SourceDay helps procurement and supply chain teams proactively identify and manage risks that can impact on-time delivery, supplier collaboration, and material predictability. SourceDay Intelligence (SDI) uncovers and highlights predictive risks that can only be detected by our patent-pending ML platform.
Risks in SourceDay are grouped into three categories:
- PO Collaboration risks — supplier responses and PO changes that require buyer attention.
- Supplier risks — supplier communication or onboarding issues that can disrupt collaboration.
- Item risks — risks related to delivery timing, lead time trends, or price changes.
By monitoring risks across these areas, teams can quickly prioritize actions, reduce disruptions, and improve supply chain performance.
View risks in SourceDay
You can monitor risks from:
- The PO Dashboard
- Supplier dashboards and scorecards
- Item Predictability dashboards
- Risk reports and notifications
Risk indicators help teams focus on:
- Orders requiring immediate action
- Suppliers with collaboration issues
- Items with increasing lead time or pricing volatility
PO Collaboration risks
PO Collaboration risks identify purchase order activity that may impact delivery schedules, inventory availability, or supplier alignment.
These risks help buyers quickly identify orders that require review or action.
| Risk | Description |
|---|---|
| Proposed change | A supplier has proposed a change to the PO, such as quantity, price, or delivery date. |
| Rejected change | A supplier rejected a PO update sent from the ERP or SourceDay. |
| Cancellation | A supplier proposed canceling all or part of a purchase order. |
| Split order | A supplier proposed splitting a shipment or delivery into multiple deliveries. |
| Unsynced changes | Changes in SourceDay have not successfully synchronized with the ERP system. |
These risks are typically managed from the PO Dashboard or directly within the purchase order.
Learn more about PO Risks → PO Collaboration Risks
Supplier risks
Supplier risks identify communication, onboarding, or supplier collaboration issues that may prevent suppliers from responding to orders effectively.
| Risk | Description |
|---|---|
| Email notification warning/failure | Supplier email notifications failed or may not be reaching supplier contacts. |
| New email detected | A supplier responded using an email address not currently associated with their supplier profile. |
| Uninvited supplier | A supplier has not yet been invited or activated in SourceDay collaboration workflows. |
Supplier risks help teams ensure suppliers can successfully receive, review, and respond to purchase orders.
*Supplier risks can be deferred to a specific date and time to be reviewed later.
Learn more about Supplier Risks → Supplier risks
Item risks
Item risks help identify materials that may become delivery, inventory, or cost concerns based on supplier performance and item trends.
| Risk | Description |
|---|---|
| Lead time risk | Predicted lead times indicate the item may arrive later than expected based on historical supplier performance and current trends. |
| Item arriving early | The item is projected to arrive earlier than required demand or planning dates. |
| Item arriving late | The item is projected to arrive after the required demand or planning dates. |
| Price increasing | Item pricing trends indicate the supplier price is increasing. |
| Master price issue | The PO price differs from the ERP or expected master item price. |
Item risks help procurement teams proactively manage:
- Inventory availability
- Supplier lead time variability
- Material shortages
- Price volatility
*Item risks can be deferred to a specific date and time to be reviewed later.
Learn more about Item Risks → Item Risks
Recommended risk management workflow
SourceDay recommends reviewing risks regularly as part of daily procurement operations.
Daily activities
- Review new PO Collaboration risks
- Resolve supplier communication issues
- Prioritize urgent delivery risks
Weekly activities
- Review supplier performance trends
- Analyze item lead time changes
- Monitor price volatility and master price discrepancies
- Item & supplier risks can be deferred to a specific date and time to be reviewed later
Ongoing activities
- Collaborate with suppliers on delivery expectations
- Update supplier contacts and onboarding status
- Use predictive insights to reduce late deliveries and expedite risk resolution
Best practices for managing risks
To improve on-time delivery performance:
- Encourage suppliers to respond directly in SourceDay
- Review proposed supplier changes promptly
- Monitor high-risk suppliers and items regularly
- Resolve unsynced ERP changes quickly
- Use Item Predictability insights to proactively manage shortages and delays
- Maintain accurate supplier contact information