Risk prioritisation for a leading medical company

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Risk prioritisation for a leading medical company

Our client is a leading global medical technology company that has set ambitious goals to achieve a traceable and responsible supply chain. Kumi was commissioned as responsible supply chain consultant to identify which material supply chain(s) should be prioritised for implementing a supply chain mapping and traceability solution with our blockchain technology partner, Circulor.

As a result of our engagement, the company was able to understand the key materials in its supply chain and their associated salient social and environmental risks. Through our engagement and workshops, we strengthened its internal capacity with regards to responsible sourcing. We also provided the company with insights for its decision-making process in support of its ambitions to become a leader in responsible sourcing in medical supply chains.

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Prioritising materials for a supply chain traceability programme

Kumi’s team of responsible supply chain consultants carried out:

  • Document reviews and interviews of key employees to gain an overview of the company’s supply chains, the types of products being sold, key sourcing countries and known countries of origin of raw materials.
  • An analysis of the collected information to create an initial supply chain risk prioritisation process using a bespoke methodology informed by both qualitative and quantitative inputs. Key criteria included country-level risks for producing countries, social and environmental risks, the company’s spend and its leverage over the supply chain.
  • In-depth desk-based research on the top ten prioritised materials, drawing on Kumi’s experience in numerous material supply chains.
  • The selection of prioritised materials for the pilot implementation.
  • The final report provided the key findings and targeted recommendations for the company’s pilot implementation of the traceability programme.

Helping our client to build a strategic approach to responsible supply chains

In addition, whilst not the core focus of the project, our report included findings about the company’s broader approach to responsible supply chains that we identified through the document reviews and interviews. We provided recommendations to support the company close the identified gaps, such as updating policy documents to ensure that they align with the OECD Minerals Guidance, strengthening visibility of suppliers beyond Tier 1, enhancing the supply chain risk assessment process and ensuring that public disclosures are in line with good practice recommendations for supply chain and human rights due diligence reports.

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