Supply Chain Servicing for Wealth and Asset Managers

In the realm of wealth and asset management, the term “supply chain” might not be as frequently mentioned as “portfolios” or “investment strategies.” Nevertheless, supply chain management is becoming increasingly vital for firms in this sector. Just like the interconnected process of moving goods from factories to consumers in traditional supply chains, wealth and asset management firms have their own intricate web of services and products that need to be efficiently managed.

Before we delve deeper, let’s clarify what Supply-Chain-as-a-Service (SCaaS) is. SCaaS offers an all-encompassing, outsourced model for supply chain management, providing end-to-end visibility and real-time data. How is this relevant to wealth and asset managers? Consider the ‘supply chain’ in asset management as the flow of information, analytics, advice, and investment products to the end-client. The SCaaS model could offer a framework for optimising this flow.

Disruptions can hit supply chains unexpectedly, as proven by events like the Suez Canal blockage or COVID-19. In wealth and asset management, similar disruptions could come from sudden regulatory changes, market crashes, or cyber-attacks. Servicing your supply chain through robust technology solutions, like VENDOR iQ, can help build a resilient business model prepared for such shocks.

Issues detected later in a supply chain are costlier to fix. For wealth and asset managers, a lack of end-to-end visibility in your vendors can result in expensive errors, including compliance fines, a loss of client trust, or missed investment opportunities.

69% of companies lack a holistic view of their supply chain, and 63% don’t have tech systems in place to monitor performance. VENDOR iQ offers a platform that eliminates guesswork from contingency planning through real-time data and expert insights, enabling firms to confidently navigate vendor transitions and assess potential risks and rewards.

Modern supply chain technology can significantly improve efficiency and oversight. Integrated platforms like VENDOR iQ not only offer real-time monitoring but also facilitate simulation exercises aligned with your internal processes and existing vendors, making responses swifter and more coordinated in a real crisis.

Sophisticated tools like VENDOR iQ provide real-time alerts that go beyond basic performance metrics to include regulatory shifts and notable management changes. The platform’s Governance and SLA modules offer real-time reporting and frameworks that enhance vendor oversight, enabling you to avoid last-minute, costly surprises related to your vendor relationships.

While they may not deal in physical goods, wealth and asset management firms have much to gain by servicing their supply chains. Adopting strategies and technologies that offer end-to-end visibility and real-time alerts, such as those provided by VENDOR iQ, can significantly improve operational efficiency, customer satisfaction, and resilience to unexpected disruptions. Just as SCaaS has revolutionised traditional industries, taking a similar approach in the financial sector could be a game-changer.