28 Mar 19

5 steps to managing supplier risk and compliance

stepsUnderstanding risk and compliance across your supply chain is now essential for any business. By successfully measuring and understanding supplier compliance can ensure that risks are identified, managed and mitigated.

Below, Greenstone outlines five key steps to help you shape your supplier due diligence process to ensure that you are managing your suppliers effectively.

1. Define what information you need to collect 

It is important to establish the data you need to collect, and why. A good start is to ask questions such as: What supplier information is material to your organisation? Do different supplier groups or categories have different compliance requirements? Do the reporting frameworks you use dictate the information required?

2. Engage your organisation 

In order to be successful you need internal engagement at all levels. All relevant parts of the business need to understand their role in supporting the supplier management programme from initial contact through to supplier development.


3. Prioritise your suppliers
 

You probably won’t be able to engage all of your suppliers at once. Prioritise and segment your supplier list into groups using factors such as risk, spend, legislation or performance level.

4. Identify the solution that best suits your needs 

Online solutions provide the best way to achieve high levels of coverage and compliance, giving you the analytical tools you need to identify risk efficiently. They all vary so finding the right one to suit your needs is important.


5. Define processes for dealing with supplier responses
 

The most important point from both a buyer and supplier perspective is to use the data collected. There should be assigned responsibility within the business for dealing with any non-compliance in specific areas, and there may be a need for a minimum overall standard for suppliers to meet.

 

New call-to-action

Supplier Compliance , Supplier Data , SupplierPortal

Subscribe to Email Updates