[{"data":1,"prerenderedAt":2706},["ShallowReactive",2],{"resources-blog-retail-sourcing-best-practices-[object Object]-published":3},{"name":4,"created_at":5,"published_at":6,"updated_at":7,"id":8,"uuid":9,"content":10,"slug":2693,"full_slug":2694,"sort_by_date":2695,"position":2696,"tag_list":2697,"is_startpage":11,"parent_id":1373,"meta_data":29,"group_id":2698,"first_published_at":2699,"release_id":29,"lang":35,"path":29,"alternates":2700,"default_full_slug":2694,"translated_slugs":2701},"Retail Sourcing Best Practices: A Strategic Approach","2026-04-22T12:18:02.213Z","2026-06-03T12:52:04.789Z","2026-06-03T12:52:04.812Z",168635119320119,"9057cc8e-76df-4ea5-b04a-8179a0ae99ad",{"big":11,"_uid":12,"type":13,"pinned":11,"section":44,"tagline":429,"metatags":430,"overline":435,"component":436,"thumbnail":437,"additional_seo":441,"related_articles":442,"footer_cta_text_alt":2690},false,"3a48d16a-9e42-4737-a0a6-c60ee4d2d5ce",[14],{"name":15,"created_at":16,"published_at":17,"updated_at":18,"id":19,"uuid":20,"content":21,"slug":27,"full_slug":28,"sort_by_date":29,"position":30,"tag_list":31,"is_startpage":11,"parent_id":32,"meta_data":29,"group_id":33,"first_published_at":34,"release_id":29,"lang":35,"path":29,"alternates":36,"default_full_slug":28,"translated_slugs":37,"_stopResolving":43},"Blog","2025-03-11T18:35:50.636Z","2026-05-20T11:24:42.311Z","2026-05-20T11:24:42.332Z",638707898,"64442308-f952-486c-9828-acfe7d854148",{"_uid":22,"component":23,"folder_slug":24,"overview_page":25,"articles_page_title":15},"fa26946f-991a-4f78-9c9e-b1c074d74ecf","article_type","test/articles/blog",[26],"88e88578-0a02-419f-9ccc-58fe31e98681","blog","articles/type/blog",null,-20,[],559406674,"095d1902-25d3-4d9f-9f72-eae04585b89c","2025-03-12T09:16:58.265Z","default",[],[38,40],{"path":28,"name":29,"lang":39,"published":29},"fr",{"path":41,"name":29,"lang":42,"published":29},"artikel/typ/blog","de",true,[45],{"_uid":46,"title":4,"content":47,"component":428},"9188f656-bed9-46e7-8f0a-35379e1a7617",[48],{"_uid":49,"is_big":11,"content":50,"component":427},"6fcb5ab4-0233-46a8-8099-e9bbba8bef3c",{"type":51,"content":52},"doc",[53,70,74,78,79,89,93,97,101,105,117,121,138,139,146,150,154,158,172,184,196,200,201,208,212,224,228,232,236,237,244,248,252,264,276,288,289,296,300,304,316,328,340,344,345,352,356,368,372,392,407,408,415,419,423],{"type":54,"content":55},"paragraph",[56,59,68],{"text":57,"type":58},"The retail industry is one of the central contributors to global profit, representing over ","text",{"text":60,"type":58,"marks":61},"$28.2 trillion in sales each year",[62],{"type":63,"attrs":64},"link",{"href":65,"uuid":29,"anchor":29,"target":66,"linktype":67},"https://www.statista.com/statistics/443522/global-retail-sales/","_blank","url",{"text":69,"type":58},". While over $20 trillion of this figure comes from physical retail stores, there is still an incredible $8 trillion flowing through online stores and e-commerce sites. ",{"type":54,"content":71},[72],{"text":73,"type":58},"Businesses that operate in the retail industry need to establish a comprehensive network of suppliers, providing products for consumer purchase in a number of product niches. As a retail business grows, it must master retail sourcing, understand how to improve supplier relationships and create a sustainable, infallible retail supply chain.",{"type":54,"content":75},[76],{"text":77,"type":58},"By leveraging retail sourcing best practices, businesses can boost their bottom-line results, meet evolving consumer expectations, and establish a competitive edge in the market. In this article, we’ll discuss the power of effective retail procurement, demonstrating leading strategies that businesses can use to satisfy their customers, meet compliance obligations, and enhance profit simultaneously.",{"type":54},{"type":80,"attrs":81,"content":83},"heading",{"level":82},2,[84],{"text":85,"type":58,"marks":86},"Understanding Business Requirements in Retail Sourcing",[87],{"type":88},"bold",{"type":54,"content":90},[91],{"text":92,"type":58},"The retail industry is a global giant that’s continuously expanded over the past few decades. Especially with the rise of e-commerce and online shopping, retail businesses, now more than ever before, have to understand the process of effective procurement and stocking.",{"type":54,"content":94},[95],{"text":96,"type":58},"Retail businesses must balance both their online and physical storefronts, ensuring an ample supply of products for their costs. When a customer attempts to do business with a store and finds that the product they desire is out of stock, it can reduce their satisfaction. ",{"type":54,"content":98},[99],{"text":100,"type":58},"On the other hand, if a physical or digital storefront orders too much stock to their retail store, they could impact the cost-effective nature of their business. Unused stock will generate additional expenditure costs, as well as increase the total amount that retail businesses have to spend on stock storage.",{"type":54,"content":102},[103],{"text":104,"type":58},"Effective retail sourcing goes beyond just selecting the right partners. It includes the full scope of understanding a retail market and deducing the right quantities of products to order for each store. The complexity of retail management is only increasing, with the past few years seeing a dramatic rise in total retail sales.",{"type":54,"content":106},[107,109,115],{"text":108,"type":58},"From the year 1992 to 2022, we’ve seen the total amount of retail sales nearly quadruple, moving from under ",{"text":110,"type":58,"marks":111},"2,000 billion USD in retail sales",[112],{"type":63,"attrs":113},{"href":114,"uuid":29,"anchor":29,"target":29,"linktype":67},"https://www.statista.com/statistics/197576/annual-retail-sales-in-the-us-since-1992/",{"text":116,"type":58}," per year in 1992 to over 7,200 billion USD in 2022.",{"type":54,"content":118},[119],{"text":120,"type":58},"As even more capital pours into this industry, the heightened demand for products translates into an increasing need for precision in retail sourcing, procurement, and stock distribution.",{"type":54,"content":122},[123,131,136],{"type":124,"attrs":125},"image",{"id":126,"alt":127,"src":128,"title":129,"source":129,"copyright":129,"meta_data":130},21391059,"Total retail sales in the US from 1992 to 2023.","https://a.storyblok.com/f/297658/510x353/931090ff4f/blog-graphic-retail-sales.svg","",{"alt":127,"title":129,"source":129,"copyright":129},{"text":132,"type":58,"marks":133},"Source",[134],{"type":63,"attrs":135},{"href":114,"uuid":29,"anchor":29,"target":66,"linktype":67},{"text":137,"type":58},": Total retail sales in the US from 1992 to 2023.",{"type":54},{"type":80,"attrs":140,"content":141},{"level":82},[142],{"text":143,"type":58,"marks":144},"Setting Clear Sourcing Goals",[145],{"type":88},{"type":54,"content":147},[148],{"text":149,"type":58},"The first step toward creating an effective retail sourcing strategy is to set clear sourcing goals. ",{"type":54,"content":151},[152],{"text":153,"type":58},"When a business understands its audience and its sourcing process, it is better equipped to place accurate orders with suppliers, create favourable contracts with providers, and consistently please its customers.",{"type":54,"content":155},[156],{"text":157,"type":58},"Here are three effective sourcing goals that retail businesses should consider:",{"type":159,"content":160},"bullet_list",[161],{"type":162,"content":163},"list_item",[164],{"type":54,"content":165},[166,170],{"text":167,"type":58,"marks":168},"Understanding demand:",[169],{"type":88},{"text":171,"type":58}," Retail companies implement predictive analytics tools into their stock management style to more effectively plan for the future. Especially with the rise of AI and ML tools, high-quality predictive analytics are more accessible than ever before, helping businesses pinpoint the exact stock figures they need to order from retail suppliers.",{"type":159,"content":173},[174],{"type":162,"content":175},[176],{"type":54,"content":177},[178,182],{"text":179,"type":58,"marks":180},"Enhance supplier collaboration:",[181],{"type":88},{"text":183,"type":58}," A retail business is only as successful as its suppliers, needing a constant influx of high-quality products to sell to its customers. By focusing on enhancing supplier relationships with PLM systems that analyse supplier performance, businesses can identify their best providers. In retail procurement, locating suppliers with effective processes and low levels of risk can contribute to a more sustainable, long-term business model.",{"type":159,"content":185},[186],{"type":162,"content":187},[188],{"type":54,"content":189},[190,194],{"text":191,"type":58,"marks":192},"Enhancing product quality: ",[193],{"type":88},{"text":195,"type":58},"Another benefit of retail procurement, which has strong links between retail stores and suppliers, is that businesses can work together to enhance product quality. Retail stores can collect product feedback from customers and share it with suppliers, creating a feedback loop that helps to improve products, reduce return rates, and create more sustainable retail product sales.",{"type":54,"content":197},[198],{"text":199,"type":58},"Sourcing in retail is an ongoing process, one that flourishes when suppliers and vendors work together toward providing the best possible final products to customers.",{"type":54},{"type":80,"attrs":202,"content":203},{"level":82},[204],{"text":205,"type":58,"marks":206},"Transparency and Compliance in Retail Procurement",[207],{"type":88},{"type":54,"content":209},[210],{"text":211,"type":58},"Another important aspect of effective retail sourcing is regulatory compliance and the ability of a business to adhere to transparent practices. As with any field, regulatory compliance is essential to the success of a business. ",{"type":54,"content":213},[214,216,222],{"text":215,"type":58},"New