Liberty was engaged to partner with the Procurement team to mature its supplier risk management capabilities and develop a repeatable process to assess and mitigate risk with critical and/or distressed suppliers.

With a network of over 3,000 suppliers, the engine manufacturer needed to establish a more standardized approach to assess, quantify, address, and track remediation & risk mitigation plans for distressed suppliers. The organization needed better “early warning sign” indicators and a playbook to be able to mitigate risks.

Liberty leveraged its supplier risk methodology to quickly assess the current supplier risk management operating structure, identify areas of opportunity, and implement a go-forward operating model.

• Liberty implemented a set of new processes to identify risks, evaluate exposure, standardized diligence, & efficiently determine appropriate remediation actions
• Implemented balanced risk scorecard including external information (e.g. Dun & Bradstreet and Rapid Rating) and internal product/supplier data to assess the specific financial and operational risk
• Developed a standardized supplier risk assessment report focusing on financial, operational legal, organizational, technical, and external factors
• Documented “risk & remediation” tactics to address specific scenarios
• Established a Risk Management Office (RMO) to manage the day-to-day ongoing identification, evaluation, management, mitigation, & monitoring activities
• Supported client with select distressed supplier evaluations and remediation execution