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Empowering Resilience Through Risk Management: The Path to DORA Compliance in the Financial Sector

 “In the financial services arena, compliance isn’t just a mandate or a regulation – it is a commitment to trust and resilience.”  ~Sri Gopinath, TYS VP of Customer Success, Delivery & Professional Services

As the January 2025 deadline for the European Union’s Digital Operational Resilience Act (DORA) rapidly approaches, financial institutions must shift their focus to a crucial element of compliance: third-party risk management. Under DORA, financial entities must demonstrate resilience not only in their internal operations but also across their third-party relationships, which are critical to their overall operational resilience. 

DORA is set to impact a broad range of financial services providers, including banks, investment firms, insurance companies, and even non-traditional entities like crypto-asset services. But perhaps the most challenging and far-reaching provision of DORA lies in its stringent expectations for how firms manage the risks introduced by their third-party service providers. 

Why Third-Party Risk Management is Key for DORA Compliance

Third-party providers—whether cloud service providers, data centers, or even credit rating agencies—are essential to financial institutions’ day-to-day operations. As the industry continues to embrace digital transformation, the reliance on external suppliers grows. However, with this increased reliance comes increased risk and potential vulnerabilities. A disruption or breach from a third-party provider can have far-reaching consequences, impacting everything from customer trust to regulatory penalties. 

DORA recognizes this risk, establishing strict guidelines on how firms must monitor and manage their third-party relationships maintain high standards of operational resilience and reduce the risk of disruptions. The new regulation requires financial institutions to:

 

  1. Identify Critical Third Parties: Financial institutions must assess their external service providers and categorize them based on their importance to business continuity. This includes not just core services like IT infrastructure but also suppliers involved in regulatory reporting, data management, and cybersecurity. 
  1. Ensure Resilience of Third Parties: DORA mandates that financial entities must conduct thorough due diligence and establish contractual obligations with third-party providers to ensure that their suppliers meet operational resilience requirements. This includes requiring them to have robust cybersecurity measures, disaster recovery plans, and data protection protocols in place. 
  1. Continuous Monitoring and Risk Assessment: It’s no longer enough to simply vet third parties during the initial contracting and onboarding process. Under DORA, ongoing monitoring is essential to ensure compliance with contractual requirements and manage risks appropriately. Financial institutions must continuously evaluate the risk posture of their third-party providers, ensuring that they remain compliant with security, operational, and regulatory standards throughout the partnership. 
  1. Incident Reporting, Contingency Planning and Testing: DORA also demands that institutions have clear, actionable contingency plans in place in case of a third-party breach or disruption caused by third party service provider incidents. These plans must be regularly tested to ensure their effectiveness in maintaining operational continuity, and include provisions for quickly identifying and reporting incidents, as well as measures for minimizing the impact of any disruptions. 

The Challenge of Managing Third-Party Risk

Managing third-party risk is not a new challenge for financial institutions, but the scope of DORA’s requirements presents a unique opportunity—and challenge—for organizations. Ensuring compliance will require significant effort and coordination across multiple departments and functions. More importantly, it will demand comprehensive digital tools that can support continuous third-party monitoring, facilitate efficient onboarding processes, and track compliance across a range of standards. 

Here, digital platforms like Trust Your Supplier (TYS) can be a game-changer. TYS enables organizations to streamline the discovery, onboarding, and compliance management of third-party suppliers, all while ensuring that supplier risk is continuously assessed through automated workflows.  

By leveraging TYS’s third-party risk management capabilities, financial institutions can gain visibility into the operational resilience of their critical suppliers, monitor ongoing compliance with DORA’s stringent requirements, and quickly identify any potential gaps in their third-party risk management strategies. 

Preparing for DORA Compliance: Key Steps Financial Institutions Can Take

To successfully prepare for DORA’s third-party risk management requirements, financial institutions should: 

  1. Conduct a Third-Party Risk Assessment: Review all third-party relationships and identify which suppliers are critical to business continuity. This should include both direct suppliers and those providing outsourced services for your critical functions. 
  1. Strengthen Contracts and Agreements: Ensure that all contracts with third-party providers include provisions for operational resilience, including disaster recovery, cybersecurity, and compliance monitoring. 
  1. Implement Continuous Monitoring and Reporting: Implement digital tools that enable real-time monitoring of third-party risk. This should include tracking supplier financial health, cybersecurity posture, and any relevant regulatory compliance requirements. 
  1. Establish Incident Response and Contingency Plans: Develop and implement contingency plans that include clear protocols for handling disruptions caused by third-party service providers. 

