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Manufacturing & Distribution

Improving Relationships with Suppliers

Mitigating risks at critical suppliers

Improving Relationships with Suppliers
Improving Relationships with Suppliers

Percipio applied a proprietary, holistic risk-assessment model that evaluates supplier risk beyond traditional quality and delivery metrics. Through a combination of interviews and online surveys, we assessed risk across six dimensions—relationship, performance, human resources, supply chain disruption, financial health, and environmental factors—while also evaluating potential revenue impact beyond typical spend-based measures. This approach enabled Percipio to quantify the revenue exposure associated with supplier disruptions.

We presented the assessment results and then identified and analyzed critical suppliers in greater depth. Percipio facilitated collaborative workshops with the client and its suppliers, incorporating root-cause analysis using Ishikawa (fishbone) diagrams. These sessions produced clear, actionable mitigation plans to address risks and resolve issues.

As a result, the client was able to make more informed decisions regarding supplier development and supply base optimization. Targeted mitigation actions at critical suppliers improved performance and reduced future risk. In addition, Percipio developed a training manual that accelerated adoption of this approach across other business units, enabling rapid and sustained realization of benefits.

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One of America’s largest heavy truck manufacturers needed to address unplanned supplier shortages, quality problems, and even supplier bankruptcies. As part of a larger organizational improvement project, Percipio was engaged to conduct a supplier risk assessment and identify ways to mitigate risks at critical suppliers.
Challenges
  • Identified critical suppliers
  • Assessed criteria that contribute to supplier risks and analyzed root causes associated with the risk
  • Defined and implemented mitigation measures at identified suppliers
  • Supported ongoing supplier development programs
Services
  • Risk Advisory
  • Strategy & Execution
  • Technology Leadership
Solutions

Percipio applied a proprietary, holistic risk-assessment model that evaluates supplier risk beyond traditional quality and delivery metrics. Through a combination of interviews and online surveys, we assessed risk across six dimensions—relationship, performance, human resources, supply chain disruption, financial health, and environmental factors—while also evaluating potential revenue impact beyond typical spend-based measures. This approach enabled Percipio to quantify the revenue exposure associated with supplier disruptions.

We presented the assessment results and then identified and analyzed critical suppliers in greater depth. Percipio facilitated collaborative workshops with the client and its suppliers, incorporating root-cause analysis using Ishikawa (fishbone) diagrams. These sessions produced clear, actionable mitigation plans to address risks and resolve issues.

As a result, the client was able to make more informed decisions regarding supplier development and supply base optimization. Targeted mitigation actions at critical suppliers improved performance and reduced future risk. In addition, Percipio developed a training manual that accelerated adoption of this approach across other business units, enabling rapid and sustained realization of benefits.

“If I had known what Percipio was capable of, I would have hired them sooner.”

Director, Supply and Logistics

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