STRATEGIC SUPPLY CHAIN

ON AVERAGE

of suppliers in Fortune 1000 supply chains are private companies

John believes that , in 2025 , it will be critical for companies to manage any downside risks in their supply chains while seizing opportunities to grow with strong suppliers .

“ These global uncertainties , coupled with increasing regulatory pressures , make it crucial to have real-time insights into supplier risks to prevent potential disruptions and safeguard business continuity ,” he adds .

Assessing a private company ’ s financial health is more challenging due to limited visibility and lack of public financial reporting . RapidRatings fills this void by providing visibility into private company financials alongside public company assessments . This distinction is critical as most Fortune 1000 companies ’ supply chains are 75 % private companies , says John .

How does RapidRatings do this ? John explains : “ Obtaining financial statements from private companies has always

been tricky . However , for over a decade , RapidRatings has sourced financial data directly from private company suppliers on our clients ’ behalf . At this point , we have rated tens of thousands of private companies from more than 140 countries .”

RapidRatings uses its proprietary FHR modelling that quantitatively analyses financial statements to evaluate supplier risk . Each rated company is evaluated on 73 ratios that are scored based on the historical importance of that ratio in a company ’ s development over the past 40 years and across 12 million companyyears ’ worth of data . This is done on an industry-specific basis across 24 industry models . So , while the FHR is produced on a straightforward 1-100 scale , the algorithms behind it are incredibly sophisticated .

Obtaining such information presents a range of challenges . Gaining comprehensive visibility is complex ,

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