Procurement Magazine December 2025 Issue 47 December 2025 | Page 108

RISK & RESILIENCE
KEY RISK MONITORING DIMENSIONS
Always-on risk agents monitor across multiple fronts Digital procurement platforms now deploy dedicated AI agents that continuously monitor individual suppliers and their multi-tiered subsuppliers across critical dimensions:
Financial performance: Credit alerts, credit rating downgrades, cash-flow signals
Quality and Delivery: On-time in-full( OTIF) performance, return rates, defect rates, warranty claims, customer feedback
Compliance and ESG: Attestations, sanctions checks, conflicts of interest, insurance expiry dates
Market dynamics: Commodity price movements, foreign exchange fluctuations, cost volatility
Macro disruptions: Geopolitical tensions, natural disasters, port closures, shipping delays, regional instability
Rather than manual periodic reviews, these agents operate continuously, alerting procurement teams instantly when risks emerge and recommending mitigation options within operational constraints.
Building resilience through data visibility Resilience fundamentally depends on understanding your supply ecosystem comprehensively. Yet data fragmentation remains one of procurement’ s most significant challenges. Supplier and spend records typically scatter across multiple enterprise resource planning systems and regional operations, often with inconsistent naming conventions and taxonomies. The result is a fragmented view that masks vulnerabilities and prevents effective resilience planning.
GP identifies this as a critical barrier:“ Data fragmentation is procurement’ s Achilles’ heel. Supplier and spend records sit across multiple ERPs and regions with inconsistent names and taxonomies. The result: duplicates, blind spots and insights you can’ t trust.”
Addressing this fragmentation requires sophisticated data integration and artificial intelligence-driven data mastering. By reconciling supplier records against trusted external sources and standardising spend categories through natural language processing, organisations can establish a single, governed source of truth about their supply ecosystem. This data foundation transforms resilience planning. When organisations truly understand their complete supplier network – including sub-suppliers, dependencies and concentration risks – they can identify vulnerabilities that would otherwise remain hidden. They can analyse whether their supplier base has geographic concentration that creates vulnerability to regional disruptions.
108 December 2025