Proactive Risk Assessment: Product Risk Follow

Supply Risk Navigator is an Insights-to-Action component in the LevaData platform which enables a Business Continuity Manager to protect margins and revenue by facilitating both proactive and reactive risk monitoring, risk impact assessment, and risk mitigation and response. We refer to proactive monitoring as it pertains to the evaluation of structural risks in the supply chain, while reactive monitoring and evaluation facilitates assessment and response in the event of a crisis. The Proactive Risk Assessment module of Supply Risk Navigator handles both of these functions.

Product Risk

When a user selects Proactive Risk Assessment on the left-hand navigation menu, they land on the first tab of the Proactive Risk Assessment module which is Portfolio Risk and the first sub-tab which is Product Risk. This area of the platform seeks to provide Product Managers everything needed to address portfolio risk analysis and risk mitigation actions associated with their products and product families.

To better understand the navigation and rules of Portfolio Risk, please see:

• Proactive Risk Assessment: Portfolio Risk

Product Risk Dashboards

Product Family Risk and Product Risk

These dashboards include all associated product family information for the items filtered in controls. For example, if the user selects commodity: semiconductors and subcommodity: discrete semi, the focused details of the product family risks will appear. The filtered spend and product sales impact will tell the user what degree of cost and revenue impact the risks have towards the product family.

Users can examine the unique product ID level to see risk profile by count for each of their products, and examine the risks, # of Customer Part Numbers (CPNs), and similar spend and sales data.

Any dashboard that appears too narrow on your display can be expanded by selecting the dashboard and the expanding arrows. This allows you to more closely examine detailed financial comparisons for your products if you have product IDs with larger character counts.

We provide these summarized views to inform the user which of their products are at risk. The product family and commodity information have an interplay together because commodity managers know what products they are working on, and which are their high-risk products. Being able to source detailed information about which products could be affected by the risk decisions they have to make is important.

Filtering on Multiple Levels Simultaneously

When trying to cross-examine Product Risk on a Product Family to Product to Part level, the best way to understand this report is three distinct rows: (1) Product Family, (2) Product, and (3) CPN. Each of those horizontal subsets of the report align with each other. 

If you click into just (1) product family then go down to (3) CPN Risks, you may have an issue where a part is counted multiple times across multiple products.  So you should make sure to also select a (2) Product to narrow down parts in that unique product.

Selecting product after product families enforces a distinct count, which then allows you to see the matching total of CPNs at risk, the same amount as in the preceding two tables.

Customer Part Number (CPN) Risks

Users will want to examine part risks for their products and product families. In the previous product family example, a product manager may want to examine the product family with the fewest remaining part risks to eliminate or find alternates for the remainder. Looking at our product families in this example set, we can click into "Everest" which has 20 (or 7% of) parts at risk.

Looking at the CPN Risk Profile, we're able to validate the same number (20) of at risk CPNs (High or Very High Risk). The CPN Spend can be expanded like done in the previous example. 

Expanding the table for Top Risks: CPN, the first line item indicates very high risk (by default the table is sorted by risk calculation) and in this scenario the sourcing strategy is not addressing this risk well. The example indicates a single-source CPN that will take two months to requalify with no existing inventory. Users may want to sort on "filtered spend" as it is a combination of risk and impact being considered.

CPN Risk Calculation and Aggregation

(1) Total CPN Risk is a function of overall (2) "Aggregated MPN Risk" and (3) "Sourcing Strategy Risk", and all are explicitly identified in the table, and explained in more detail below this image.

(2) Aggregated MPN Risk indicates the total risk for the currently qualified MPNs and effectively reflects the health/risk of the aggregated MPN pool associated with the CPN.

• Aggregated MPN risk aggregates individual MPN EOL, Lead Time, and Manufacturer.
• e.g. if there are two MPNs associated with a CPN/Manufacturer and one MPN is near EOL, while the second (replacement) MPN has extended life (long EOL), the "Aggregated MPN" risk conferred from EOL will remain low.
• Users can drill into individual MPN details by selecting the CPN, then viewing the MPN table below:

  

(3) Sourcing Strategy risk is a function of the number of (manufacturer) sources for a given CPN, the Inventory Strategy, and the time-to-requalify a new/replacement part.

(4) Individual "raw" CPN risk factors - # Sources for CPN, Time to Requalify, Strategic Inventory (VMI) - as well as the (5) Spend and Sales Impact factors - Filtered Spend and Product Sales Impact - are all referenced in the table.

Manufacturer Part Number (MPN) Risks

The MPN Risk Factors table is centrally sorted by MPN Risk which factors items to the right of the table including Years to End of Life (YTEOL), lead time, manufacturer risk, etc.

CPN Supply Risk is also indicated next to the MPN Risk to help inform the user that they could have a sourcing issue with the associated part. If the MPN Risk is very high but the CPN Supply Risk is very low, that often indicates a replacement part with that same supplier has been identified.

Impacted Sites

Scrolling further to the right in the MPN Risk Factors Table, users can see all of the sourcing factors mentioned above, but they can also see if the manufacturing sites for an MPN are potentially impacted by a negative event.

• The indicator is "Yes" if any of the possible manufacturing sites are potentially impacted.
• The indicator is "No" if none of the possible manufacturing sites are potentially impacted.
• The indicator is left blank if there is no information about Country of Origin (COO) or MPN manufacturing site for the MPN.

Note: If Part-Site maps are not available, COO is used as a proxy and all known manufacturer sites in that country are used as potential manufacturing sites.

Manufacturer Risks

This section provides yet more detail on the manufacturer which feeds the MPN by understanding risk level, financial rating, and internal information (if provided) on delivery and quality. The user can review the manufacturer's status on additional risk factors like the quantity of single source spend and single source parts, with filtered spend and product sales impact.

Manufacturer Score Card

Users can review an individual manufacturer in detailed by left clicking into their name or any element on their data row and then right clicking the "MFR Score Card" prompt. Let's take Future Electronics for example.

After selecting the prompt, the full Manufacturer Score Card will load, indicating metrics for Financial Health, Performance Rating, Spend & Savings Trends, and Insights for future negotiations with that manufacturer.

For more information on Partner Score Cards for Manufacturers and Suppliers, please see:

• Market Intelligence - Partner Score Card

This concludes the overview on the Product Risk dashboards in Proactive Risk Assessment.

For articles on the other Risk sub-tabs, please see:

• Proactive Risk Assessment: Commodity Risk
• Proactive Risk Assessment: Manufacturer Risk
• Proactive Risk Assessment: Geographic Concentration Risk