As supply chains grow more complex, so do the risks in procurement, especially when visibility is blurred across multiple tiers of a supply chain. Today, most organizations rarely hold ownership of their supply chains beyond tier 1. They select tier 1 contractors who in turn induct tier 2 or tier 3 subcontractors forming an entire value chain. In most cases, failure of one subcontractor results in a cascading impact causing disruptions across the supply chain.
It’s important to understand that with each subsequent tier of subcontractors, operations and associated responsibilities tend to move farther away from the hiring organization. In such circumstances, it can be difficult for a company to gauge the potential risks arising from its tier 2 and 3 subcontractors, let alone mitigate them.
This white paper will discuss: