How can I identify the financial risk of my suppliers? Follow

LevaData Platform's Risk feature can identify and assess the financial risk of your suppliers. This helps you to identify high risk financial suppliers and either review the information with the supplier, look for alternate suppliers, or take any other necessary actions to mitigate risk from your perspective.

• Watch: Supplier Financial Risk Use Case (2:29)

Identify Supplier Financial Risk

(1) Navigate to Risk, then (2) Open the controls and (3) input value(s) for Commodity if you want to discretely look at certain commodity areas, for this example we have selected Mechanicals. If you a Global Commodity Manager (GCM) you will only want to look at the commodity you manage, if you are an administrative user, you may want to look at multiple commodity areas across several GCMs.

Next (4) pick options under Financial Default Risk, as in this case we want to see which suppliers may have financial risks in the High and Very High categories. Finally, you can (5) select the upward arrow in the upper right to close the controls filters and proceed with reviewing the charts and tables below.

Once you have your filters set and minimized, you can (1) scroll down to the table "Manufacturer Risk Factors" and see (2) a color-coded indication of Risk and Financial Rating for specific suppliers, as well as how much impact they have on your production with financial categories like (3) Single Source Spend (depicted below) as well as Filtered Spend and Product Sales Impact (not depicted, further to the right on the table).

Our example has only returned one supplier, but if you have numerous suppliers with financial risks in your query, then you can (4) use the controls in the upper right of the table to expand (via the arrows) to make the table full size, or export to Excel Workbook with the three-dot menu if you would prefer to manipulate the data there.

You can also click into the supplier in the LD Manufacturer column and the platform will filter all available charts down to that supplier, in this example I have clicked on it and then scrolled up to view associated parts from this supplier:

Here we can see two very high risk CPNs and what we spend on them, and a good inference from looking at this data is that this is a single-source risk and also a financial health risk, so we should try to secure alternate suppliers to mitigate this risk in our production.