Overview

The comparison between your supply chain and the broader construction industry provides insights into how your supply chain’s financial health compares to the industry as a whole. The data in the table and the rows with percentages further enhance the analysis by quantifying the prevalence of distress and late filing issues within the dataset and the construction industry.

Distribution of Supply Chain by Financial Risk Score By assessing the financial risk scores, you can prioritise suppliers with lower financial risk to minimise the likelihood of disruptions caused by financially unstable suppliers. This strategic approach mitigates the risk of supply chain disruptions resulting from supplier insolvency or financial troubles. Additionally, proactively engage with suppliers displaying poor financial health scores to understand the factors affecting them. Initiate discussions with their financial director to review their latest financial report and explore opportunities for payment schedule restructuring to foster a more sustainable partnership.

Distribution of Probability of Distress Identifying suppliers with a high probability of distress allows you to proactively address issues or seek alternative suppliers. This helps in reducing the risk of supply chain disruptions caused by financially distressed suppliers.

Supplier Details Table (Bottom Section) This detailed supplier information is crucial for risk assessment and mitigation. By reviewing the distress and late filing flags, you can quickly identify suppliers that may pose financial or regulatory risks. Addressing these risks promptly can help prevent disruptions in the supply chain.

No. of Firms with Distress Flag This data allows you to assess the prevalence of financial distress in your supply chain and determine if it’s in line with industry norms. It helps you identify suppliers that need closer monitoring or intervention.

No. of Firms with Late Filing Flag In analysing companies that went into financial distress, a key indicator is late filing, which serves as a red flag. Recognising late filings prompts the application of additional financial due diligence when assessing the supplier. This proactive approach helps uncover potential financial vulnerabilities and ensures a more comprehensive risk assessment.

In summary, the provided information assists in identifying and managing financial and compliance related risks within your supply chain. By understanding the distribution of financial risk scores, probability of distress, and the compliance status of suppliers, you can prioritise risk mitigation efforts, enhance supply chain resilience, and reduce the likelihood of disruptions caused by financially distressed or non-compliant suppliers.