TYS Lunch & Learn Episode 2- Mitigating Financial Risk to Unlock Added Value: Insights from Procurement Experts

In today’s fast-paced business environment, companies face numerous challenges in managing financial risk effectively while unlocking added value from their procurement processes. To gain valuable insights into this critical area, we turn to procurement experts Stephen Brandt & Chad Hill from Trust Your Supplier (TYS), and Eric Evans from RapidRatings, who share their wealth of experience and knowledge in the field. 

Stephen Brandt, a value engineer at Trust Your Supplier, emphasizes the importance of understanding regulatory goals and compliance risks in procurement. With 15 years of experience in the industry, Stephen highlights the need to uncover value while mitigating financial risks effectively. 

Chad Hill, the Chief Revenue Officer at Trust Your Supplier, underscores the significance of leveraging technology to enhance supply chain management. With over 17 years of experience in procurement technology, Chad emphasizes the importance of collaboration and amplifying the mission of delivering value to the market. 

Eric Evans, a seasoned expert with 20 years of experience in data risk and compliance, provides valuable insights into the role of predictive analytics in managing financial risk. As a partner at Rapid Ratings, Eric discusses the impact of rising interest rates and leveraged debt on companies, particularly in the wake of the COVID-19 pandemic. 

One of the key challenges highlighted by Eric is the need to assess the financial health of critical relationships within the supply chain. By segmenting companies based on their criticality and leveraging predictive analytics, organizations can gain deeper insights into potential risks and opportunities. 

Furthermore, Eric emphasizes the importance of continuous monitoring and due diligence in supplier onboarding processes. With the help of platforms like Trust Your Supplier, organizations can customize their monitoring strategies to align with their specific needs and priorities. 

Chad echoes the importance of resilience in today’s business landscape, emphasizing the interconnected nature of financial, operational, and environmental risks. By leveraging technology and expert insights, organizations can better anticipate and mitigate potential risks, ensuring long-term sustainability and growth. 

In conclusion, mitigating financial risk in procurement requires a holistic approach that integrates technology, expertise, and strategic partnerships. By leveraging predictive analytics, continuous monitoring, and customized solutions, organizations can unlock added value while safeguarding against potential risks, ensuring resilience and success in today’s dynamic business environment. 

Trust Your Supplier (TYS) is a Small, Minority, and Woman-owned business with a global reach offering an innovative blockchain-based solution for supplier and risk management to large and mid-size enterprises. By harnessing the immutability of the blockchain, TYS ensures daily monitoring, and historical, predictive, and prescriptive risk insights, enabling trusted data exchange and workflow automation beyond traditional boundaries. This distributed ledger technology fosters transparency, efficiency, and empowerment for businesses to manage suppliers and mitigate risks effectively. 

TYS Lunch & Learn Episode 1- Navigating Supply Chain Risks: Insights from Trust Your Supplier’s Nick Picone

In the ever-evolving landscape of procurement, understanding and mitigating risks have become paramount for businesses seeking sustained success. In the inaugural episode of “TYS Lunch & Learn,” hosted by Fatima Lacanlale, Nick Picone, VP of Advisory Practice at Trust Your Supplier, sheds light on critical aspects of digital transformation, supply chain dynamics, and the future of how to mitigate risk in procurement. 

Unlocking the World of Risks:
Nick, a seasoned professional with nearly two decades of experience in the business software industry, delves into the intricacies of supplier risks, particularly focusing on financial vulnerabilities. With companies facing historic acceleration in interest rates, small and medium-tier suppliers are grappling with financial stress. The result? A significant increase in bankruptcies, posing a substantial threat to supply chain continuity. 

Nick emphasizes the need for organizations to grasp the impending challenges, with $4 trillion of debt expected to roll over at much higher rates in the next four years. Small and medium-tier suppliers, often crucial to a company’s operations, are likely to bear the brunt. To address this, businesses must act swiftly, collaborating with suppliers to mitigate risks or exploring alternative sourcing strategies. 

The Power of Visibility and Clean Data:
A recurring theme in the conversation is the importance of visibility and clean data. Nick asserts that clean, segmented data forms the foundation for achieving comprehensive visibility across the supplier base. The ability to augment this data with real-time insights from third parties and take actionable steps is essential.  

Trust Your Supplier (TYS) emerges as a solution that empowers businesses with the agility to navigate these challenges, offering a single, unified platform for data security, governance, and risk management. 

Actionable Steps for a Resilient Future:
Nick provides actionable steps for businesses looking to enhance their visibility and mitigate risks. The key lies in intellectual curiosity and collaboration. Leadership within organizations must engage in internal dialogues and collaborate with external providers like TYS to understand and solve the complex problems associated with procurement risks. The adoption of modern technology, including blockchain platforms, is pivotal in achieving control over data, fostering trust, and ensuring transparency—an approach that Trust Your Supplier advocates. 

In conclusion, this episode underscores the critical need for businesses to proactively address risks in their supply chain. By leveraging technology, fostering collaboration, and staying intellectually curious, organizations can not only navigate the challenges posed by financial uncertainties but also build a resilient supply chain that stands the test of time. Stay tuned for more insights and expert discussions in future episodes of ” Lunch & Learns.”