How a Global Manufacturer Overcame Supply Chain Challenges Using Third-Party Risk Management

Background & Challenges

A global food manufacturing and pet healthcare services company had a complex supply chain with a diverse group of third parties providing essential materials and services. They knew their reliance on third parties opened them up to risks but lacked an approach to understand or effectively address their risk environment in a cohesive manner. 

Approach

The company had suffered a number of supply chain related incidents and disruptions and knew they needed a third-party risk program that provided them with visibility into their true risks and allowed them to address key areas of risk. BDO helped the company design and implement a simplified and scalable third-party risk program which focused on their most critical vendors/service providers by leveraging the success of the existing business continuity program and its data.

Client Impact

BDO’s efforts helped the client lay the foundation of an effective risk culture throughout the organization. The simplified framework and focus reduced the overall workload of the program by aligning and building upon existing processes. It also provided enhanced value to the business units, allowing them to better understand their third-party risk environment and address key risks to their operations.