SpendEdge Introduces Supplier Risk Assessment for the Healthcare Industry

Professional Services Close-Up

April 13, 2017

SpendEdge said that supplier risk assessment is an essential practice to identify potential risk factors and threats before committing to a supplier in any industry.

According to a release, this is especially true for the healthcare industry, which has greater risk factors and responsibilities to their customers. A recent study from SpendEdge, a procurement market intelligence firm, explores the unique responsibilities healthcare organizations have when selecting suppliers for medical devices and services.

In this supplier risk assessment, SpendEdge said it worked with one of the world’s leading medical and pharmaceutical device companies who have offices and facilities in more than 50 countries. The focal point of this project was to conduct a periodic deep dive risk assessment specific to a targeted set of suppliers which were chosen by the client.

What is supplier risk assessment?

Supplier risk assessment helps businesses to identify weaknesses, threats, and other risks associated with potential suppliers in order to increase supply chain efficiency, operational efficiency, and overall safety and success. Supplier risk assessment allows businesses to develop supplier strategies, and to assess and control any threats to their operations, capital, and profits.

Healthcare industry faces increased threats

Supplier risk assessment is especially important for the healthcare industry because of the added responsibility that healthcare institutions have. They aren’t just responsible for the success of their business and employees; they are also accountable for the health and lives of their patients and customers under their care.

Healthcare organizations are liable for risks associated with their own practices, services, and employees, and must also ensure that the products and services they receive from third-party vendors meet regulations and that they are covered under federal and state/provincial healthcare programs and initiatives. Failure to do so can result in heavy fines or even criminal charges.

Supplier risk assessment can be complex for healthcare organizations because of the numerous products, devices, and services organizations need to procure and the many different suppliers available on the market, as well as varying regulatory standards and laws in different regions across the world. Finding affordable products is important, but ultimately should come second to the safety, reliability, and overall reputation of a supplier.

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