How Trust Your Supplier (TYS) Helps with Third-Party Risk Management

Trust Your Supplier (TYS) offers a comprehensive solution for managing third-party risk under DORA. The platform enables financial institutions to streamline the discovery and vetting of suppliers, while also maintaining a continuous watch on supplier compliance and risk.  

With TYS, you can: 

  • Pre-qualify and Assess Third-Party Suppliers: Discover new, trusted suppliers with integrated risk data and pre-qualification tools. TYS makes it easier to evaluate and select suppliers that meet your organization’s specific resilience and compliance needs.
  • Continuous Monitoring: Stay informed about your suppliers’ financial viability, cybersecurity posture, and overall risk through automated updates and reports. TYS helps you ensure that your critical third-party providers continue to meet DORA’s evolving requirements. You can conduct regular audits and questionnaires as part of an ongoing monitoring campaign to ensure they remain compliant with DORA.

  • Streamline Compliance Management: TYS’s digital workflows automate the monitoring of regulatory compliance, reducing manual effort, mitigate human error and maintain an audit trail of documentation and approvals to achieve compliance.   

The Path Forward: Building a Resilient Third-Party Ecosystem

As DORA compliance looms large on the horizon, financial institutions have a critical opportunity to enhance their third-party risk management strategies. By addressing the risks posed by external suppliers, financial entities can build a more resilient, digitally enabled operational model that stands up to the challenges ahead. 

Taking action now—not just to comply with DORA, but to build a sustainable third-party risk management framework—will ensure that financial institutions can not only survive but thrive in an increasingly complex and regulated environment. 

Get Ready for DORA with Trust Your Supplier

Third-party risk management will play a pivotal role in your DORA compliance strategy. Learn how TYS can help streamline your supplier risk assessments, automate compliance workflows, and provide real-time visibility into your third-party relationships. Contact us today to schedule a demo and see how our platform can help you stay ahead of regulatory requirements and strengthen your operational resilience. 

April Harrison Blog, Financial, Risk & Compliance, Supply Chain 0 Comments , , ,

Rethink and De-risk the Automotive Supply Chain

The automotive industry is navigating an era of unparalleled disruption. Manufacturers face immense pressure to boost efficiency, reduce costs, and shield their supply chains from risk. To thrive, automotive leaders must reorient their approach and adopt innovative strategies that drive savings, improve profitability margins, and ensure uninterrupted operations. By rethinking traditional practices and leveraging new technologies, manufacturers can future-proof their operations and maintain a competitive edge.

Key Areas of Focus:

  1. Global Sourcing Complexities
  2. Supplier Risk Management (Financial & Cyber)
  3. Regulatory Compliance
  4. Collaboration & Standardization 

Global Sourcing Complexities

Automotive supply chains are among the most complex and interconnected globally, involving thousands of components sourced from numerous suppliers across different regions. Any delay or shortage can have a ripple effect, halting production lines and negatively impacting revenue and profit margins. Furthermore, safety recalls—particularly those driven by NHTSA compliance standards—add another layer of complexity, making visibility into multi-tier supplier relationships essential for effective risk management. 

To tackle these challenges, manufacturers are increasingly diversifying their supplier base and adjusting from just-in-time inventory models to more resilient, multi-source strategies. However, this also introduces increased workload as companies now need to discover, qualify, and maintain relationships with suppliers across multiple regions. Without the right tools, bottlenecks in this process can slow down the entire value chain. 

Additionally, The Hackett Group’s 2024 Procurement Agenda and Key Issues Study findings show that 43% of current supplier onboarding/portal technology solutions fell short of expectations as rated by procurement executives in this annual survey. 

