Financial analytics firm RapidRatings and procurement technology company SynerTrade are collaborating on a solution for companies to mitigate procurement risk.
In a press release issued on Thursday (June 14), the companies announced their partnership aimed at increasing visibility and risk mitigation in businesses’ supplier sourcing and management processes, and through their overall procurement operations.
RapidRatings, owned by FHR Network, is integrating its Risk Management API technology into the SynerTrade Accelerate Platform. The solution uses data analytics to assess strengths and weaknesses of a supplier’s financial health, which is key to understanding whether a corporate buyer should do business with that firm, the announcement noted.
“More companies are leveraging their supply chains to become industry disruptors and gain a competitive advantage in their respective markets. Evaluating the financial health of prospective and current suppliers and gaining forward-looking visibility into potential risks helps companies take action to maintain resilient supply chains,” said Eric Evans, managing director, business development for RapidRatings in a statement, adding that the collaboration with SynerTrade “provides clear visibility of risks into the entire supply chain earlier in the procurement and sourcing processes.”
Together, the companies are embedding the financial health scores of suppliers into businesses’ procurement and sourcing processes.
In another statement, SynerTrade VP of Strategy Roger Blumberg said the financial implications of a lack of strategic sourcing can be significant.
“For global corporations, a disruption in any part of the supply chain could mean lost sales and a damaged brand reputation,” Blumberg noted. “Proactive risk management, which can often be costly and resource-intensive, is the best approach for mitigating risk and maintaining continuity of operations.
“We are excited to be working with RapidRatings, whose research shows a direct correlation between poor financial health and supplier performance issues,” he continued. “By incorporating the FHR into the vetting process, our mutual clients will be doing business with suppliers who are less likely to experience quality or delivery issues down the road.”