RapidRatings and POOL4TOOL Partner to Drive Risk Visibility in SRM and Sourcing
Partnership delivers streamlined solution to improve supply chain risk management (SCRM)
NEW YORK, NY | DETROIT, MI - June 07, 2017 – RapidRatings™, the leader in financial health analytics, and the leading procurement software vendor POOL4TOOL - a JAGGAER Company, today announced a partnership to streamline the supplier relationship and risk management within the supplier management process. Technology integration will incorporate the Financial Health Rating (FHR®) within the SRM, SCM, and Sourcing Portals, allowing mutual clients to select from a list of suppliers that have already been vetted for financial health and approved for compliance.
POOL4TOOL - a JAGGAER Company specializes in helping manufacturing companies improve their sourcing processes and to facilitate transparent communication with their suppliers. The partnership will allow companies to leverage the forward-looking FHR for a predictive view of the financial stability, operating efficiency, and probability of default for vendors, suppliers, and other third-party relationships. Incorporating financial risk visibility into the due dilligence process helps companies maintain compliance while saving time and resources by working with pre-vetted suppliers in the procurement and sourcing process.
“We are excited to be working with POOL4TOOL to provide a complete 360-degree view of suppliers during the procurement and sourcing processes through the lens of financial health,” said David Barton, Chief Revenue Officer, RapidRatings. “Private companies typically make up 70% or more of company’s supplier portfolio. RapidRatings’ ability to assess financial health of both public and private companies means risk visibility into the entire supply chain.”
“Supply chain risks can pose a major financial and reputational cost, particularly for complex, global corporations. Proactively managing that number of suppliers is a significant time and resource cost, and poses a massive risk to the company if a vendor fails to meet any of those standards,” said Roger Blumberg, Chief Commercial Officer at POOL4TOOL - a JAGGAER Company. “We are thrilled to be working with RapidRatings, whose studies show a direct correlation between poor financial health and supplier performance issues. Incorporating the FHR into the vetting process means our clients will be doing business with suppliers who are less likely to experience quality or delivery issues down the road.”
According to The Hackett Group’s Supply Risk Management Performance Study, for most companies, the most critical aspect of any supply risk management program is ensuring supply continuity. This includes guarding against supply bottlenecks, logistical issues, low stock and unexpected breakdowns. The second most critical driver for creating a supply risk management program is to ensure regulatory compliance.