regulations are constantly emerging that influence retail procurement. For example, the ",{"text":217,"type":58,"marks":218},"EU Deforestation Regulation for Sustainable Trade",[219],{"type":63,"attrs":220},{"href":221,"uuid":29,"anchor":29,"target":29,"linktype":67},"https://www.prewave.com/blog/mastering-eu-deforestation-regulation-for-sustainable-trade/",{"text":223,"type":58}," introduces product-based legislation that prohibits vendors from placing certain products on the EU market. Without a complete and up-to-date understanding of these regulations, businesses may fail to comply with necessary regulations and receive fines or temporary trade bans.",{"type":54,"content":225},[226],{"text":227,"type":58},"Retail organisations must endeavour to create transparent relationships with their suppliers to ensure that they, too, are aware of compliance requirements. Even beyond compliance obligations, businesses should ensure that their suppliers align with their corporate social responsibility goals. Especially if a retail business prides itself on adhering to global sustainability standards, it should be confident that its suppliers follow the same standards.",{"type":54,"content":229},[230],{"text":231,"type":58},"Leveraging Prewave is an effective method of enhancing transparency in the retail supply chain. Prewave offers real-time risk intelligence and supplier updates, improving visibility into supplier operations and providing businesses with an easy method of identifying and managing risks in their supply chain.",{"type":54,"content":233},[234],{"text":235,"type":58},"Prewave can identify if a supplier represents a risk to a retail company’s supply chain, giving the company enough time to locate potential replacements or diversify their chain of operations. Equally, Prewave can help identify retail suppliers that are not meeting compliance standards, simplifying the process of creating a stable and sustainable retail supply chain.",{"type":54},{"type":80,"attrs":238,"content":239},{"level":82},[240],{"text":241,"type":58,"marks":242},"Effective Communication Channels for Retail Sourcing",[243],{"type":88},{"type":54,"content":245},[246],{"text":247,"type":58},"Creating strong supplier links won’t happen overnight. Successful retail procurement in which retail stores and suppliers have extended, and fruitful relationships can take years of work. To expedite the process, businesses can focus on establishing effective communication channels.",{"type":54,"content":249},[250],{"text":251,"type":58},"There are numerous ways of opening the door to a more productive relationship with a supplier. Many of these practices begin with transparency on the side of the retail business themselves, with suppliers then following suit. For example:",{"type":159,"content":253},[254],{"type":162,"content":255},[256],{"type":54,"content":257},[258,262],{"text":259,"type":58,"marks":260},"Establish clear communication pathways:",[261],{"type":88},{"text":263,"type":58}," Retail businesses can clearly outline their preferred method of communication, opening several potential channels that providers can use. By accommodating retail suppliers and providing them with multiple ways of interacting with your business, you can create clear pathways for data exchange. Once these are in place, you’ll have an easier time creating a flow of supplier data into your retail business.",{"type":159,"content":265},[266],{"type":162,"content":267},[268],{"type":54,"content":269},[270,274],{"text":271,"type":58,"marks":272},"Build trust and mutual understanding: ",[273],{"type":88},{"text":275,"type":58},"Many retail businesses create one-way systems where suppliers send information but get nothing back. Creating a two-way street where you also offer transparency into your business practices can inspire your suppliers to be more generous with their internal data. After all, a partnership is exactly that – something that should favour both businesses.",{"type":159,"content":277},[278],{"type":162,"content":279},[280],{"type":54,"content":281},[282,286],{"text":283,"type":58,"marks":284},"Cultivating long-term partnerships: ",[285],{"type":88},{"text":287,"type":58},"Creating extended relationships will naturally come from the first two strategies we have outlined here. However, inviting your suppliers to renew their contracts with more favourable terms can also create a sense of loyalty. Over time, a retail business can create stable partnerships which can last for decades.",{"type":54},{"type":80,"attrs":290,"content":291},{"level":82},[292],{"text":293,"type":58,"marks":294},"Optimising Sourcing Strategies With Technology",[295],{"type":88},{"type":54,"content":297},[298],{"text":299,"type":58},"Embracing technological solutions and innovations is vital in the pursuit of more effective retail sourcing strategies. As new tools hit the market, businesses can leverage systems like AI to improve their workflows, streamline compliance, and boost their bottom line.",{"type":54,"content":301},[302],{"text":303,"type":58},"The retail industry has a constant flood of new data, making it a phenomenal industry for technological enhancement during the procurement process. Here are a few technologies that retail companies can take advantage of to improve decision-making and decrease risk in the retail supply chain:",{"type":159,"content":305},[306],{"type":162,"content":307},[308],{"type":54,"content":309},[310,314],{"text":311,"type":58,"marks":312},"AI risk management tool: ",[313],{"type":88},{"text":315,"type":58},"Prewave’s AI-driven risk management insights will pinpoint risks in the retail supply chain and allow businesses to implement strategies to mitigate them. Artificial intelligence tools can process huge volumes of data at once, computing numerous risk factors to calculate overall supplier risk scores. Early detection of risk is the first step toward effective management.",{"type":159,"content":317},[318],{"type":162,"content":319},[320],{"type":54,"content":321},[322,326],{"text":323,"type":58,"marks":324},"Data-driven decision-making tools: ",[325],{"type":88},{"text":327,"type":58},"Prewave’s data-driven decision-making tools will help enhance strategic procurement decisions, helping a retail company’s bottom line. After establishing transparent flows of data between retail businesses and suppliers, a company can use this information to conduct data-driven analysis, identifying the best course of action to enhance profits and improve customer satisfaction.",{"type":159,"content":329},[330],{"type":162,"content":331},[332],{"type":54,"content":333},[334,338],{"text":335,"type":58,"marks":336},"Automation technologies: ",[337],{"type":88},{"text":339,"type":58},"Where possible, incorporating automation technologies will streamline workflows and decrease the labour associated with many manual processes in retail procurement management. By minimising manual processes in the supply chain, retail businesses can create a highly reliable system that delivers the best to them and their customers. ",{"type":54,"content":341},[342],{"text":343,"type":58},"Businesses can enhance procurement in retail by optimising their sourcing strategies with technology. More tools are becoming available every single day that companies can use to streamline sourcing, enhance relationships, and improve stock management.",{"type":54},{"type":80,"attrs":346,"content":347},{"level":82},[348],{"text":349,"type":58,"marks":350},"Adopting Sustainable Sourcing Practices in Retail",[351],{"type":88},{"type":54,"content":353},[354],{"text":355,"type":58},"Another central consideration that retail sellers should be aware of is the increasing need to address social, environmental, and ethical risks in the supply chain. Beyond the rising demand for companies to meet certain conditions from regulatory bodies, consumers of retail products are also more inclined to shop with sustainable brands.",{"type":54,"content":357},[358,360,366],{"text":359,"type":58},"According to the ",{"text":361,"type":58,"marks":362},"World Economic Forum",[363],{"type":63,"attrs":364},{"href":365,"uuid":29,"anchor":29,"target":29,"linktype":67},"https://www.weforum.org/agenda/2023/01/consumer-power-net-zero-food-producer-retailer-davos23/#:~:text=Forum%20Annual%20Meeting-,At%20least%2065%25%20of%20consumers%20want%20to%20make%20the%20right,nourishing%20the%20growing%20global%20population.",{"text":367,"type":58},", around 65% of consumers are looking to purchase sustainable options, with many individuals considering sustainable practices a make-or-break factor. By adopting sustainable supply chain practices, businesses can meet demands—and expectations.",{"type":54,"content":369},[370],{"text":371,"type":58},"Retail providers are often the touchpoint between consumers and the retail supply chain, making their decisions have huge weight in the overall retail supply chain. If a retailer decides to stop stocking a product – perhaps due to finding out it is produced without adherence to social, environmental, or ethical standards – this will have a direct impact on suppliers, forcing them to change their products.",{"type":54,"content":373},[374,376,382,384,390],{"text":375,"type":58},"Retail businesses must also be able to monitor and report on sustainability metrics. Effective reporting and documented due diligence processes are a central part of many compliance initiatives, like the ",{"text":377,"type":58,"marks":378},"CSDDD",[379],{"type":63,"attrs":380},{"href":381,"uuid":29,"anchor":29,"target":29,"linktype":67},"https://www.prewave.com/blog/csddd-directive-update-eu-reaches-important-agreement/",{"text":383,"type":58}," and ",{"text":385,"type":58,"marks":386},"CSRD",[387],{"type":63,"attrs":388},{"href":389,"uuid":29,"anchor":29,"target":29,"linktype":67},"https://www.prewave.com/blog/eu-csddd-vs-csrd-key-differences/",{"text":391,"type":58},". Although