Managing supplier risk and value: making the most of supplier information
Managing supplier information and screening for ethical business practices is expected by regulators and consumers says Costas Xyloyiannis, CEO of HICX. Having good supplier management processes in place can help organizations stay ahead of regulators to avoid costly fines, minimize reputational damage and reduce friction in the buyer-supplier relationship.
What was once nice-to-have information has now been defined by law. As concern grows around modern slavery, GDPR, conflict minerals and climate change, governments and related third parties are demanding – with regulatory backing – that businesses ensure ethical supply chains.
To mitigate regulatory and reputational cost, organizations need robust, accurate and extensive supplier information. For those with large complex supply chains, this is no mean feat. But apart from alleviating risk, getting your supplier information ducks in a row can also drive value.
So, how can organizations take full advantage of the information their suppliers provide?