There is a significant amount of supplier-related risks that have to be taken into consideration. These risks types include:
The big picture here was to leverage machine learning to make the supplier selection process more predictable and intelligible. We created a platform providing the best scenarios for supplier selection and risk management, based on parameters that our client found the most important, such as product price or lead time. The solution serves as an augmentation of the whole process with a final decision made by a human.
The system has two main components: the prediction engine and the recommendation engine.
Data sets generated from SRM actions, such as supplier assessments, audits, and credit scoring, provide an important basis for further decisions regarding a supplier.