businesses will be aware of the most prominent legislation in their area of operation, there are actually hundreds of ESG regulations across the globe that they may have to be aware of. ",{"type":54,"content":393},[394,400,405],{"type":124,"attrs":395},{"id":396,"alt":397,"src":398,"title":129,"source":129,"copyright":129,"meta_data":399},21391058,"Regional Breakdown of ESG Regulations","https://a.storyblok.com/f/297658/237x150/c234856ed8/blog-graphic-retail-sourcing-map.svg",{"alt":397,"title":129,"source":129,"copyright":129},{"text":132,"type":58,"marks":401},[402],{"type":63,"attrs":403},{"href":404,"uuid":29,"anchor":29,"target":66,"linktype":67},"https://www.linkedin.com/posts/leon-saunders-calvert-6206923_global-esg-regulation-increases-by-155-over-activity-7077686385746264064-bIT9.",{"text":406,"type":58}," – Regional Breakdown of ESG Regulations.",{"type":54},{"type":80,"attrs":409,"content":410},{"level":82},[411],{"text":412,"type":58,"marks":413},"Final Thoughts – Strategic Insights for Retailers in Procurement",[414],{"type":88},{"type":54,"content":416},[417],{"text":418,"type":58},"Strategic sourcing is vital in the retail supply chain, allowing businesses to enhance their processes, build stronger relationships with suppliers, and cultivate sustainable supply chains that can last for decades. Without strategic sourcing, businesses may be unable to gain visibility into their supply chain, which can cause compliance issues and leave a company susceptible to disruptions.",{"type":54,"content":420},[421],{"text":422,"type":58},"As a leader in the supply chain management space, Prewave helps retail businesses better understand their suppliers. By providing insight into supplier operations and enhancing transparency in the retail supply chain, Prewave helps build compliant, secure, and sustainable retail supply chains—ensuring operational resilience for retail organisations.",{"type":54,"content":424},[425],{"text":426,"type":58},"By engaging with the strategies and suggestions outlined in this article, businesses can use these best practices to streamline growth, drive efficiency, and meet ethical standards in retail sourcing strategies.","c-text","m-section","Posted June 25, 2024 • 7 min read",{"_uid":431,"title":4,"plugin":432,"og_image":433,"og_title":129,"description":434,"twitter_image":129,"twitter_title":129,"og_description":129,"twitter_description":129},"22e29c42-6308-4df4-909d-13205869cc8b","seo_metatags","https://a.storyblok.com/f/297658/5622x3551/b2724c593a/retail-sourcing.jpg","Master retail sourcing with best practices to boost profitability, meet consumer demands, ensure compliance, and foster sustainable supply chains.","7 min read","article",{"id":438,"alt":4,"name":129,"focus":129,"title":129,"source":129,"filename":433,"copyright":129,"fieldtype":439,"meta_data":440,"is_external_url":11},21391107,"asset",{"alt":4,"title":129,"source":129,"copyright":129},[],[443,2060,2425],{"name":444,"created_at":445,"published_at":446,"updated_at":447,"id":448,"uuid":449,"content":450,"slug":2045,"full_slug":2046,"sort_by_date":1370,"position":2047,"tag_list":2048,"is_startpage":11,"parent_id":1373,"meta_data":29,"group_id":2049,"first_published_at":2050,"release_id":29,"lang":35,"path":29,"alternates":2051,"default_full_slug":2046,"translated_slugs":2052,"_stopResolving":43,"cols":2057},"How organisations achieve to 331% ROI through holistic supplier risk management","2026-04-22T12:27:21.524Z","2026-06-03T12:57:17.455Z","2026-06-03T12:57:17.486Z",168637405315086,"8224a2b4-263a-405c-a6fa-5e9e4f1d7816",{"big":11,"_uid":451,"type":452,"pinned":11,"section":461,"tagline":929,"metatags":930,"overline":435,"component":436,"thumbnail":936,"additional_seo":939,"related_articles":940,"footer_cta_text_alt":2042},"43d1daf6-9e44-4ad4-a10c-e756b640a4e2",[453],{"name":15,"created_at":16,"published_at":17,"updated_at":18,"id":19,"uuid":20,"content":454,"slug":27,"full_slug":28,"sort_by_date":29,"position":30,"tag_list":456,"is_startpage":11,"parent_id":32,"meta_data":29,"group_id":33,"first_published_at":34,"release_id":29,"lang":35,"path":29,"alternates":457,"default_full_slug":28,"translated_slugs":458,"_stopResolving":43},{"_uid":22,"component":23,"folder_slug":24,"overview_page":455,"articles_page_title":15},[26],[],[],[459,460],{"path":28,"name":29,"lang":39,"published":29},{"path":41,"name":29,"lang":42,"published":29},[462],{"_uid":463,"title":444,"content":464,"subtitle":129,"component":428},"98eb847b-2e19-47ed-9eff-03c0bd068454",[465],{"_uid":466,"is_big":11,"content":467,"component":427},"8c77d545-5076-4cf8-a710-fa5e9c132d99",{"type":51,"content":468},[469,476,489,498,503,508,519,572,581,588,599,604,629,631,639,644,651,658,663,668,674,676,683,688,693,695,701,706,711,730,735,745,756,800,805,851,853,860,897,899,906,911,916,925],{"type":54,"attrs":470,"content":471},{"textAlign":29},[472],{"text":473,"type":58,"marks":474},"The financial model used in Forrester's Total Economic Impact™ study is based on real customer data. Here’s how it works.",[475],{"type":88},{"type":54,"attrs":477,"content":478},{"textAlign":29},[479],{"text":480,"type":58,"marks":481},"Read the Total Economic Impact™ study",[482,488],{"type":63,"attrs":483},{"href":484,"uuid":485,"anchor":29,"target":486,"linktype":487},"/the-total-economic-impact-of-prewave-s-holistic-supplier-risk-management-platform","d5f8e25a-3e2a-4cb6-a769-f99a9d565d8f","_self","story",{"type":88},{"type":54,"attrs":490,"content":491},{"textAlign":29},[492],{"type":493,"marks":494},"hard_break",[495,497],{"type":63,"attrs":496},{"href":484,"uuid":485,"anchor":29,"target":486,"linktype":487},{"type":88},{"type":54,"attrs":499,"content":500},{"textAlign":29},[501],{"text":502,"type":58},"Headline numbers are easy to quote. The methodology behind them matters more.",{"type":54,"attrs":504,"content":505},{"textAlign":29},[506],{"text":507,"type":58},"Forrester’s recent TEI™ study of Prewave's supplier risk management platform provides an independent financial model. Built from in-depth interviews with enterprise Prewave customers, it presents a structured three-year economic analysis using Forrester's established TEI framework. ",{"type":54,"attrs":509,"content":510},{"textAlign":29},[511,513,514,515],{"text":512,"type":58},"Benefits are quantified across four categories—disruption cost reduction, compliance automation, operational efficiency and legacy tool consolidation—and every figure is risk-adjusted to ensure the outputs are conservative by design.",{"type":493},{"type":493},{"text":516,"type":58,"marks":517},"Most significant quantified benefits from the report",[518],{"type":88},{"type":159,"content":520},[521,528,535,542,549,556,563],{"type":162,"content":522},[523],{"type":54,"attrs":524,"content":525},{"textAlign":29},[526],{"text":527,"type":58},"331% ROI",{"type":162,"content":529},[530],{"type":54,"attrs":531,"content":532},{"textAlign":29},[533],{"text":534,"type":58},"€4.3 million net present value (NPV) ",{"type":162,"content":536},[537],{"type":54,"attrs":538,"content":539},{"textAlign":29},[540],{"text":541,"type":58},"Payback in under six months",{"type":162,"content":543},[544],{"type":54,"attrs":545,"content":546},{"textAlign":29},[547],{"text":548,"type":58},"€3.2M in disruption cost reduction",{"type":162,"content":550},[551],{"type":54,"attrs":552,"content":553},{"textAlign":29},[554],{"text":555,"type":58},"€2M in compliance improvements ",{"type":162,"content":557},[558],{"type":54,"attrs":559,"content":560},{"textAlign":29},[561],{"text":562,"type":58},"€292K in procurement efficiency gains",{"type":162,"content":564},[565,570],{"type":54,"attrs":566,"content":567},{"textAlign":29},[568],{"text":569,"type":58},"€119K from legacy tool consolidation",{"type":54,"attrs":571},{"textAlign":29},{"type":54,"attrs":573,"content":574},{"textAlign":29},[575,580],{"type":124,"attrs":576},{"id":577,"alt":129,"src":578,"title":129,"source":129,"copyright":129,"meta_data":579},168263484299748,"https://a.storyblok.com/f/297658/1491x1025/6abf75b99c/consolidated-three-year-risk-adjusted-metrics.png",{},{"type":493},{"type":80,"attrs":582,"content":583},{"level":82,"textAlign":29},[584],{"text":585,"type":58,"marks":586},"How Forrester built the financial model",[587],{"type":88},{"type":54,"attrs":589,"content":590},{"textAlign":29},[591,596,597],{"type":124,"attrs":592},{"id":593,"alt":129,"src":594,"title":129,"source":129,"copyright":129,"meta_data":595},168263812500011,"https://a.storyblok.com/f/297658/1594x614/16dc6094b7/quantified-benefit-data-as-applied-to-the-composite.png",{},{"type":493},{"text":598,"type":58},"Forrester's Total Economic Impact™ (TEI) framework is a structured approach to technology ROI analysis. For this study, Forrester conducted in-depth interviews with enterprise manufacturers using Prewave. From those conversations, it constructed a composite organisation, a representative global manufacturer that reflects the scale, supplier base and risk environment described across the interviews. All financial projections in the study are modelled against this composite.",{"type":54,"attrs":600,"content":601},{"textAlign":29},[602],{"text":603,"type":58},"Once the composite organisation was defined, Forrester applied a risk-adjusted discounted cash flow model across a three-year period. This involves two deliberate adjustments that distinguish the TEI approach from standard ROI claims:",{"type":159,"content":605},[606,617],{"type":162,"content":607},[608],{"type":54,"attrs":609,"content":610},{"textAlign":29},[611,615],{"text":612,"type":58,"marks":613},"Risk adjustment.",[614],{"type":88},{"text":616,"type":58}," Every benefit identified in the study is reduced by a risk factor to account for uncertainty in realisation. This ensures the model reflects a conservative estimate rather than a best-case