In the ever-evolving travel and hospitality landscape, companies are constantly navigating a complex network of suppliers to ensure seamless operations and superior customer experiences. A critical challenge in this dynamic environment lies in effectively assessing the myriad risks associated with their extensive supplier networks.
This blog sheds light on the transformative potential of integrating Artificial Intelligence (AI) and Human Intelligence (HI) within a unified platform to revolutionize how travel companies evaluate and manage supplier risks.
The Need for Smart Platforms Driven by AI and HI
Consider the example of a leading US airline. It strives to diligently monitor risks within its extensive supplier network, comprising thousands of diverse suppliers scattered across global locations. Its supplier risks extend across various dimensions – operational, financial, cyber and more. The need for a comprehensive risk assessment is paramount, especially given the numerous suppliers involved in their operations, ranging from IT services to aircraft manufacturers.
In addressing this challenge, the airline adopts a sophisticated risk monitoring platform that harnesses the power of data analytics, AI and expert insights. This platform goes beyond traditional methods, incorporating recent incidents, operational intricacies, financial stability and cybersecurity considerations into a holistic evaluation of each supplier's risk profile.
Figure 1: AI and HI Powered Risk Monitoring Solution
While algorithms and advanced analytics scrutinize supplier risks based on diverse parameters, human specialists meticulously curate and analyze the findings. This synergistic collaboration between AI and HI proves to be a formidable force, efficiently identifying risks and transforming data into actionable insights, enhancing business resilience.
Unique Advantages of This Platform-based Approach
Let's delve into the six distinctive advantages that set this platform-based approach apart, offering a transformative solution to the supply chain complexities of the dynamic travel and hospitality industry.
Figure 2: A Comprehensive Risk Assessment Framework
Holistic Risk Insights:
What differentiates this approach is its ability to distill myriad risk factors into a coherent and easily understandable score. This score serves as a compass, offering insights into the potential challenges linked with every supplier. It becomes a valuable tool for informed decision-making and the proactive mitigation of risks, allowing companies to navigate uncertainties with precision.
Dynamic and Real-time Risk Evaluation:
AI ensures the real-time tracking of potential risks associated with suppliers, offering companies unparalleled visibility into evolving scenarios.
Inclusive Supplier Coverage:
Such platforms offer a comprehensive risk assessment strategy that transcends supplier types (e.g., public, private), nature of activity, location and data availability. This approach ensures a holistic view of potential vulnerabilities.
Transparency at the Core:
A transparent assessment framework is integral to this approach. Concise notes accompany each risk metric, and the sources of information are laid bare. This transparency extends to the aggregation of risks and sub-risks, fostering a clear understanding of the risk landscape.
Intelligent Amplification for Proactive Risk Management:
The future of risk management lies in intelligent amplification. A machine-driven risk score amplification outshines traditional weight-based models, swiftly elevating high-risk elements and enabling proactive risk mitigation.
Adaptability for Diverse Business Objectives:
Recognizing the diversity of businesses, this approach allows for flexible configuration. It adjusts risk and sub-risk weights, coverage and data sources to align with the distinctive objectives and priorities of each organization.
The Imperative to Embrace a Holistic Approach to Supplier Risk Management
In the face of rapid digitization and evolving consumer expectations, robust enterprise supplier risk management is more imperative than ever in the travel industry. Integrating AI and human intervention emerges as a smart solution, providing a dynamic framework for proactive risk identification and strategic decision-making. By harnessing the power of advanced analytics and human expertise, organizations can achieve unprecedented visibility into their supplier networks, navigating uncertainties with agility and foresight.
The call to embrace a holistic approach also emphasizes the importance of collaboration with strategic partners who can seamlessly combine domain expertise and technological prowess. This collaborative synergy strengthens risk management capabilities, fostering adaptive resilience within organizations. Through innovative approaches, travel and hospitality organizations can not only mitigate disruptions but also seize opportunities for sustainable growth and unparalleled customer experiences in the dynamic landscape of tomorrow.
Explore how WNS’ end-to-end portfolio of intelligent Strategic Sourcing and Procurement solutions, including The Smart Cube, can help you manage risks and transform decision-making.