Risk Management
Product Manufacturer
How we helped a Melbourne product manufacturer complete due diligence and risk assessment before partnering with an overseas supplier.
Company Type
A mid-sized Melbourne-based Product Manufacturer.
Challenges
The manufacturer was seeking a new partnership with an overseas supplier to reduce costs and increase output. Being new territory for them, they wanted to avoid issues and unknowns by having an experienced advisory firm conduct due diligence and a risk assessment profile, before entering into a new partnership arrangement.
Objectives
- Search for any potential issues and unknowns with a new supplier.
- Ensure the potential new supplier could handle the required output.
- Determine the new supplier’s operational strength and longevity.
- Perform a rigorous and detailed risk assessment of the potential new supplier.
Our Solutions
- Defined scope of due diligence, including business background, key stakeholders review, financial analysis and risk model.
- Performed an on-site inspection to validate documents provided.
- Provided a complete risk assessment report.
- Recommended an engagement model and specific risk remediation plan.
Results
The manufacturer entered into a beneficial partnership with the overseas supplier, with the peace of mind that potential risks were discovered and mitigated. This partnership resulted in a cost reduction of 22%, and a sales increase of 15%.
-22%
Supplier costs
+15%
Sales