Managing Supplier Risk: It’s All About the Information
By Costas Xyloyiannis, CEO of HICX
What was once “nice to have” information has been defined by law. As social and environmental concerns grow, governments and related third parties are demanding, with regulatory backing, that businesses manage ethical supply chains. What can large organizations with complex supply chains do to help mitigate supplier risk?
Regulations demand that organizations provide and fully understand certain supplier information. Getting this wrong can result in penalties that range from fines running into millions of dollars to exclusion from bidding for government contracts. It also can damage business reputation; a recent Deloitte study reveals that 45% of Gen Z consumers stopped purchasing certain brands because of ethical or sustainability concerns.