Enhancing efficiency and effectiveness in supplier risk management with Technology and Transformation

Dan Spreckley, Senior Manager, Consulting, Mustafa Iqbal, Partner Technology Consulting and Buki Obayiuwana, Managing Director and Head of Transformation.

In recent months, we’ve published several pieces discussing common challenges related to firms’ management of supplier risk, and possible solutions. This has included specific considerations relating supplier risk management approaches, supply chain resilience including cyber, and responsible procurement.

In this article, we look more closely at the role of technology and transformation, and how they can enable more effective and efficient approaches to supplier risk management.

Leveraging Technology

For investments supporting supply chain transformation, organisations are prioritising a range of technologies that support a consistent, data-led approach to managing risks throughout the SRM lifecycle, from sourcing to onboarding, performance management and monitoring, and exit. This includes specialist third party management solutions, GRC systems, and analytics software.

Some of the most common challenges faced by organisations in this regard relate to:

Legacy platforms: systems or point solutions that have been introduced over time, but have been superseded or are not integrated with wider systems or processes, leading to inefficiencies and complexity.
Visibility and traceability: absence of a single source of truth that provides enterprise-wide visibility and traceability.
Automating and integrating risk management processes: risk management processes are often performed in silos or retrospectively post entering into agreements, or are not effectively integrated as part of the overall supplier lifecycle.

Technology solutions such as GRC platforms or specialist supplier management platforms can help with these challenges. They can help simplify and strengthen supplier management by bringing processes and information into one place, improve visibility and coordination, and enable integration with wider business and risk processes.

Emerging technology solutions and use cases are further enabling businesses to proactively assess and manage risk, enhance efficiency, and build resilience. Below are some examples of technology trends that are helping firms strengthen their supply chain management:

Supplier risk management software: Software solutions provide real-time risk assessments and monitoring of suppliers to identify vulnerabilities. However, simply adopting the software is not enough – businesses must also refine their risk assessment processes to react quickly and to make full use of data-driven insights.
Supply chain risk analytics: With more available and reliable data, organisations are looking to leverage analytics to preempt disruption, assess the possible magnitude and impact on the supply chain, and to formulate a response. Analytics are supporting real-time decision-making, enabled through data visualisation and dashboarding of data and threat events.
Common data platforms: Managing the volume of suppliers, supplier data and quality (ensuring data is accessible, timely, relevant, and accurate) are essential for effective and timely oversight and decision-making. Since data often comes from multiple sources (internal, external, structured, unstructured, systems, devices, and feeds), organisations are adopting a unified data architecture, including a data model and platform, to drive efficiency and manage supply-chain risks.
Artificial Intelligence (AI) and Machine Learning: AI solutions can help with contract management, risk modelling and predicative analytics to get ahead of possible disruption, and supplier research. However, to get the most out of AI, organisations must resolve data quality issues, redesign decision-making workflows, train procurement teams in data interpretation, and build trust in oversight and application of algorithm-driven insights. Firms must also think about the use of AI in their supply chains, and what this means for their overall risk profile.

From Technology Adoption to Business Transformation

New technology and approaches often means change, and it’s important to consider the wider operating model to help ensure the right outcomes, including how it supports data-driven decision-making, automation, and the necessary infrastructure and responsiveness. Successful implementation often requires businesses to adapt their processes, provide training, and establish the right organisational mindset. Here are some key strategies to help ensure a smooth transition:

Redefining Roles and Ways of Working: Roles and responsibilities must evolve – this is not new. In particular as broad demands converge on procurements teams, inlcuding operational resilience, cyber, sustainability management, AI, and more, procurement teams require an increasingly broad focus and at the core of effective supplier risk management. Equally, IT teams as required to take a proactive role in data security and system integration, and supply chain leaders must foster cross-functional collaboration to drive resilience and agility.
Process Reengineering: Transformation is not just about automating existing processes—it’s about rethinking them. Businesses should map out their current supply chain operations, identify inefficiencies, and redesign workflows that fully leverage technology-driven insights.
Training and Development: The best technology is only as good as the people using it. Investing in training and development programs helps ensure that employees understand, trust, and effectively use new tools.
Collaboration and Communication: Implementing digital tools often requires closer collaboration across departments and suppliers. Businesses should establish the right platforms and protocols to support data sharing and risk mitigation.
Change Management: Adopting new technologies can meet resistance from internal teams and external suppliers. A structured change management approach – engaging key stakeholders, addressing concerns, and providing hands-on support – helps ensure smoother adoption.

In the face of evolving regulations and growing complexities in supplier risk management, digital transformation is no longer optional – it is essential. Technology adoption alone is not enough; businesses must also rethink their processes, train their workforce, and foster a culture of agility.

By leveraging technology solutions alongside a strong change management strategy, businesses can proactively address risks and streamline supply chain operations. The result is greater efficiency, resilience, and a capability well positioned to enable organisations to deliver on their overall strategy.

If you want to assess whether your technology is giving you the best results in managing supplier risk management, then contact Dan Spreckley or your usual Crowe contact.