Comprehensive Supplier Risk Modeling

In a recent survey, executives identified the sources of risk they were most concerned about as “supplier failure”.

Supplier risk management has now become imperative. Executives are becoming increasingly aware of the risk these supply chain disruptions pose to their bottom lines, brand reputation, and stock value. IHS can help you prepare for and respond quickly to supply chain disruption – from everyday risks of doing business, to navigating dangerous supply chain floodwaters.

Let us help you understand your supply chain health. IHS brings a unique capability to supplier risk modeling. Leveraging expertise across content groups, we are specially qualified to provide insights on future risks of individual suppliers. Our insights are built on a foundation of economic forecasting, industry expertise, and company level detail.

We go beyond financial measures to also rate company performance, industry context, and production strength.

Supplier Risk Content: Map View

Solution Overview
IHS provides supplier risk ratings to help you better understand and manage supplier risk. These tools help users identify risks associated with suppliers ever-present in their daily operations. In addition, this tool allows for quick response to world events that might have a disruptive impact on supply chains. The IHS company risk rating system allows users to assign their supplier pool an aggregate rating, based on risk levels of their key suppliers.

Evaluate Quotes & Review Individual Suppliers:

• How risky is your supplier base?
• Do you know where the weak links are in your supply?
• What companies in your supplier base are at risk of failure?

IHS Connect Supply Chain workbench

Case Example – Thailand Flooding: 14,000 Factories Flooded
In the fall of 2011 some of the most destructive flooding in decades hit Thailand, severely damaging seven of the country’s most important industrial manufacturing parks.

Approximately 30%-40% of HDD component production and system assembly is located in Thailand. More than 25% of the worldwide HDD assembly production was located in Thailand’s flooded area.

Assessment of HDD damage:
In assessing the damage, IHS estimated ~20% of the media and substrate manufacturing was impacted by the flooding; one-third of head manufacturing, mostly from Western Digital has been directly impacted by the flooding; more than one-third of motor manufacturing has been impacted by the flooding; more than onethird of suspension production has been impacted by the flooding.

In situations like this, by immediately identifying the commodities and suppliers at risk, the client was enabled to immediately zoom in on critical components and identify cash on the balance sheet to immediately accumulate what became highly-constrained materials and avert supply discontinuities for several millions in revenue.

• What if you could have immediately quantified the impact on your suppliers?
• Do you know what the impact of tomorrow’s disaster might be?