Market Guide for Supplier Risk Management Solutions
Published 16 May 2022
By Koray Kose, Cian Curtin
“Supplier risk management is a key competitive advantage. Enhanced risk management enables sourcing and procurement professionals to impact a company’s continued success from product development, implementation to phase out. Ability to create resilience and tackle predictable and unpredictable shocks, changes in legislation, managing supplier performance, logistics and financial risks, ESG and CSR, cybersecurity and capacity fluctuations is critical.
Technology is a key enabler for success in managing complex, comprehensive and time-sensitive data. Supplier risk is best managed by complementing a sourcing suite with best-of-breed technology that integrates well and can tackle (un-)structured, fluid data in fast- paced and fragile environments. Investments into risk management have increased by 30% (based on % on direct material spend) from 2021 to 2022.¹”
We believe that one key reason for the report is that the supplier risk software market is highly fragmented, leaving companies with almost too many options. Risk management can be viewed differently by different people. In our opinion, this analysis suggests that an evaluation based on the following factors illustrates the potential need for multiple solutions to address a company’s risk management program.
In this report, Gartner® outlines the market direction and analysis with representative vendors to help your company define a supplier risk management strategy. Gain instant complimentary access by filling out the form.
¹ Gartner Supply Chain Risk and Resilience Survey. This survey was conducted to understand companies’ current capabilities for supply chain risk management, where improvements are most needed, and where they are investing in processes, resources and technologies for the future. The research was conducted online 19 July through 3 September 2021, among 83 respondents in Germany and 6 in other countries. Gartner partnered with BME to recruit the participants. The sample was augmented with recruitment efforts through social media. Qualifying organizations operate in the manufacturing, healthcare, natural resources, retail, transportation and logistics, utilities, and wholesale trade industries. Qualified participants have a role tied to a supply chain function. The survey was developed collaboratively by a team of Gartner analysts and BME leadership and was reviewed, tested and administered by Gartner’s Research Data and Analytics team. Disclaimer: Results of this study do not represent global findings or the market as a whole but reflect the sentiment of the respondents and companies surveyed.
¹ The Gartner supply chain research team conducted the 2021 Gartner Supply Chain Signature Series Risk Survey to study the various approaches that supply chains take to mitigate risk. From August 2020 to March 2021, the research team conducted more than 70 interviews with CSCOs from large and midsize enterprises. Additionally, throughout December 2020, the research team sent out invitations to complete an online survey to a wide group of heads of supply chain globally. We received 262 completed responses during the survey period and analyzed the data, using a wide range of statistical procedures (e.g., simple t-tests, multiple regression analysis, and factor and cluster analyses). Gartner, Market Guide for Supplier Risk Management Solutions, William McNeil, Koray Kose, 17 November 2020 Gartner does not endorse any vendor, product or service depicted in its research publications, and does not advise technology users to select only those vendors with the highest ratings or other designation. Gartner research publications consist of the opinions of Gartner's research organization and should not be construed as statements of fact. Gartner disclaims all warranties, expressed or implied, with respect to this research, including any warranties of merchantability or fitness for a particular purpose. GARTNER is a registered trademark and service mark of Gartner, Inc. and/or its affiliates in the U.S. and internationally and is used herein with permission. All rights reserved.