scenario.",{"type":162,"content":618},[619],{"type":54,"attrs":620,"content":621},{"textAlign":29},[622,626,628],{"text":623,"type":58,"marks":624},"Discounting.",[625],{"type":88},{"text":627,"type":58}," Future benefits are discounted back to present value, reflecting the principle that a euro received in three years is worth less than a euro received today.",{"type":493},{"type":54,"attrs":630},{"textAlign":29},{"type":80,"attrs":632,"content":634},{"level":633,"textAlign":29},3,[635],{"text":636,"type":58,"marks":637},"Breaking down the three headline outputs",[638],{"type":88},{"type":54,"attrs":640,"content":641},{"textAlign":29},[642],{"text":643,"type":58},"“Interviewees highlighted that their organisation’s investment in Prewave contributed to business growth. They said supply chains became less risky and the impact on production was reduced, which made their companies more reliable suppliers, and allowed them to charge premium prices and win deals over competitors.”",{"type":54,"attrs":645,"content":646},{"textAlign":29},[647,649,650],{"text":648,"type":58},"THE TOTAL ECONOMIC IMPACT™ OF PREWAVE’S HOLISTIC SUPPLIER RISK MANAGEMENT PLATFORM, FORRESTER",{"type":493},{"type":493},{"type":80,"attrs":652,"content":653},{"level":633,"textAlign":29},[654],{"text":655,"type":58,"marks":656},"331% three-year ROI",[657],{"type":88},{"type":54,"attrs":659,"content":660},{"textAlign":29},[661],{"text":662,"type":58},"Return on investment is calculated by comparing the total quantified benefits against the total investment costs over the three-year period, after risk adjustment.",{"type":54,"attrs":664,"content":665},{"textAlign":29},[666],{"text":667,"type":58},"In practical terms: for every euro invested in Prewave over three years, the composite organisation realised approximately €4.31 in benefit. The 331% figure represents the net return expressed as a percentage of that investment.",{"type":54,"attrs":669,"content":670},{"textAlign":29},[671,673],{"text":672,"type":58},"A 331% ROI does not mean the total return is 331% of costs; it means the net return above and beyond the cost of investment is 331% of what was spent. It is calculated on a risk-adjusted basis, meaning it accounts for the possibility that not all projected benefits will be fully realised.",{"type":493},{"type":54,"attrs":675},{"textAlign":29},{"type":80,"attrs":677,"content":678},{"level":633,"textAlign":29},[679],{"text":680,"type":58,"marks":681},"€4.3M net present value",[682],{"type":88},{"type":54,"attrs":684,"content":685},{"textAlign":29},[686],{"text":687,"type":58},"Net present value (NPV) is the discounted value of projected benefits minus costs over the three-year period. It calculates the absolute economic value created after accounting for the cost of capital and the time at which benefits are realised.",{"type":54,"attrs":689,"content":690},{"textAlign":29},[691],{"text":692,"type":58},"A positive NPV means the investment creates value in economic terms, even accounting for the fact that future benefits are worth less than present ones. The €4.3M figure represents the total economic surplus generated by deploying Prewave over three years, expressed in today's money.",{"type":54,"attrs":694},{"textAlign":29},{"type":80,"attrs":696,"content":697},{"level":633,"textAlign":29},[698],{"text":541,"type":58,"marks":699},[700],{"type":88},{"type":54,"attrs":702,"content":703},{"textAlign":29},[704],{"text":705,"type":58},"The payback period is the point at which cumulative benefits exceed cumulative investment costs. In other words, when the platform pays for itself. ",{"type":54,"attrs":707,"content":708},{"textAlign":29},[709],{"text":710,"type":58},"A payback period of under six months is unusually short for enterprise software, and reflects two characteristics of the Prewave deployment model:",{"type":712,"attrs":713,"content":715},"ordered_list",{"order":714},1,[716,723],{"type":162,"content":717},[718],{"type":54,"attrs":719,"content":720},{"textAlign":29},[721],{"text":722,"type":58},"Risk reduction benefits begin accruing in Year 1 as earlier alert detection reduces crisis response costs. ",{"type":162,"content":724},[725],{"type":54,"attrs":726,"content":727},{"textAlign":29},[728],{"text":729,"type":58},"Procurement efficiency gains, specifically the reduction in manual supplier background check effort, are realised quickly once monitoring workflows are in place. ",{"type":54,"attrs":731,"content":732},{"textAlign":29},[733],{"text":734,"type":58},"The combination means the breakeven point arrives well before the end of the first year, after which each subsequent year of benefit compounds the overall return.",{"type":80,"attrs":736,"content":737},{"level":82,"textAlign":29},[738,741],{"type":493,"marks":739},[740],{"type":88},{"text":742,"type":58,"marks":743},"The four benefit categories behind the headline",[744],{"type":88},{"type":54,"attrs":746,"content":747},{"textAlign":29},[748,753,754],{"type":124,"attrs":749},{"id":750,"alt":129,"src":751,"title":129,"source":129,"copyright":129,"meta_data":752},168264635370328,"https://a.storyblok.com/f/297658/1478x896/5ec05ef090/four-benefit-categories.png",{},{"type":493},{"text":755,"type":58},"The TEI study structures its financial analysis across four benefit categories. Each is modelled independently, risk-adjusted and discounted to present value before being combined into the headline figures.",{"type":159,"content":757},[758,768,779,790],{"type":162,"content":759},[760],{"type":54,"attrs":761,"content":762},{"textAlign":29},[763,766],{"text":548,"type":58,"marks":764},[765],{"type":88},{"text":767,"type":58}," (risk-adjusted PV). Earlier detection and structured mitigation progressively reduce crisis-related costs — premium freight, emergency sourcing, production stoppages, crisis task force effort — across three years. This is the largest single benefit category.",{"type":162,"content":769},[770],{"type":54,"attrs":771,"content":772},{"textAlign":29},[773,777],{"text":774,"type":58,"marks":775},"Nearly €2M in compliance improvements ",[776],{"type":88},{"text":778,"type":58},"(risk-adjusted PV). Automated ESG screening reduces the need for headcount expansion while structured monitoring helps avoid a modelled €1M regulatory penalty.",{"type":162,"content":780},[781],{"type":54,"attrs":782,"content":783},{"textAlign":29},[784,788],{"text":785,"type":58,"marks":786},"€292K in procurement efficiency gains ",[787],{"type":88},{"text":789,"type":58},"(risk-adjusted PV). Automated risk scoring and continuous monitoring reduce manual supplier background check effort by up to 97.5% over three years.",{"type":162,"content":791},[792],{"type":54,"attrs":793,"content":794},{"textAlign":29},[795,798],{"text":569,"type":58,"marks":796},[797],{"type":88},{"text":799,"type":58}," (risk-adjusted PV). Organisations replacing fragmented risk, sustainability and compliance tools with a single platform reduce both licensing costs and operational overhead.",{"type":54,"attrs":801,"content":802},{"textAlign":29},[803],{"text":804,"type":58},"Total quantified benefits across all four categories:",{"type":159,"content":806},[807,818,829,840],{"type":162,"content":808},[809],{"type":54,"attrs":810,"content":811},{"textAlign":29},[812,816],{"text":813,"type":58,"marks":814},"€5.6M",[815],{"type":88},{"text":817,"type":58}," in total quantified benefits (present value, three years)",{"type":162,"content":819},[820],{"type":54,"attrs":821,"content":822},{"textAlign":29},[823,827],{"text":824,"type":58,"marks":825},"€1.3M",[826],{"type":88},{"text":828,"type":58}," total cost of investment",{"type":162,"content":830},[831],{"type":54,"attrs":832,"content":833},{"textAlign":29},[834,838],{"text":835,"type":58,"marks":836},"€4.3M",[837],{"type":88},{"text":839,"type":58}," net present value",{"type":162,"content":841},[842],{"type":54,"attrs":843,"content":844},{"textAlign":29},[845,849],{"text":846,"type":58,"marks":847},"331%",[848],{"type":88},{"text":850,"type":58}," ROI",{"type":54,"attrs":852},{"textAlign":29},{"type":80,"attrs":854,"content":855},{"level":82,"textAlign":29},[856],{"text":857,"type":58,"marks":858},"Key takeaways for financial leaders",[859],{"type":88},{"type":159,"content":861},[862,869,876,883,890],{"type":162,"content":863},[864],{"type":54,"attrs":865,"content":866},{"textAlign":29},[867],{"text":868,"type":58},"The TEI framework applies two deliberate adjustments, risk adjustment and discounting, that make the figures conservative by design",{"type":162,"content":870},[871],{"type":54,"attrs":872,"content":873},{"textAlign":29},[874],{"text":875,"type":58},"Each of the four benefit categories is modelled independently, risk-adjusted and discounted before being combined into the headline figures",{"type":162,"content":877},[878],{"type":54,"attrs":879,"content":880},{"textAlign":29},[881],{"text":882,"type":58},"331% ROI means the net return above and beyond the cost of investment is 331% of what was spent, not that total returns are 331% of costs",{"type":162,"content":884},[885],{"type":54,"attrs":886,"content":887},{"textAlign":29},[888],{"text":889,"type":58},"€4.3M NPV represents the absolute economic surplus generated over three years, expressed in today's money",{"type":162,"content":891},[892],{"type":54,"attrs":893,"content":894},{"textAlign":29},[895],{"text":896,"type":58},"Payback in under six months is unusually short for enterprise software, driven by Year 1 risk reduction benefits and rapid procurement efficiency gains",{"type":898},"horizontal_rule",{"type":80,"attrs":900,"content":901},{"level":82,"textAlign":29},[902],{"text":903,"type":58,"marks":904},"Read the full Forrester® TEI study",[905],{"type":88},{"type":54,"attrs":907,"content":908},{"textAlign":29},[909],{"text":910,"type":58},"The full Forrester® Total Economic Impact™ study provides a transparent breakdown of assumptions, financial logic, and risk-adjusted modeling behind the results. See how quantified disruption reduction, compliance automation, and operational efficiency translate into measurable financial impact.",{"type":54,"attrs":912,"content":913},{"textAlign":29},[914],{"text":915,"type":58},"Get the full study and explore what proactive supplier risk management could mean for your organisation.",{"type":54,"attrs":917,"content":918},{"textAlign":29},[919],{"text":920,"type":58,"marks":921},"Download the Forrester® TEI study",[922,924],{"type":63,"attrs":923},{"href":484,"uuid":485,"anchor":29,"target":486,"linktype":487},{"type":88},{"type":54,"attrs":926,"content":927},{"textAlign":29},[928],{"type":493},"Posted April 28, 2026 • 7 min read",{"_uid":931,"title":932,"plugin":432,"og_image":933,"og_title":932,"description":934,"twitter_image":933,"twitter_title":932,"og_description":935,"twitter_description":934},"f1fbc0ea-bbcb-495f-9ae2-ed2f1e3b0864","How to calculate the ROI of supplier risk management - Download Forrester study","https://a.storyblok.com/f/297658/2750x2200/3d6c012840/forrester-blog-banner-4.jpg","Understand the financial model behind Forrester's finding of 331% ROI, €4.3M net present value and payback in under six months with Prewave.