Listen to TYS & Moody’s Analytics discuss risk & compliance management on the Sourcing Industry Landscape podcast: https://youtu.be/LnkmRSeo6Gw
Listen to TYS & Moody’s Analytics discuss risk & compliance management on the Sourcing Industry Landscape podcast: https://youtu.be/LnkmRSeo6Gw

“Glocal” Supplier Management – Balancing Global and Local Requirements

For enterprise organizations, globalization adds complexity with a need to assess suppliers across a broad spectrum of subject areas to ensure compliance with both global regulations and regional operating requirements. Local regulations and laws require procurement organizations to take into consideration any specific needs, often complicating the process of engagement or risk management. 

How do you ensure suppliers are compliant and operating responsibly no matter where they are in the world?   

Trust Your Supplier is a “Glocal” solution that allows procurement organizations to manage multiple, complex risk areas efficiently while establishing relationships with suppliers anywhere in the world. Here’s how… 

  1. Standardized Questionnaires – TYS is guided by a Governance Board of Fortune 500 companies that provided input to our standardized compliance questionnaires. By collaborating across and within industries, these questionnaires were built to support global, local and industry requirements while reducing the number of overall questions suppliers are required to complete.
  2. Custom Questionnaires – Organizations may have unique regional and global requirements for risk management. TYS offers custom questionnaires to support any regulatory requirements that may not be covered with a standardized questionnaire.
  3. Questionnaire Groups – Buyers can select any combination of questionnaires to form a Questionnaire group. These groups can be based on common requirements for location, product or service, or other features. During the onboarding process, suppliers can easily be assigned into the appropriate Questionnaire Group, simplifying the process and ensuring the relevant questionnaires are required for that supplier. This strategy targets segments of suppliers for customized risk assessments appropriate for that segment.
  4. Integrated Risk Data – TYS partners with industry-leading third-party validators that offer a variety of risk data on companies from around the world. This information is integrated into supplier profiles for an enriched view of each supplier. 

 This flexible, standardized approach, combined with integrated third-party risk data, provides procurement organizations with a 360° view of their suppliers no matter where they are located in the world. 

FAQ: What is the Importance of Standardization?

Frequently Asked Question: What is the importance of standardization?

Trust Your Supplier has endeavored to bring together buyer organizations across and within industries to determine the best practices and key questions needed to ensure supplier questionnaires address compliance and risk perspectives. Our questionnaires were built with key regulatory questions that address global, local and industry specific requirements. 

These standardized questionnaires and workflows reduce onboarding time by allowing suppliers to focus on any unique questions without having to readdress shared questions. This gives suppliers a better experience overall, while reducing time, effort and costs for both parties. Internally, organizations can move in an agile way to get the suppliers they need and meet their goals & deadlines. 

Watch this short video to learn more. https://trustyoursupplier.com/resources/cycle-time/ 

FAQ: Why Supplier Management?

Frequently Asked Question: Why did Trust Your Supplier choose to tackle supplier management?

We realized that there was a large gap in the reliability of supplier data. With today’s supply chain risks, volatility in supply, and the increased regulatory situation, traditional methods to discover, onboard and monitor suppliers can’t keep up with the pace of changing information. 

Fundamental to all supply chains is the “supplier”. Globalization requires proper vetting and risk assessment of suppliers across a broad spectrum of subject areas to ensure trust, transparency, and compliance with global regulations 

The pandemic has demonstrated that a lack of supplier diversity and reliance on one or two concentrated suppliers can lead to a total supply disruption, higher costs, and process inefficiencies. As part of their material risk and qualification assessments, investors, buyers, and consumers are requiring suppliers to demonstrate ESG and sustainability initiatives.  

Our parent company, Chainyard, believes that a blockchain-powered solution such as Trust Your Supplier is foundational to the future of supplier management. 

Good Advice From Joyce Harkness

In the United States, we will be celebrating Thanksgiving this week. Our time is spent sharing food and other traditions with family and friends.  As I’ve been making preparations, I remembered some family-themed advice given to me by Joyce Harkness. 

Joyce joined me on an episode of the Procurement Block podcast and as a single, working mother offered up this tip for managing work and family:  “We have a shared online family calendar. At the beginning of each school year, we would put the usual school and family events in the calendar. And then it helps us then have conversations about who’s attending what.”

Joyce was such a pleasure to have on the show. If you haven’t had a chance to listen to her episode on Supplier Information Management, you can check it on below.

Happy Thanksgiving!

https://trustyoursupplier.com/procurement-block/podcast-s1e4/ 

Good Advice: Supplier Financial Health

Sometimes we have a tendency to put off important, regular tasks as a way of avoiding the possibility of negative information.  Not scheduling a medical check-up  or delaying a review of your bank statement and bills doesn’t change what’s there. It merely limits the time you have to take any needed actions.

A few weeks ago, Eric Evans and I had a conversation about supplier financial health. He gave me and our podcast listeners some really good advice to look “at getting your digital house in order, data hygiene, and then really hooking this into your workflow and process to make it much more automated so you don’t have to think about it.”

Get the boost you need to tackle his suggestions for visibility & monitoring of the financial health of your suppliers – listen here:

https://trustyoursupplier.com/procurement-block/podcast-s1e3/ 

Procurement challenges that could impact business profitability and continuity are solved by Trust Your Supplier

By Praveen Rao
Managing Director, Supply Chain Solutions and Partnerships
IBM Industry Platforms

Today’s businesses are operating in an increasingly complex world in which risk and volatility are putting new pressure on day-to-day business operations. A study by IBM indicates businesses are spending more than 50 percent of their revenues on procuring goods and services from their supplier base. Leading procurement organizations must excel in the fundamentals of reducing cost, ensuring compliance, driving performance and ensuring innovations in the supply base.  

