Systems and methods to quantify risk associated with suppliers or geographic locations

Abstract

Computer-implemented systems and methods to quantify risk associated with suppliers or geographic locations at which suppliers or global internal delivery centers are located. The systems and methods transform risk parameter data into risk metrics that allow comparison of relative risk between suppliers, supplier sites, or geographic locations, and allow comparison of risk metrics to minimum risk scores calculated for a given metric. The systems and methods further provide guidance / proposed action to take based on the generated risk metrics.

Description

I. BACKGROUND[0001]The present invention is directed to computer-implemented systems and methods for transforming data into risk metrics to quantify the risk associated with a particular supplier or suppliers, or the potential risk associated with a geographic location at which a supplier or global internal delivery center is located.[0002]Risk assessment and management is essential for success of a wide variety of endeavors, including individual and organizational activities. An organization may face risk in many forms, including client risks, competitor risks, supplier risks, legal risks, technological risks, political risks, and environmental risks. Properly identifying, understanding and evaluating risks can allow an organization to prepare for and respond to events beyond its control.[0003]For example, a company that offers goods for sale may purchase component parts for its goods from one or more suppliers. When selecting a supplier, companies typically look to more than just ...

AI Technical Summary

Benefits of technology

The invention provides a method to convert data from various sources into quantified measures of risk, which can help organizations assess the risks associated with purchasing goods or services from a particular location. This allows organizations to make informed decisions and mitigate risks associated with suppliers or opportunities brought about by changes in location or supplier risks. The system also allows for adjusting the weights assigned to different risk categories or sub-categories to better calculate risk metrics.

Problems solved by technology

An organization may face risk in many forms, including client risks, competitor risks, supplier risks, legal risks, technological risks, political risks, and environmental risks.

A disruption in the supply chain may reduce the capability of a company to provide its goods and services, thereby reducing its sales and revenue.

A disruption in the supply chain may also cause the company to breach contracts it has entered to sell its goods and service to customers, thereby subjecting the company to legal liability.

A disruption in supply can therefore have severe consequences for a company.

A supplier may face disruptions in its business for reasons directly relating to the operations and business decisions of the supplier, or for reasons wholly beyond the supplier's control.

For example, a supplier that does not invest in training and development for its work force may face a high attrition rate and a shortage of labor.

In a third example, a viable and successful company can face disruptions because of location-based events beyond its control such as natural disasters, geo-political events, or changes in laws.

Any disruption in supply from the third-party supplier may cause disruptions further along the supply chain.

However, risks associated with suppliers have been difficult to quantify.

Consequently, acquiring a comprehensive understanding of the risks face by companies can be challenging.

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