Unravelling the Strategies for Companies to Utilize Supplier Tiers and Enhance Vendor Insights

Unravelling the Strategies for Companies to Utilize Supplier Tiers and Enhance Vendor Insights

Companies can significantly improve their supply chain operations and resilience by leveraging supplier tiers. This approach, when combined with supply chain mapping, offers valuable insights into sourcing, vulnerabilities, and opportunities for enhancement.

The importance of supplier tiering and mapping became evident during the COVID-19 pandemic when the lack of essential data and a disjointed response exacerbated economic impacts. Abe Eshkenazi, CEO of the Association for Supply Chain Management, emphasized that organizations with pre-crisis network mapping had better visibility into their supply chains.

Once suppliers are effectively mapped, businesses gain the tools needed to bolster supply chain resilience. Supplier tiers help visualize the impact of suppliers, revealing critical insights such as emissions generation, vulnerability to external threats, and cost contributors.

Armed with this knowledge, companies can take proactive steps to address vulnerabilities within their supply chains. These actions may involve engaging with suppliers to address concerns or soliciting feedback to refine supplier governance programs. Supplier mapping and tiering also prove invaluable during disruptions requiring swift responses.

To further support their efforts, businesses can seek assistance from initiatives and organizations like the Partnership for Carbon Transparency (PACT). PACT is dedicated to expediting decarbonization and enhancing emissions transparency by providing methodological guidelines, facilitating data exchange, and fostering collaboration among stakeholders.

Visibility through supplier tiering serves as the foundation for understanding suppliers' overall impact on a company, particularly in terms of carbon footprint.

"Join Us in Our Upcoming Blog as We Explore the Significance of Supplier Visibility in Shaping a Company's Carbon Footprint."