If perhaps until now, many Purchasing areas devoted enormous efforts to ensuring parameters such as price, delivery and quality, leaving risk coverage in the background, today the paradigm has changed, giving absolute and top priority to risk management, without which, we have been able to verify that price, delivery and quality can suffer significant changes.
We at Mirihi do not want to publish this article on risk and its management, once again referring to the situation caused by the global pandemic that we are suffering, but we cannot forget that it is precisely this situation that has opened the eyes of many organizations. , putting precise risk management at the center of their debate and, therefore, giving priority and resources to said management. At this point, the Purchasing departments should already have taken a strategic position in managing the risk associated with the provision of goods and services by supplier companies. If perhaps until now, many Purchasing areas devoted enormous efforts to ensuring parameters such as price, delivery and quality, leaving risk coverage in the background, today the paradigm has changed, giving absolute and top priority to risk management, without which, we have been able to verify that price, delivery and quality can suffer significant changes.
Digitization and Sustainability
Risk coverage and good risk management is directly related to the continuity of the business, and, therefore, to its adaptation to the new situations to which digitization and sustainability inevitably lead us. Both elements, digitization and sustainability, should be taken into account by companies and companies as parts of a whole, comprehensive risk management. If we are not able to come up with clear mitigation plans, so that the future is not compromised, we will leave our businesses at the risk of adversity and improvisation.
Both elements, digitization and sustainability, require a balance between what, until now, has been globalization and local production. And this is a clear example of what countries like China have already begun to implement, as we observed in the article that appeared in El Economista. We are facing a clear global example of risk reduction in the supply of different goods with high added value, aggravated by the increase in uncertainty in relations between countries and the global health crisis that we are experiencing.
Part of Mirihi’s comprehensive Purchasing and Supply Chain management model contemplates Risk management and coverage as the axis on which the rest of Purchasing disciplines pivot, such as Category Management or Supplier Relationship Management, and which guarantee the parameters of quality, cost and service.
For this reason, a new management model, in general with respect to risk coverage, and in particular in aspects related to supply, quality and associated costs, is essential in organizations and in their Purchasing areas. These objectives today need two fundamental levers or tools to be achievable: innovation and digitization, with the ultimate challenge of having sustainable organizations and business models.
After more than a century we are facing a new pandemic situation and with it, the effective management and coverage of Risk has become a ‘must’ in all organizations. The existing threat to the planet due to climatic issues is already evident, so only sustainability as a real weapon to avoid this risk will be able to guarantee the health and well-being that we have known up to now.