\n","Understand the financial model behind Forrester's finding of 331% ROI, €4.3M net present value and payback in under six months with Prewave.",{"id":937,"alt":129,"name":129,"focus":129,"title":129,"source":129,"filename":933,"copyright":129,"fieldtype":439,"meta_data":938,"is_external_url":11},168262818560385,{},[],[941,1382,1694],{"name":942,"created_at":943,"published_at":944,"updated_at":945,"id":946,"uuid":947,"content":948,"slug":1368,"full_slug":1369,"sort_by_date":1370,"position":1371,"tag_list":1372,"is_startpage":11,"parent_id":1373,"meta_data":29,"group_id":1374,"first_published_at":1375,"release_id":29,"lang":35,"path":29,"alternates":1376,"default_full_slug":1369,"translated_slugs":1377,"_stopResolving":43},"85% reduction in supplier risk costs: what does that actually mean?","2026-04-22T12:26:19.518Z","2026-06-03T12:59:02.587Z","2026-06-03T12:59:02.613Z",168637151350758,"fb91bc68-ad41-4e48-a567-5442201d1c57",{"big":11,"_uid":451,"type":949,"pinned":11,"section":950,"tagline":1352,"metatags":1353,"overline":435,"component":436,"thumbnail":1357,"additional_seo":1361,"related_articles":1362,"footer_cta_text_alt":1365},[20],[951],{"_uid":463,"title":942,"content":952,"subtitle":129,"component":428},[953],{"_uid":466,"is_big":11,"content":954,"component":427},{"type":51,"content":955},[956,963,971,979,984,991,998,1003,1060,1070,1075,1083,1088,1094,1099,1104,1109,1111,1118,1123,1125,1132,1139,1143,1149,1172,1179,1181,1188,1195,1199,1205,1210,1217,1219,1226,1233,1237,1239,1244,1249,1272,1279,1281,1288,1325,1326,1332,1336,1340,1348],{"type":54,"attrs":957,"content":958},{"textAlign":29},[959],{"text":960,"type":58,"marks":961},"Independent Forrester® research breaks down how earlier detection and structured mitigation translate into avoided losses.",[962],{"type":88},{"type":54,"attrs":964,"content":965},{"textAlign":29},[966],{"text":480,"type":58,"marks":967},[968,970],{"type":63,"attrs":969},{"href":484,"uuid":485,"anchor":29,"target":486,"linktype":487},{"type":88},{"type":54,"attrs":972,"content":973},{"textAlign":29},[974],{"type":493,"marks":975},[976,978],{"type":63,"attrs":977},{"href":484,"uuid":485,"anchor":29,"target":486,"linktype":487},{"type":88},{"type":54,"attrs":980,"content":981},{"textAlign":29},[982],{"text":983,"type":58},"Supplier disruptions can be devastating, but they are rarely sudden. The problem is that most organisations only learn of them once the damage has reached operations. By then, the only solution is expensive remediation in the form of premium freight, emergency sourcing or production stoppages.",{"type":54,"attrs":985,"content":986},{"textAlign":29},[987,989,990],{"text":988,"type":58},"Forrester’s recent Total Economic Impact™ study of Prewave’s Holistic Supplier Risk Management Platform examines just how much of the financial impact can be avoided by acting earlier.",{"type":493},{"type":493},{"type":80,"attrs":992,"content":993},{"level":82,"textAlign":29},[994],{"text":995,"type":58,"marks":996},"What the study found",[997],{"type":88},{"type":54,"attrs":999,"content":1000},{"textAlign":29},[1001],{"text":1002,"type":58},"Forrester built a composite global manufacturer and applied a risk-adjusted discounted cash flow model across three years. The study identifies four drivers of economic value, of which supplier risk reduction is both the largest and the most direct.",{"type":159,"content":1004},[1005,1016,1027,1038,1049],{"type":162,"content":1006},[1007],{"type":54,"attrs":1008,"content":1009},{"textAlign":29},[1010,1014],{"text":1011,"type":58,"marks":1012},"Risk reduction:",[1013],{"type":88},{"text":1015,"type":58}," €3.2M in risk-adjusted present value",{"type":162,"content":1017},[1018],{"type":54,"attrs":1019,"content":1020},{"textAlign":29},[1021,1025],{"text":1022,"type":58,"marks":1023},"Total study benefits: ",[1024],{"type":88},{"text":1026,"type":58},"€5.6M over three years",{"type":162,"content":1028},[1029],{"type":54,"attrs":1030,"content":1031},{"textAlign":29},[1032,1036],{"text":1033,"type":58,"marks":1034},"Overall ROI:",[1035],{"type":88},{"text":1037,"type":58}," 331%",{"type":162,"content":1039},[1040],{"type":54,"attrs":1041,"content":1042},{"textAlign":29},[1043,1047],{"text":1044,"type":58,"marks":1045},"Payback period:",[1046],{"type":88},{"text":1048,"type":58}," Under six months",{"type":162,"content":1050},[1051],{"type":54,"attrs":1052,"content":1053},{"textAlign":29},[1054,1058],{"text":1055,"type":58,"marks":1056},"Reduction in crisis costs:",[1057],{"type":88},{"text":1059,"type":58}," 85% by year 3",{"type":54,"attrs":1061,"content":1062},{"textAlign":29},[1063,1069],{"type":124,"attrs":1064},{"id":1065,"alt":129,"src":1066,"title":129,"source":129,"copyright":129,"meta_data":1067},160472783094065,"https://a.storyblok.com/f/297658/1643x1217/d16e98d0ab/forrester-reduced-supplier-risk.png",{"size":1068},"1732x1256",{"type":493},{"type":80,"attrs":1071,"content":1072},{"level":633,"textAlign":29},[1073],{"text":1074,"type":58},"Why timing is everything",{"type":54,"attrs":1076,"content":1077},{"textAlign":29},[1078],{"text":1079,"type":58,"marks":1080},"“You get information sometimes one week earlier than you otherwise would. This gives you options. It avoids a lot of expense.”",[1081],{"type":1082},"italic",{"type":54,"attrs":1084,"content":1085},{"textAlign":29},[1086],{"text":1087,"type":58},"CUSTOMER QUOTE FROM THE FORRESTER® TEI STUDY",{"type":54,"attrs":1089,"content":1090},{"textAlign":29},[1091,1092],{"type":493},{"text":1093,"type":58},"Most supplier disruptions originate upstream, not at Tier 1. By the time a risk signal reaches procurement through traditional channels, options are already narrowing. ",{"type":54,"attrs":1095,"content":1096},{"textAlign":29},[1097],{"text":1098,"type":58},"The cost structure of a crisis scales directly with response time. A risk identified a week earlier allows for different mitigation options, from alternative sourcing and inventory adjustment to direct supplier engagement. A risk discovered after production has stopped leaves only expensive reactive responses: premium freight, emergency contracts and general operational upheaval. ",{"type":54,"attrs":1100,"content":1101},{"textAlign":29},[1102],{"text":1103,"type":58},"The problem with most monitoring approaches is that they are structurally late instead of being predictive. Manual checks, fragmented news alerts and periodic audits can only tell you what has already happened. ",{"type":54,"attrs":1105,"content":1106},{"textAlign":29},[1107],{"text":1108,"type":58},"Prewave continuously scans global data sources, links risk signals to named suppliers and maps those signals to the business's actual exposure, so procurement teams can see emerging risk before it becomes operational disruption.",{"type":54,"attrs":1110},{"textAlign":29},{"type":80,"attrs":1112,"content":1113},{"level":633,"textAlign":29},[1114],{"text":1115,"type":58,"marks":1116},"The year-by-year decline in crisis costs",[1117],{"type":88},{"type":54,"attrs":1119,"content":1120},{"textAlign":29},[1121],{"text":1122,"type":58},"The Forrester study models a 0.25% annual supplier crisis rate (a conservative baseline) and tracks how the reduction in crisis costs compounds as visibility and mitigation improve. ",{"type":54,"attrs":1124},{"textAlign":29},{"type":80,"attrs":1126,"content":1127},{"level":633,"textAlign":29},[1128],{"text":1129,"type":58,"marks":1130},"Year 1: 40% reduction by replacing reactive monitoring with structured visibility",[1131],{"type":88},{"type":54,"attrs":1133,"content":1134},{"textAlign":29},[1135],{"text":1136,"type":58,"marks":1137},"“Without supplier visibility, [organizations] were unprepared for such unforeseen crises, which resulted in higher costs and the need to create ad hoc crisis management teams.”",[1138],{"type":1082},{"type":54,"attrs":1140,"content":1141},{"textAlign":29},[1142],{"text":648,"type":58},{"type":54,"attrs":1144,"content":1145},{"textAlign":29},[1146,1147],{"type":493},{"text":1148,"type":58},"The first change is speed. By replacing manual and fragmented tools with centralised AI-driven monitoring, teams gain rapid visibility into specific supplier exposer. Operationally, this means:",{"type":159,"content":1150},[1151,1158,1165],{"type":162,"content":1152},[1153],{"type":54,"attrs":1154,"content":1155},{"textAlign":29},[1156],{"text":1157,"type":58},"Earlier identification of insolvencies, logistics disruptions, labour violations and geopolitical events",{"type":162,"content":1159},[1160],{"type":54,"attrs":1161,"content":1162},{"textAlign":29},[1163],{"text":1164,"type":58},"Structured escalation workflows instead of ad hoc crisis task forces",{"type":162,"content":1166},[1167],{"type":54,"attrs":1168,"content":1169},{"textAlign":29},[1170],{"text":1171,"type":58},"Faster decisions on