Automated Supplier Selection with AI Driven Risk Assessment

Automated Supplier Selection and Risk Assessment

1. Define Requirements

1.1 Identify Business Needs

Determine the specific logistics and supply chain requirements, including product specifications, delivery timelines, and budget constraints.

1.2 Establish Evaluation Criteria

Develop criteria for supplier selection, such as pricing, quality, reliability, and compliance with regulations.

2. Data Collection

2.1 Gather Supplier Information

Utilize AI-driven tools like Supply Chain Wizard to aggregate data on potential suppliers, including past performance metrics and financial stability.

2.2 Integrate External Data Sources

Implement APIs to collect data from external databases, such as Dun & Bradstreet for credit risk assessments and GovSpend for public procurement records.

3. Supplier Evaluation

3.1 AI-Driven Analysis

Employ AI algorithms to analyze collected data, assessing suppliers against established criteria using platforms like IBM Watson or Oracle AI.

3.2 Scoring and Ranking

Generate a scoring system to rank suppliers based on their performance metrics, risk levels, and alignment with business needs.

4. Risk Assessment

4.1 Conduct Risk Analysis

Utilize AI tools such as Resilinc or Riskmethods to assess potential risks associated with each supplier, including geopolitical, financial, and operational risks.

4.2 Scenario Simulations

Implement predictive analytics to simulate various risk scenarios and their potential impact on the supply chain.

5. Decision Making

5.1 Review Findings

Compile insights from the AI analysis and risk assessment for review by the procurement team.

5.2 Supplier Selection

Make informed decisions on supplier selection based on data-driven insights and risk evaluations.

6. Continuous Monitoring

6.1 Implement Monitoring Tools

Utilize continuous monitoring solutions like Everstream Analytics to track supplier performance and risk factors in real-time.

6.2 Regular Updates

Schedule periodic reviews of supplier performance and risk assessments to ensure ongoing alignment with company objectives.

7. Documentation and Reporting

7.1 Maintain Records

Document the entire supplier selection and risk assessment process for compliance and future reference.

7.2 Generate Reports

Create detailed reports summarizing the analysis, decisions made, and any identified risks, utilizing tools like Tableau for data visualization.