Supplier risk management

Identify, evaluate and act on supplier risks

Global supply chain increases the complexity of supplier networks. Global events, such as Russia's sanctions against the European Union, Brexit, the Suez Canal blockade, demonstrate the strong impact on supply chains. In the Corona pandemic, the strong dependency in supplier networks is even more evident, as supply shortages are perceived in many sectors, such as the semiconductor industry.

The challenge lies in continuously evaluating and taking proactive action in response to the changing framework contracts. Therefore, risk-oriented supplier management plays a central role for companies. It supports in identifying risks at an early stage, averted reputational damage, and maintain security of supplies.

Current focus on the supply chain law

One new requirement for companies now is the Act on Corporate Due Diligence Obligations for the Prevention of Human Rights Violations in Supply Chains (LkSG). The law, which has been in force on a voluntary basis since 2016, to monitor the supply chains to direct and indirect suppliers for violations of human rights and environmental protection, has now become a mandatory requirement.

On June 25, 2021, the Federal Council of Germany has approved the enforcement of LkSG which will be effective from beginning of 2023. This Act will affect a large number of German companies and their suppliers.

Supplier risk management

In a three-stage process model, we support companies, for example, in responding to this framework condition. We introduce the topic and support the implementation of measures.

Our approach

The focus is on linking supplier and risk management. To achieve this, we take a holistic view of suppliers and risks. Thanks to our many years of experience in supplier management, we know the challenges and requirements in the market. At the same time, we are aware of the risks along the global supply chains, therefore we can offer the optimal interlinking of the two areas.

A central task of risk-oriented supplier management is to bring transparency to the supplier structure to identify and prevent risks in the supply chains as quickly as possible. In addition, establishing a trustworthy working relationship with suppliers is valuable.

At the same time, we help our customers comply with internal and external requirements in the value chain. This includes strategic and operational support services, such as the implementation and monitoring of derived measures. In the long term, this is intended to ensure security of supply in the company, increased efficiency in processes, and sustainable action.

Digitale tools

We know the market of software providers in the areas of supplier and risk management. The choice of possible tools is huge and should be thought through before you decide on a provider.

We support you in finding the best fitting provider in supplier and risk management. Often, solutions are already in use that only cover parts of the necessary requirements. The combination of supplier and risk management offers the advantage that purchasing can secure business operations through increased transparency and stability.

Supplier risk management

Source: STÖHR FAKTOR research (10/2021); represents an excerpt of software providers.


Your benefits

  • Holistic view of the supply chains
  • As-is analysis of material group and supplier management
  • Improved transparency in purchasing processes and supplier network
  • Proactive risk mitigation in the supply chain
  • Reduction of delivery failures and securing of delivery readiness
  • Stronger communication and integration of relevant suppliers
  • Driving sustainable supply chains
  • Compliance with the legal requirements of the LkSG
  • Measures to reduce costs due to supply shortages and non-compliance with legal obligations


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STÖHR FAKTOR Unternehmensberatung GmbH
Düsselstraße 4a | D-40699 Erkrath
Fon: +49 (211) 977 19 600
Fax: +49 (211) 977 19 520
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