alternative sourcing, inventory buffers or direct supplier engagement",{"type":54,"attrs":1173,"content":1174},{"textAlign":29},[1175],{"text":1176,"type":58,"marks":1177},"Key result: 40% reduction in crisis-related supplier costs.",[1178],{"type":88},{"type":54,"attrs":1180},{"textAlign":29},{"type":80,"attrs":1182,"content":1183},{"level":633,"textAlign":29},[1184],{"text":1185,"type":58,"marks":1186},"Year 2: 60% reduction from faster response to proactive prevention",[1187],{"type":88},{"type":54,"attrs":1189,"content":1190},{"textAlign":29},[1191],{"text":1192,"type":58,"marks":1193},"“Beginning in Year 2, organizations used the platform to proactively manage and mitigate risks to avoid crises altogether, which was a longer process aligned with broader organizational goals.”",[1194],{"type":1082},{"type":54,"attrs":1196,"content":1197},{"textAlign":29},[1198],{"text":648,"type":58},{"type":54,"attrs":1200,"content":1201},{"textAlign":29},[1202,1203],{"type":493},{"text":1204,"type":58},"With monitoring in place, the focus shifts from managing crises more quickly to avoiding them altogether. Teams have enough lead time to engage suppliers before a risk escalates, rather than after.",{"type":54,"attrs":1206,"content":1207},{"textAlign":29},[1208],{"text":1209,"type":58},"High-risk suppliers are systematically identified and prioritised, and risk criteria are embedded into procurement workflows alongside cost and quality. The ability to predict disruption leads to measurably fewer crises. ",{"type":54,"attrs":1211,"content":1212},{"textAlign":29},[1213],{"text":1214,"type":58,"marks":1215},"Key result: 60% reduction in supplier crisis-related costs.",[1216],{"type":88},{"type":54,"attrs":1218},{"textAlign":29},{"type":80,"attrs":1220,"content":1221},{"level":633,"textAlign":29},[1222],{"text":1223,"type":58,"marks":1224},"Year 3: 85% reduction by extending visibility into Tier-N networks",[1225],{"type":88},{"type":54,"attrs":1227,"content":1228},{"textAlign":29},[1229],{"text":1230,"type":58,"marks":1231},"“Interviewees noted that by implementing the Tier N transparency module, their organizations extended their risk management efforts beyond direct suppliers, which enhanced visibility into their suppliers’ supply chains.”",[1232],{"type":1082},{"type":54,"attrs":1234,"content":1235},{"textAlign":29},[1236],{"text":648,"type":58},{"type":54,"attrs":1238},{"textAlign":29},{"type":54,"attrs":1240,"content":1241},{"textAlign":29},[1242],{"text":1243,"type":58},"Most residual risk at this stage originates upstream, at sub-tier suppliers invisible to Tier 1 monitoring. Prewave’s Tier-N transparency module maps supplier relationships and links risk signals across multiple tiers.",{"type":54,"attrs":1245,"content":1246},{"textAlign":29},[1247],{"text":1248,"type":58},"Organisations can now:",{"type":159,"content":1250},[1251,1258,1265],{"type":162,"content":1252},[1253],{"type":54,"attrs":1254,"content":1255},{"textAlign":29},[1256],{"text":1257,"type":58},"Identify shared upstream dependencies and cluster risk",{"type":162,"content":1259},[1260],{"type":54,"attrs":1261,"content":1262},{"textAlign":29},[1263],{"text":1264,"type":58},"Detect insolvency, geopolitical or regulatory risk in sub-tier suppliers before it reaches operations",{"type":162,"content":1266},[1267],{"type":54,"attrs":1268,"content":1269},{"textAlign":29},[1270],{"text":1271,"type":58},"Model financial exposure per supplier and target mitigation where it matters most",{"type":54,"attrs":1273,"content":1274},{"textAlign":29},[1275],{"text":1276,"type":58,"marks":1277},"Key result: 85% reduction in supplier crisis-related costs.",[1278],{"type":88},{"type":54,"attrs":1280},{"textAlign":29},{"type":80,"attrs":1282,"content":1283},{"level":82,"textAlign":29},[1284],{"text":1285,"type":58,"marks":1286},"Key takeaways",[1287],{"type":88},{"type":159,"content":1289},[1290,1297,1304,1311,1318],{"type":162,"content":1291},[1292],{"type":54,"attrs":1293,"content":1294},{"textAlign":29},[1295],{"text":1296,"type":58},"Supplier risk reduction is the single largest source of financial value in the Forrester study, accounting for €3.2M of €5.6M in total three-year benefits",{"type":162,"content":1298},[1299],{"type":54,"attrs":1300,"content":1301},{"textAlign":29},[1302],{"text":1303,"type":58},"The financial case rests on timing: earlier detection converts expensive reactive responses into lower-cost proactive ones",{"type":162,"content":1305},[1306],{"type":54,"attrs":1307,"content":1308},{"textAlign":29},[1309],{"text":1310,"type":58},"Crisis cost reductions compound year on year as monitoring, mitigation and Tier-N visibility are layered in progressively",{"type":162,"content":1312},[1313],{"type":54,"attrs":1314,"content":1315},{"textAlign":29},[1316],{"text":1317,"type":58},"The study models a conservative 0.25% annual supplier crisis rate; organisations with higher crisis frequency or larger supplier bases can expect proportionally greater returns",{"type":162,"content":1319},[1320],{"type":54,"attrs":1321,"content":1322},{"textAlign":29},[1323],{"text":1324,"type":58},"Payback on the full platform investment occurs in under six months, making supplier risk reduction a rapid-return line item",{"type":898},{"type":80,"attrs":1327,"content":1328},{"level":82,"textAlign":29},[1329],{"text":903,"type":58,"marks":1330},[1331],{"type":88},{"type":54,"attrs":1333,"content":1334},{"textAlign":29},[1335],{"text":910,"type":58},{"type":54,"attrs":1337,"content":1338},{"textAlign":29},[1339],{"text":915,"type":58},{"type":54,"attrs":1341,"content":1342},{"textAlign":29},[1343],{"text":920,"type":58,"marks":1344},[1345,1347],{"type":63,"attrs":1346},{"href":484,"uuid":485,"anchor":29,"target":486,"linktype":487},{"type":88},{"type":54,"attrs":1349,"content":1350},{"textAlign":29},[1351],{"type":493},"Posted March 30, 2026 • 7 min read",{"_uid":931,"title":1354,"plugin":432,"og_image":1355,"og_title":1354,"description":1356,"twitter_image":1355,"twitter_title":1354,"og_description":1356,"twitter_description":1356},"The four pillars of supplier risk management ROI: Forrester® TEI findings - Download now","https://a.storyblok.com/f/297658/2750x2200/aa2d7c5542/forrester-blog-banner.jpg","See how enterprise manufacturers achieve financial return across risk reduction, compliance, procurement efficiency and legacy tool consolidation.\n",{"id":1358,"alt":129,"name":129,"focus":129,"title":129,"source":129,"filename":1359,"copyright":129,"fieldtype":439,"meta_data":1360,"is_external_url":11},160472015446109,"https://a.storyblok.com/f/297658/2750x2200/c7b3fa27b1/forrester-blog-banner-3.jpg",{},[],[1363,449,1364],"dc725e5c-6462-409b-84d3-19c33c07eaec","e15b864f-2ac0-4da7-9f81-0041c1f7becf",{"type":51,"content":1366},[1367],{"type":54},"85-reduction-in-supplier-risk-costs-what-does-that-actually-mean-","resources/blog/85-reduction-in-supplier-risk-costs-what-does-that-actually-mean-","2020-01-01",-540,[],166864166537806,"09f411a0-da7f-4635-8f82-3533e63a3084","2026-05-20T11:21:21.720Z",[],[1378,1380],{"path":1379,"name":29,"lang":39,"published":29},"ressources/blog/85-reduction-in-supplier-risk-costs-what-does-that-actually-mean-",{"path":1381,"name":29,"lang":42,"published":29},"ressourcen/blog/85-reduction-in-supplier-risk-costs-what-does-that-actually-mean-",{"name":1383,"created_at":1384,"published_at":1385,"updated_at":1386,"id":1387,"uuid":1364,"content":1388,"slug":1682,"full_slug":1683,"sort_by_date":1370,"position":1684,"tag_list":1685,"is_startpage":11,"parent_id":1373,"meta_data":29,"group_id":1686,"first_published_at":1687,"release_id":29,"lang":35,"path":29,"alternates":1688,"default_full_slug":1683,"translated_slugs":1689,"_stopResolving":43},"331% ROI: the four ways supplier risk management pays for itself","2026-04-22T12:26:39.486Z","2026-06-03T12:58:32.888Z","2026-06-03T12:58:32.909Z",168637233139719,{"big":11,"_uid":451,"type":1389,"pinned":11,"section":1390,"tagline":1670,"metatags":1671,"overline":435,"component":436,"thumbnail":1674,"additional_seo":1677,"related_articles":1678,"footer_cta_text_alt":1679},[20],[1391],{"_uid":463,"title":1383,"content":1392,"subtitle":129,"component":428},[1393],{"_uid":466,"is_big":11,"content":1394,"component":427},{"type":51,"content":1395},[1396,1402,1410,1418,1423,1428,1433,1442,1449,1455,1460,1467,1471,1473,1478,1483,1488,1490,1497,1504,1508,1510,1515,1520,1526,1533,1540,1544,1546,1551,1556,1561,1563,1570,1577,1581,1583,1588,1593,1598,1600,1606,1643,1644,1650,1654,1658,1666],{"type":54,"attrs":1397,"content":1398},{"textAlign":29},[1399],{"text":960,"type":58,"marks":1400},[1401],{"type":88},{"type":54,"attrs":1403,"content":1404},{"textAlign":29},[1405],{"text":480,"type":58,"marks":1406},[1407,1409],{"type":63,"attrs":1408},{"href":484,"uuid":485,"anchor":29,"target":486,"linktype":487},{"type":88},{"type":54,"attrs":1411,"content":1412},{"textAlign":29},[1413],{"type":493,"marks":1414},[1415,1417],{"type":63,"attrs":1416},{"href":484,"uuid":485,"anchor":29,"target":486,"linktype":487},{"type":88},{"type":54,"attrs":1419,"content":1420},{"textAlign":29},[1421],{"text":1422,"type":58},"When supplier disruption hits, the costs are visible: premium freight, emergency sourcing, production stoppages, cross-functional crisis teams pulled away from other work, and more. What's harder to quantify is the return on preventing those losses in the first place.",{"type":54,"attrs":1424,"content":1425},{"textAlign":29},[1426],{"text":1427,"type":58},"Forrester's independent Total Economic Impact™ study of Prewave's holistic supplier risk management platform draws on interviews with enterprise manufacturers to build a risk-adjusted financial model to translate proactive resilience into measurable economic terms.",{"type":54,"attrs":1429,"content":1430},{"textAlign":29},[1431],{"text":1432,"type":58},"The study identifies four distinct pillars of value, each representing a different way that holistic supplier