How to Monitor Risk Management in Procurement
When working with a multitude of manufacturers and suppliers during the procurement of medical products, it’s key to know how to monitor risk management. Avoiding any sort of disruption keeps Unimed in the all-clear with our services. Here’s a breakdown of the steps we take for knowing how to monitor risk management:
Identify Risks - Why is Risk Monitoring Important?
Not only does our team know how to face risks, but it’s crucial to know why risk monitoring is important. Avoidance of all product delivery disruptions and supply vulnerabilities is a must, as we aim to be reliable and committed to the smooth procurement process we promise to our clients. However, sometimes situations such as global transport difficulties or supply shortages may occur, which is why we always have to plan ahead as a business. Preparation is key with medical procurement, as medicines and healthcare products need to be moved fast.
To identify risks, reviewing and amending current services is at the heart of the process. Reflecting on contractual agreements, maintaining price management and setting out a step-by-step procurement plan are a few of the many aspects to be considered when monitoring any gaps in the process.
Once the possible risks have been identified, they need to be analysed too. This means breaking the risk down so that we can assess how it can be dealt with. An example of this would be supplier performance. When working with a client, expectations of quality products are set in place when a contract is signed. Supplier evaluation is based on KPIs throughout the procurement industry. Therefore, down the line, it’s unacceptable to be impacted by poor supplier performance. Unimed’s OTIF score is usually around 99%, which means our manufacturers need to be at 95% at least.
During risk analysis, set guidelines and rules are in place for what’s expected from suppliers. They play a huge part in the overall procurement puzzle piece, which is why we set terms with all of our suppliers and manufacturers. We expect an irreplaceable level of standard, which is what we give our partners in return for their commitment.
The next step on how to monitor risk management in procurement is ranking their importance. The bigger the risk on the supply chain, the bigger the impact it’ll have on the business being strategically prepared. This ranges from financial risks, legal risks, operational risks, ethical risks in procurement and more.
Ethical risks in procurement can lead to reputational damage and a lack of trust from clients. Ethical risks range from using illegal or harmful materials within medical products and equipment, dismissing all encouraged sustainability practices, and procuring products illegally. Strong ethics and values boost our passion for top quality procurement, which are supported by our Standard Operating Procedures (SOPs) and company policies. With having Unimed centres across the globe, we must understand and value The Social Value Act. We would never, under any circumstances, become involved with modern-day slavery and child labour.
As we work with trusted, long-term manufacturers and suppliers, all those involved with Unimed’s procurement services know that the supply and demand of products can fit any incoterms of a client, whilst considering sustainability factors and ethics throughout the chain process.
By tracking risks, they’re constantly being assessed and monitored to ensure that mitigation is still relevant at the time. When a company evolves or deteriorates, risks will mould and shape into different scenarios. Each client has a completely unique and personal order of procurement services, which means that risks need to be tracked across all situations. To track them, Unimed keeps clear documentation, communication and expectations at all times. This is so we can reflect on whether risks are being maintained properly, and how we can adapt the technique if anything occurs.
Monitor Global Situations
With over 23 countries supplied to, Unimed consistently monitors global situations to be prepared for any risks. As economies experience different highs and lows each day, as well as medical needs and transport news, different risks become apparent depending on worldwide situations. Being able to adapt to global markets puts our business in a prime, accessible position to support health care in the farthest of countries.
Monitoring risk management in procurement will always be a priority to maintain the highest standard of services.