier for
unexpectedly files bankruptcy and closes
their business.
• Established supplier with a strong
performance record.
• Commercial data was not monitored for
risk changes.
• No secondary supplier.
• Created severe disruption while vetting
and securing new supplier.
Importance of Supply Chain Management
Sip and Solve: Minimizing Supplier Disruption in your Supply Chain

3. 3 © Experian
Supply Chain Risk Management
New
Supplier
Onboarding
Risk
Assessment
Supplier
Monitoring
Supplier
Analysis
Sip and Solve: Minimizing Supplier Disruption in your Supply Chain

4. 4 © Experian
Supply Chain Risk Management
New
Supplier
Onboarding
Risk
Assessment
Supplier
Monitoring
Supplier
Analysis
• Streamline onboarding of
new suppliers
• Capture documentation like
license, proof of insurance,
financial statements and
more.
Sip and Solve: Minimizing Supplier Disruption in your Supply Chain

5. 5 © Experian
Supply Chain Risk Management
New
Supplier
Onboarding
Risk
Assessment
Supplier
Monitoring
Supplier
Analysis
• Access risk with new
suppliers
• Financial Stability Score
• Corporate Linkage
• Economic Diversity
• OFAC
• Streamline onboarding of
new suppliers
• Capture documentation like
license, proof of insurance,
financial statements and
more.
Sip and Solve: Minimizing Supplier Disruption in your Supply Chain

6. 6 © Experian
Supply Chain Risk Management
New
Supplier
Onboarding
Risk
Assessment
Supplier
Monitoring
Supplier
Analysis
• Access risk with new
suppliers
• Financial Stability Score
• Corporate Linkage
• Economic Diversity
• OFAC
• Streamline onboarding of
new suppliers
• Capture documentation like
license, proof of insurance,
financial statements and
more.
• Bankruptcy
• Financial Risk
• Public Records
• UCC Filings
• Debarred
Sip and Solve: Minimizing Supplier Disruption in your Supply Chain

7. 7 © Experian
Supply Chain Risk Management
New
Supplier
Onboarding
Risk
Assessment
Supplier
Monitoring
Supplier
Analysis
• Access risk with new
suppliers
• Financial Stability Score
• Corporate Linkage
• Economic Diversity
• OFAC
• Streamline onboarding of
new suppliers
• Capture documentation like
license, proof of insurance,
financial statements and
more.
• Bankruptcy
• Financial Risk
• Public Records
• UCC Filings
• Debarred
• Match & append data
to aid in Spend Analysis:
Risk Scores, Linkage,
Diversity Data
• Key Risk Indicators/KPI’s
• Customizable KPI metrics
Sip and Solve: Minimizing Supplier Disruption in your Supply Chain

8. 8 © Experian
What is in a business name…millions of dollars
Scenario
A Global Oil and Gas
company’s procurement team
was wasting millions when it
realized it was negotiating
contracts within multiple
divisions of the same
business.
Solution
Corporate Linkage –
Leverage company hierarchy
data on all contract
negotiations to fully
understand total spend and
determine where price
reductions should be
negotiated.
Sip and Solve: Minimizing Supplier Disruption in your Supply Chain

9. 9 © Experian
Corporate Linkage: Headquarters, subsidiaries and
branches
Branch Headquarters
Food, Inc.
DBA: CA
Food
89 State St.
Irvine, CA
Crocker Industries
123 Main St.
Phoenix, AZ
Crocker
Industries
123 Main St.
Phoenix, AZ
Crocker
Industries
5 Park Ave.
Mesa, AZ
Food Inc.
123 Main St.
Phoenix, AZ
Food, Inc.
123 Main St.
Phoenix, AZ
Corporate linkage
example:
Headquarters
• Business with branches
• Financially responsible for branches
Branch/Division
• Secondary location of its headquarters
• No legal responsibility for debt even if bills paid from
the branch location
• Primary name always the same as the headquarters
but may operate under a different trade name
Subsidiary
• Corporation with greater than 50% of its stock is
owned by another corporation
Sip and Solve: Minimizing Supplier Disruption in your Supply Chain

10. 10 © Experian
Doing your due diligence with compliance
Protect your brand, reputation and bottom line – avoid non-compliance by ensuring Know
Your Customer (KYC) checks are part of your procurement due diligence.
Disparate data sources
Reduce overall risk
Lengthy review process
Consolidate data
furnishers
Build KYC risk models
Automate processes
CHALLENGE SOLUTION
Sip and Solve: Minimizing Supplier Disruption in your Supply Chain

11. 11 © Experian
To wrap up…
Keys to creating and maintaining a compliant
supply chain:
• Create an efficient onboarding process to
assess risk of suppliers
• Monitor suppliers on an ongoing basis
• Diversify supply base
• Utilize data and analytical tools to predict
future financial stability of suppliers to mitigate
potential disruptions
• Accurate corporate linkage is essential to help
roll up supplier spend and identify pricing
reductions
Sip and Solve: Minimizing Supplier Disruption in your Supply Chain

12. 12 © Experian 02/10/2019
Thank you!
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