risk management pays off over three years.",{"type":54,"attrs":1434,"content":1435},{"textAlign":29},[1436,1441],{"type":124,"attrs":1437},{"id":1438,"alt":129,"src":1439,"title":129,"source":129,"copyright":129,"meta_data":1440},160815768278756,"https://a.storyblok.com/f/297658/1646x948/98dc950603/forrester-three-year-benefits.png",{},{"type":493},{"type":80,"attrs":1443,"content":1444},{"level":82,"textAlign":29},[1445],{"text":1446,"type":58,"marks":1447},"The four pillars of quantified value",[1448],{"type":88},{"type":54,"attrs":1450,"content":1451},{"textAlign":29},[1452,1454],{"text":1453,"type":58},"The Forrester® study structures the financial return of holistic supplier risk management across four core pillars, showing how proactive resilience reduces disruption-related losses, strengthens compliance, improves procurement productivity, and eliminates redundant technology costs.",{"type":493},{"type":80,"attrs":1456,"content":1457},{"level":633,"textAlign":29},[1458],{"text":1459,"type":58},"1. Risk reduction",{"type":54,"attrs":1461,"content":1462},{"textAlign":29},[1463],{"text":1464,"type":58,"marks":1465},"“You get information sometimes one week earlier than you otherwise would. This gives you options. It avoids a lot of expense. During the last three years, we spent very little on insolvencies because of the predictive system.”",[1466],{"type":1082},{"type":54,"attrs":1468,"content":1469},{"textAlign":29},[1470],{"text":1087,"type":58},{"type":54,"attrs":1472},{"textAlign":29},{"type":54,"attrs":1474,"content":1475},{"textAlign":29},[1476],{"text":1477,"type":58},"Supplier crises are expensive and often identified too late to prevent real damage. Line stoppages, premium freight, emergency sourcing, and cross-functional crisis teams can quickly drive up costs and disrupt delivery commitments. Even a small number of supplier failures each year can have a measurable financial impact.",{"type":54,"attrs":1479,"content":1480},{"textAlign":29},[1481],{"text":1482,"type":58},"By detecting issues earlier and reducing the impact of disruptions over time, Prewave helps organisations shift from reactive firefighting to proactive mitigation. Prioritised alerting allows teams to focus on the suppliers that matter most.",{"type":54,"attrs":1484,"content":1485},{"textAlign":29},[1486],{"text":1487,"type":58},"Financial impactThe study models a 0.25% annual supplier crisis rate. By reducing the impact of these crises by 40% in Year 1, 60% in Year 2, and 85% in Year 3, organisations can achieve €3.2M in risk-adjusted present value from reduced supplier risk costs.",{"type":54,"attrs":1489},{"textAlign":29},{"type":80,"attrs":1491,"content":1492},{"level":633,"textAlign":29},[1493],{"text":1494,"type":58,"marks":1495},"2. Compliance",[1496],{"type":88},{"type":54,"attrs":1498,"content":1499},{"textAlign":29},[1500],{"text":1501,"type":58,"marks":1502},"“We potentially avoided €8 million in LkSG fines because of BAFA compliance.”",[1503],{"type":1082},{"type":54,"attrs":1505,"content":1506},{"textAlign":29},[1507],{"text":1087,"type":58},{"type":54,"attrs":1509},{"textAlign":29},{"type":54,"attrs":1511,"content":1512},{"textAlign":29},[1513],{"text":1514,"type":58},"Regulatory obligations under frameworks such as LkSG, CSDDD, UFLPA, and EUDR require organisations to demonstrate transparency beyond Tier 1 suppliers. Relying on manual ESG screening increases workload, creates gaps in oversight, and may also expose organisations to significant financial and reputational risk.",{"type":54,"attrs":1516,"content":1517},{"textAlign":29},[1518],{"text":1519,"type":58},"Prewave automates ESG monitoring, supplier risk screening, and documentation workflows within a single platform. Continuous, structured monitoring reduces the need to scale manual compliance efforts while strengthening audit readiness and lowering exposure to regulatory penalties.",{"type":54,"attrs":1521,"content":1522},{"textAlign":29},[1523,1525],{"text":1524,"type":58},"Financial impactThe study quantifies nearly €2M in risk-adjusted present value through avoided compliance headcount expansion and prevention of a €1M regulatory penalty.",{"type":493},{"type":80,"attrs":1527,"content":1528},{"level":633,"textAlign":29},[1529],{"text":1530,"type":58,"marks":1531},"3. Efficiency",[1532],{"type":88},{"type":54,"attrs":1534,"content":1535},{"textAlign":29},[1536],{"text":1537,"type":58,"marks":1538},"“The platform gives the possibility to rank and rate lots of suppliers in almost no time. We get KPIs regarding human risks and environmental risks in our supply chain, and we are able to prioritize and rank them. That saves a lot of time and effort.”",[1539],{"type":1082},{"type":54,"attrs":1541,"content":1542},{"textAlign":29},[1543],{"text":1087,"type":58},{"type":54,"attrs":1545},{"textAlign":29},{"type":54,"attrs":1547,"content":1548},{"textAlign":29},[1549],{"text":1550,"type":58},"Procurement teams often spend a substantial amount of time conducting background checks and manually reviewing supplier information. Without structured monitoring, the same checks are repeated across teams, creating inefficiencies and inconsistent oversight.",{"type":54,"attrs":1552,"content":1553},{"textAlign":29},[1554],{"text":1555,"type":58},"Automated risk scoring and continuous monitoring streamline this process. Instead of reviewing every supplier manually, teams receive prioritised insights that highlight the suppliers and events that require action. ",{"type":54,"attrs":1557,"content":1558},{"textAlign":29},[1559],{"text":1560,"type":58},"Financial impactThe composite organisation reduces supplier background check effort by up to 97.5%, resulting in €292K in risk-adjusted present value over three years.",{"type":54,"attrs":1562},{"textAlign":29},{"type":80,"attrs":1564,"content":1565},{"level":633,"textAlign":29},[1566],{"text":1567,"type":58,"marks":1568},"4. Legacy cost consolidation",[1569],{"type":88},{"type":54,"attrs":1571,"content":1572},{"textAlign":29},[1573],{"text":1574,"type":58,"marks":1575},"“We replaced [approximately] €75,000 in legacy tools: €25,000 for [one vendor ] and €50,000 to €60,000 for [another]. Even though Prewave costs more overall, there are some cost savings.”",[1576],{"type":1082},{"type":54,"attrs":1578,"content":1579},{"textAlign":29},[1580],{"text":1087,"type":58},{"type":54,"attrs":1582},{"textAlign":29},{"type":54,"attrs":1584,"content":1585},{"textAlign":29},[1586],{"text":1587,"type":58},"Many organisations rely on separate tools for risk monitoring, sustainability tracking, and compliance reporting. Over time, this creates overlapping functionality, higher licensing costs, and disconnected data streams that can be difficult to reconcile.",{"type":54,"attrs":1589,"content":1590},{"textAlign":29},[1591],{"text":1592,"type":58},"Fragmented systems also slow decision-making. When risk, compliance, and supplier information sit in different platforms, teams lack a unified view of exposure. By consolidating capabilities with Prewave, organisations can reduce complexity and costs while improving overall visibility and control.",{"type":54,"attrs":1594,"content":1595},{"textAlign":29},[1596],{"text":1597,"type":58},"Financial impactThe study identifies €119K in risk-adjusted present value from legacy tool decommissioning across three years.",{"type":54,"attrs":1599},{"textAlign":29},{"type":80,"attrs":1601,"content":1602},{"level":82,"textAlign":29},[1603],{"text":857,"type":58,"marks":1604},[1605],{"type":88},{"type":159,"content":1607},[1608,1615,1622,1629,1636],{"type":162,"content":1609},[1610],{"type":54,"attrs":1611,"content":1612},{"textAlign":29},[1613],{"text":1614,"type":58},"Supplier risk management delivers quantifiable financial return across four distinct areas: risk reduction, compliance, procurement efficiency and legacy tool consolidation.",{"type":162,"content":1616},[1617],{"type":54,"attrs":1618,"content":1619},{"textAlign":29},[1620],{"text":1621,"type":58},"The greatest single source of value is reduced supplier risk, with an 85% reduction in crisis-related costs achievable by Year 3.",{"type":162,"content":1623},[1624],{"type":54,"attrs":1625,"content":1626},{"textAlign":29},[1627],{"text":1628,"type":58},"Compliance is the second-largest value driver, worth nearly €2 million over three years, driven largely by the avoided cost of regulatory penalties.",{"type":162,"content":1630},[1631],{"type":54,"attrs":1632,"content":1633},{"textAlign":29},[1634],{"text":1635,"type":58},"Procurement efficiency gains are realised quickly: a 95% reduction in supplier background check effort from Year 1.",{"type":162,"content":1637},[1638],{"type":54,"attrs":1639,"content":1640},{"textAlign":29},[1641],{"text":1642,"type":58},"The investment pays back in under six months, with total three-year benefits of €5.6 million against costs of €1.3 million.",{"type":898},{"type":80,"attrs":1645,"content":1646},{"level":82,"textAlign":29},[1647],{"text":903,"type":58,"marks":1648},[1649],{"type":88},{"type":54,"attrs":1651,"content":1652},{"textAlign":29},[1653],{"text":910,"type":58},{"type":54,"attrs":1655,"content":1656},{"textAlign":29},[1657],{"text":915,"type":58},{"type":54,"attrs":1659,"content":1660},{"textAlign":29},[1661],{"text":920,"type":58,"marks":1662},[1663,1665],{"type":63,"attrs":1664},{"href":484,"uuid":485,"anchor":29,"target":486,"linktype":487},{"type":88},{"type":54,"attrs":1667,"content":1668},{"textAlign":29},[1669],{"type":493},"Posted March 31, 2026 • 7 min read",{"_uid":931,"title":1672,"plugin":432,"og_image":1359,"og_title":1672,"description":1673,"twitter_image":1359,"twitter_title":1672,"og_description":1673,"twitter_description":1673},"How Prewave reduces supplier risk costs by 85% - Download Forrester study","An independent Forrester® Total Economic Impact™ study found that Prewave customers reduced supplier risk–related costs by 85% over three