ROI via lower cost for external Premium Information
5 Ways Supply Chain Risk Management Software Provides A Quick ROI – Part 3
In part 3 of this 5 part series we show you how to save big time and money because you don’t need to buy external premium information anymore.
ROI Through Lower Cost For External Premium Information
Access to data sources from third-party suppliers is often not cost-effective for individual companies. And here are the three major reasons why:
- Access is associated with high costs
- Intelligent leverage of this information by integrating in existing IT systems only
- Interfaces must be created and maintained
When you start looking at SCRM solutions at more detail, you will find out that those solutions permit more scalability effects that allow the access and use of premium data under significantly more favorable conditions. Simply because they are literally built-in.
Six-Figure USD Amount For Natural Hazard Information?
Access to reinsurer’ databases, which provide extremely detailed risk assessments about different natural hazards for any geo coordinates can cost a six-figure USD amount per year.
Consequently only large corporations or insurance companies can afford this information.
Why Pay More When You Can Have The Same Information For Much Less?
SCRM solution providers such as riskmethods offer customers live access to exactly this data, which allows smaller and medium-sized companies to also receive exact estimates of natural hazard risks for their supplier locations, for important logistics hubs in their supply chains as well as for their own locations, and this at a fraction of the costs mentioned above.
Significant cost benefits are also available in the area of creditworthiness data or sanctions testing, which are impossible to achieve to the same extent, even by an in-house developed SCRM solution.
Here you have your third way to save big time money:
Annual Savings: $ 90,000 ROI type: Savings*
When taking into consideration publicly available price information dated October 2014 from riskmethods for example, annual costs of this ROI option are reduced by 90 %, thereby generating savings of $ 90,000 per year. ROI type: savings. The laborious research into geo coordinates, querying of risk exposure and documentation of results, which has up till now been a manual process, is also obsoleted and contributes to increased usage of information.
Have you also read Part 1 of our ROI-series about the “ROI via automated information management” and Part 2 about “ROI via visibility into your supply chain and suppliers“?
* All figures and assumptions in this article are based on the ROI Study ‘ROI Of Supply Chain Risk Management’, which you can download here. Please refer to the Study and the section ‘Process Model of the Study And Definition Of Terms’ for further details.