In today’s procurement world, a keystone in the sourcing strategy is to have vendor management methods that foster engaging with the right suppliers at minimal cost. This involves managing all aspects of supplier lifecycle from discovery and qualification to onboarding and monitoring.  

Continuous monitoring of the supplier performance in today’s fast-paced and global environment, along with supplier rationalization as a key piece of strategy, must be considered by procurement organizations to innovate in driving better supplier management. In our conversations with large procurement organizations, these are some of the top procurement challenges for 2021 and beyond: 

  • Reduce spend cost
  • Lack of resiliency in supply chains
  • Lack of risk mitigation around onboarding unfavorable suppliers
  • Outdated procurement systems
  • Lack of analytics for insights around supplier performance
  • Not enough focus on sustainability and diversity of supplier base
  • Dark purchasing that happens outside the approved procurement processes 

So how do procurement organizations drive change to face these challenges? Trust Your Supplier (TYS) works with a network of enterprise buyer organizations to bring digital transformation to their industries. As an integral part of their strategy, the TYS blockchain platform is bringing transparency and supplier visibility at every touchpoint. The supplier owned profile, with information needed for onboarding and qualification, can be cross referenced against industry recognized validators to reduce your organization’s overall procurement cost and to support compliance activities such as diversity, sustainability, cyber security, and anti-corruption. 

TYS boasts a rich marketplace of business partners that cater to evolving risks such as:  supplier Identity, firmographics, financial, sustainability, cybersecurity, governmental sanctions, compliance and screening for undesirable entities.  

Furthermore, TYS has partners into your supply chain resiliency and potential disruptions that could arise from unplanned events such as a pandemic or natural calamities. Marketplace providers offers continuous monitoring capabilities to ensure that your risk data is kept up to date with evolving market conditions. These solutions are offered through free basic data sets, bring your own license, and commercial license purchasing options. 

To learn more about how Trust Your Supplier can help with your organization address these top procurement challenges and bring innovation to your supplier management process, please contact us to speak with an expert.   

Praveen Rao
Email:[email protected]
Twitter:https://twitter.com/prao1

Assessing the Risk of a New Supplier Relationship

Supplier Relationship Management isn’t necessarily a new concept, but in today’s COVID-related, digital climate, its scope and structure should be formalized and followed diligently. Instead of a transactional interaction and a contract that gets shoved in a filing cabinet until renewal, GEP states that the nature of the vendor/supplier relationships is shifting to just that: relational. Long-term.  A constant conversation that lasts throughout the contract – not just at the endpoints.  Now, of course in any relationship there is risk. 

Without diligence or with diligence only executed at the endpoints, it is much harder to figure out where the relationship went wrong if problems occurCNN reported that the HHS’ Assistant Secretary of Preparedness and Response misappropriated the millions of dollars allocated to the Biomedical AdvanceResearch for administrative and office expenses, dubbing it the Bank of BARDA. If misappropriation and mistakes can happen in an organization with that degree of oversight, they can happen anywhere.   

Gaps in normalcy like shipping delays, business shutdowns, limited manufacturing capabilities, and a higher-than-average online population gives a fraudster the perfect opportunity to slide in. So how can you identify whether your supplier is one you can count on?  

GDC agrees with the PWC categorization risks in a supplier relationship.  The risks are broken up into five segments:  

Reputational Risk 
A reputational risk means your business’ brand is affected. This can happen when the end-user experiences a product failure or substandard quality as a result of a bad supplier.  

Resilience Risk 
Resilience risks affect the customer’s access to the product because of a bad supplier. This can happen if a crucial part of your product is missing, and you must deem it out of stock. 

Data Security and Privacy Risk  
63% of data breaches happen from third party access, so strict security measures should be enforced in order to prevent stolen customer, employee, or partner data  

Regulatory Risk 
Regulatory risks happen when a business violates the country- or jurisdiction-specific compliance requirements for outsourcing or signing with a supplier.  

Commercial risk
Commercial risk can happen when supplier failure results in inaccurate or over billing, or when the costs of the supplier partnership is larger than the profit.  

Now that you know your risks, it is time to think about how to solidify your process for supplier management and risk prevention.  

Luckily, there are a few best practices and guidelines out there to lay the groundwork 

Vendor Selection 
This is where we come in. Global Data Consortium is a data-as-a-service company that delivers real-time, locally sourced business verification for financial institutions around the globe to combat reputational, regulatory, and commercial risksWhen you use GDC’s Know Your Business solution, you can choose from three types of checks with varying levels of verification and customizable match rules to meet whatever level of compliance your organization requires.  

The key to a successful supplier relationship is to never let the bad ones get to you in the first place.  Whether you’re seeking to verify the legitimacy of a potential supplier, conduct a risk analysis, or confirm the beneficial owners and directors, GDC’s KYB solution helps you kick your supplier relationship management process off with a head start.  

Contract  
Setting a contract up with your supplier means setting expectations up with your supplier. Make sure both parties are aware of the duration of the partnership, quantity of work, and quality of service expected.  

Vendor Management 
As stated above, the nature of a supplier relationship is shifting. Monitor your partnership throughout the life of it and keep an open line of communication.  

Contingency Planning 
Even with all the precautions listed above, things can still go wrong. If a supplier falls through, have a backup plan so you can still avoid a resilience risk.  

And there you have it! Although every organization has its own structure, these best practices should set the groundwork for what will be an exceptional supplier relationship management process.  

Want to start your supplier relationship management process off on the right foot? Check out our page to learn more about how GDC’s Know Your Business solution can help you minimize Regulatory, Reputational, and Commercial risks for a supplier relationship you can be confident in.