years.",{"id":1675,"alt":129,"name":129,"focus":129,"title":129,"source":129,"filename":1355,"copyright":129,"fieldtype":439,"meta_data":1676,"is_external_url":11},160816596576153,{},[],[1363,947,449],{"type":51,"content":1680},[1681],{"type":54},"331-roi-the-four-ways-supplier-risk-management-pays-for-itself","resources/blog/331-roi-the-four-ways-supplier-risk-management-pays-for-itself",-520,[],"1109468a-cf90-4190-b7ff-32ead2c10f49","2026-05-20T11:21:22.028Z",[],[1690,1692],{"path":1691,"name":29,"lang":39,"published":29},"ressources/blog/331-roi-the-four-ways-supplier-risk-management-pays-for-itself",{"path":1693,"name":29,"lang":42,"published":29},"ressourcen/blog/331-roi-the-four-ways-supplier-risk-management-pays-for-itself",{"name":1695,"created_at":1696,"published_at":1697,"updated_at":1698,"id":1699,"uuid":1363,"content":1700,"slug":2028,"full_slug":2029,"sort_by_date":2030,"position":2031,"tag_list":2032,"is_startpage":11,"parent_id":2033,"meta_data":29,"group_id":2034,"first_published_at":2035,"release_id":29,"lang":35,"path":29,"alternates":2036,"default_full_slug":2029,"translated_slugs":2037,"_stopResolving":43},"Forrester TEI Study: What is the ROI of Prewave’s Holistic Supplier Risk Management?","2026-05-06T07:34:11.668Z","2026-05-26T15:07:05.087Z","2026-05-26T15:07:05.106Z",173519878887330,{"big":11,"_uid":451,"type":1701,"pinned":11,"section":1703,"tagline":2014,"metatags":2015,"overline":2019,"component":436,"thumbnail":2020,"additional_seo":2023,"related_articles":2024,"footer_cta_text_alt":2025},[1702],"caaa14d6-ad7d-4571-8cac-c12f74cbf6f8",[1704],{"_uid":463,"title":1695,"content":1705,"subtitle":129,"component":428},[1706],{"_uid":466,"is_big":11,"content":1707,"component":427},{"type":51,"content":1708},[1709,1716,1724,1732,1737,1742,1749,1756,1812,1822,1832,1838,1843,1848,1850,1857,1866,1872,1877,1882,1918,1926,1934,1941,1945,1951,1982,1987,1988,1994,1998,2002,2010],{"type":54,"attrs":1710,"content":1711},{"textAlign":29},[1712],{"text":1713,"type":58,"marks":1714},"An independent Forrester® study shows 331% ROI, €5.6M in quantified benefits, and payback in under six months with Prewave.",[1715],{"type":88},{"type":54,"attrs":1717,"content":1718},{"textAlign":29},[1719],{"text":480,"type":58,"marks":1720},[1721,1723],{"type":63,"attrs":1722},{"href":484,"uuid":485,"anchor":29,"target":486,"linktype":487},{"type":88},{"type":54,"attrs":1725,"content":1726},{"textAlign":29},[1727],{"type":493,"marks":1728},[1729,1731],{"type":63,"attrs":1730},{"href":484,"uuid":485,"anchor":29,"target":486,"linktype":487},{"type":88},{"type":54,"attrs":1733,"content":1734},{"textAlign":29},[1735],{"text":1736,"type":58},"Supplier risk management is widely recognised as critical to operational continuity. Disruptions, regulatory penalties, expedited freight, and emergency sourcing all carry measurable costs. But proving how proactive risk visibility translates into avoided losses and margin protection can be difficult without a structured financial model.",{"type":54,"attrs":1738,"content":1739},{"textAlign":29},[1740],{"text":1741,"type":58},"Recently, Forrester conducted an independent Total Economic Impact™ (TEI) study of Prewave’s holistic supplier risk management platform. Based on interviews with enterprise customers, the study applies a risk-adjusted discounted cash flow model to quantify impact over three years.",{"type":54,"attrs":1743,"content":1744},{"textAlign":29},[1745,1747,1748],{"text":1746,"type":58},"The result is a CFO-ready analysis of ROI across risk reduction, compliance, and efficiency.",{"type":493},{"type":493},{"type":80,"attrs":1750,"content":1751},{"level":82,"textAlign":29},[1752],{"text":1753,"type":58,"marks":1754},"Key stats at a glance",[1755],{"type":88},{"type":159,"content":1757},[1758,1765,1772,1778,1784,1791,1798,1805],{"type":162,"content":1759},[1760],{"type":54,"attrs":1761,"content":1762},{"textAlign":29},[1763],{"text":1764,"type":58},"331% ROI over three years",{"type":162,"content":1766},[1767],{"type":54,"attrs":1768,"content":1769},{"textAlign":29},[1770],{"text":1771,"type":58},"€5.6M total quantified benefits (PV)",{"type":162,"content":1773},[1774],{"type":54,"attrs":1775,"content":1776},{"textAlign":29},[1777],{"text":680,"type":58},{"type":162,"content":1779},[1780],{"type":54,"attrs":1781,"content":1782},{"textAlign":29},[1783],{"text":541,"type":58},{"type":162,"content":1785},[1786],{"type":54,"attrs":1787,"content":1788},{"textAlign":29},[1789],{"text":1790,"type":58},"85% reduction in supplier crisis–related costs by year three",{"type":162,"content":1792},[1793],{"type":54,"attrs":1794,"content":1795},{"textAlign":29},[1796],{"text":1797,"type":58},"Up to 97.5% reduction in supplier background check effort",{"type":162,"content":1799},[1800],{"type":54,"attrs":1801,"content":1802},{"textAlign":29},[1803],{"text":1804,"type":58},"€292K in procurement efficiency gains within three years",{"type":162,"content":1806},[1807],{"type":54,"attrs":1808,"content":1809},{"textAlign":29},[1810],{"text":1811,"type":58},"€119K in legacy tool cost savings within three years",{"type":80,"attrs":1813,"content":1814},{"level":82,"textAlign":29},[1815,1818],{"type":493,"marks":1816},[1817],{"type":88},{"text":1819,"type":58,"marks":1820},"The business risks organisations are facing",[1821],{"type":88},{"type":54,"attrs":1823,"content":1824},{"textAlign":29},[1825,1829,1830,1831],{"text":1826,"type":58,"marks":1827},"“We had no standards and risk-handling was reactive. [There was] lots of troubleshooting, we could not foresee insolvencies, and [there were] other issues. Every purchaser did their own thing in their own way. When evaluating suppliers, we only looked at price and quality. We needed to add risk and sustainability factors into this. From time to time, we would have production disruptions.”",[1828],{"type":1082},{"type":493},{"type":493},{"text":1087,"type":58},{"type":54,"attrs":1833,"content":1834},{"textAlign":29},[1835,1836],{"type":493},{"text":1837,"type":58},"Before investing in Prewave, the organisations interviewed described similar challenges. Supplier risk was clearly increasing, but their ability to manage it remained largely reactive. Issues were often discovered only after they had already affected production, delivery, or cost.",{"type":54,"attrs":1839,"content":1840},{"textAlign":29},[1841],{"text":1842,"type":58},"When suppliers failed, the financial consequences were immediate, and visibility gaps made the situation harder. Without insight beyond Tier 1 suppliers, procurement teams relied on manual interventions across fragmented tools. At the same time, ESG and due diligence requirements were expanding, demanding greater transparency and stronger documentation.",{"type":54,"attrs":1844,"content":1845},{"textAlign":29},[1846],{"text":1847,"type":58},"Leaders recognised that risk was becoming a financial issue, not just an operational one. The question was how to measure the return on investing in resilience.",{"type":54,"attrs":1849},{"textAlign":29},{"type":80,"attrs":1851,"content":1852},{"level":82,"textAlign":29},[1853],{"text":1854,"type":58,"marks":1855},"How the study models year-by-year value",[1856],{"type":88},{"type":54,"attrs":1858,"content":1859},{"textAlign":29},[1860,1863,1864,1865],{"text":1464,"type":58,"marks":1861},[1862],{"type":1082},{"type":493},{"type":493},{"text":1087,"type":58},{"type":54,"attrs":1867,"content":1868},{"textAlign":29},[1869,1870],{"type":493},{"text":1871,"type":58},"The Forrester study is grounded in interviews with Prewave customers and internal stakeholders. From these discussions, Forrester built a composite global manufacturer reflecting the scale and challenges described during the research.",{"type":54,"attrs":1873,"content":1874},{"textAlign":29},[1875],{"text":1876,"type":58},"Using this profile, Forrester applied its TEI methodology to project costs and benefits across three years, incorporating conservative assumptions and risk adjustments.",{"type":54,"attrs":1878,"content":1879},{"textAlign":29},[1880],{"text":1881,"type":58},"The transformation unfolds in phases:",{"type":159,"content":1883},[1884,1896,1907],{"type":162,"content":1885},[1886],{"type":54,"attrs":1887,"content":1888},{"textAlign":29},[1889,1893,1894],{"text":1890,"type":58,"marks":1891},"Year 1: Establishing visibility. ",[1892],{"type":88},{"type":493},{"text":1895,"type":58},"Real-time monitoring and prioritised alerts replace fragmented manual processes, delivering early disruption cost reduction.",{"type":162,"content":1897},[1898],{"type":54,"attrs":1899,"content":1900},{"textAlign":29},[1901,1905],{"text":1902,"type":58,"marks":1903},"Year 2: Strengthening oversight. ",[1904],{"type":88},{"text":1906,"type":58},"Structured ESG and compliance workflows reduce manual workload and improve transparency.",{"type":162,"content":1908},[1909],{"type":54,"attrs":1910,"content":1911},{"textAlign":29},[1912,1916],{"text":1913,"type":58,"marks":1914},"Year 3: Expanding into Tier-N networks. ",[1915],{"type":88},{"text":1917,"type":58},"Deeper visibility into sub-tier suppliers significantly lowers supplier-related risk exposure.",{"type":54,"attrs":1919,"content":1920},{"textAlign":29},[1921],{"type":124,"attrs":1922},{"id":1923,"alt":129,"src":1924,"title":129,"source":129,"copyright":129,"meta_data":1925},146668502780147,"https://a.storyblok.com/f/297658/1669x914/09984aa29e/forrester-financial-summary.png",{},{"type":80,"attrs":1927,"content":1928},{"level":82,"textAlign":29},[1929,1930],{"type":493},{"text":1931,"type":58,"marks":1932},"Four ways supplier risk management delivers measurable return",[1933],{"type":88},{"type":54,"attrs":1935,"content":1936},{"textAlign":29},[1937],{"text":1938,"type":58,"marks":1939},"“Each interviewee said that by investing in Prewave, their organization reduced costs related to supplier risk, which they consider to be the largest benefit in some 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