Santa Clara, Calif. – Resilinc, a provider of supply chain resiliency solutions, and KPMG LLP, the U.S. audit, tax and advisory firm, have formed an alliance to help clients change their approach to supply chain risk management. A recent study conducted by Resilinc indicates that many large organizations are not aware of the risks involved with sub-tier suppliers, which means they are not prepared to mitigate those risks.
To help clients gain better visibility into potential multi-tier supply chain risks, KPMG will leverage Resilinc SupplyIntel, a central repository for collecting, managing, and refreshing global multi-tier supplier visibility information, and Resilinc EventWatch, a solution that monitors global supply chain disruptions, ranging from natural and man-made disasters, to labor and transportation strikes, to bankruptcies.
This increased visibility can help drive improved strategic decision-making by identifying critical vulnerabilities, monitoring global external events for potential disruptions, and aid in cost effectively mitigating identified risks, said Resilinc.
“Most leading companies are working to transform their procurement and global supply chain functions to deliver greater value to their businesses while reducing the risks and costs of supply disruptions,” said Jon Bovit, chief marketing officer, Resilinc, in a statement. “By combining KPMG’s suite of services with Resilinc’s innovative applications and data, we can jointly help clients achieve a more strategic, business-driven approach to protect the continuity of supply and achieve sustained operational performance by providing executives with the timely information they need.”
Supply-chain disruptions can be significant. If there are disruptions in certain localities or at certain sub-tier suppliers the disruption can delay shipment by weeks or result in component allocations. One recent example is the Hynix factory fire that impacted PC DRAM production at its Wuxi, China plant, resulting in allocation situations and increased pricing.
Resilinc typically recommends that organizations speed up the rate at which they map the supply chain in the sub-tiers and understand the dependency by part level. Once this is accomplished, organizations can quantify and assess those high risk areas to develop risk mitigation plans. The company believes by proactively monitoring disruption events organizations can avoid big revenue and cost increases, and in some cases, risk to their brand.
“Without exception, a top concern of the senior executives we work with is supply chain resilience. It has become a critical imperative of the C-suite and their Boards of Directors,” said Kevin O’Laughlin, Principal, Supply Chain and Operations advisory services, KPMG LLP, in a statement.
“Executives in many industries have seen the impact that supply chain disruptions can cause, and are seeking comprehensive and innovative ways to address supply chain risk. The combined capabilities of Resilinc and KPMG create a clear choice when looking for a strategic partner in supply chain risk management. Our full suite of supply chain resilience offerings provides an end-to-end solution addressing the full range of threats and risks across the extended supply chain,” he further stated.