Trust Your Supplier (TYS) equips manufacturers to manage these global sourcing complexities by streamlining supplier discovery and onboarding. Manufacturers can quickly identify trusted suppliers, reducing the onboarding cycle by up to 90%. This acceleration drives operational savings, improving both time-to-market and profitability. The platform also ensures visibility into parent-child business relationships, helping manufacturers stay compliant with critical safety standards, such as those mandated by the NHTSA, to mitigate risk across the entire supply chain. 

Supplier Risk Management (Financial & Cyber)

Given its extensive supplier networks, the automotive industry is vulnerable to numerous risks. Whether it’s the financial instability of a supplier, geopolitical tensions, or the growing threat of cyberattacks, manufacturers must be prepared to manage these challenges without slowing production. 

  • Financial Viability: Suppliers’ financial health is essential to continuous operations. Any financial instability can lead to delays, product shortages, or even production stoppages, significantly increasing costs. 
  • Geopolitical Risks: Tariffs, trade wars, or sudden regulatory changes can disrupt the supply of essential components, affecting both costs and availability. 
  • Cybersecurity Threats: With the industry’s increasing reliance on digital connectivity, cyberattacks on suppliers can lead to data breaches, operational disruptions, and intellectual property theft. 

 

The Hackett Group’s 2024 Procurement Agenda and Key Issues Study also found that strengthening third party risk management, visibility and capability remain one of the top ten priorities of procurement leaders. 

TYS leverages integrated data from partners such as D&B and Maplecroft, and advanced analytics to provide a holistic view of supplier risks. By monitoring financial stability, geopolitical changes, and cybersecurity threats, manufacturers can proactively address potential disruptions. This agility helps them not only manage risk but also protect their profit margins from the costly effects of production delays or security breaches. 

Regulatory Compliance

Operating in a highly regulated environment, automotive manufacturers need to adhere to strict standards governing safety, emissions, and labor practices across different regions. Failure to comply with these regulations can result in severe penalties, including costly fines, product recalls, and damage to brand reputation. Given the global nature of the automotive supply chain, ensuring that suppliers across all tiers adhere to these diverse and stringent regulations is critical. Regular audits and assessments are essential to verify that suppliers meet industry standards, which helps avoid potential legal issues and maintains the integrity of the manufacturing process. 

With regulatory bodies like the Environmental Protection Agency (EPA) in the U.S. and the European Union’s strict emissions regulations, manufacturers must ensure compliance not only for themselves but also for their entire supply chain. This includes meeting the requirements for environmental impact, vehicle safety, and ethical labor practices. 

TYS provides tools to help manufacturers efficiently manage regulatory requirements and maintain transparency across their supply chains. Here’s how TYS supports compliance: 

Identify and Address Requirements: TYS fosters open communication channels within industry verticals to identify and address compliance requirements and issues. This proactive approach helps automotive manufacturers stay ahead of regulatory changes and ensures that compliance strategies are aligned with industry standards. 

Smart Questionnaires: Utilize TYS’s predictive and dependent questionnaires for periodic supplier evaluations. This ensures ongoing compliance with stringent industry standards. Our standardized repository of regulatory questionnaires allows suppliers to share critical compliance information across their buyer community, enhancing transparency and simplifying compliance management. 

Automated Approvals and Dependency Workflows: Automate approval processes and manage dependency workflows with TYS. This reduces manual effort, minimizes delays, and ensures that compliance requirements are met efficiently and accurately, freeing resources for other essential tasks. 

Regular Compliance Monitoring: TYS offers continuous compliance monitoring with periodic evaluations to ensure that suppliers consistently adhere to regulatory standards. This ongoing oversight helps mitigate potential disruptions and legal risks, addressing compliance issues before they escalate. 

Collaboration & Standardization

Effective supply chain management requires strong collaboration, both internally across departments and externally with suppliers. However, achieving this level of coordination is challenging, especially when different teams work in silos or suppliers have varied processes. Misalignment can lead to inefficiencies, delays, and increased costs, compromising a manufacturer’s ability to respond to market shifts or regulatory changes swiftly. 

For the automotive sector, a standardized approach is critical—not only to ensure consistent quality but also to comply with regulatory standards like those of the NHTSA. Inconsistent documentation, communication gaps, and misaligned supplier management processes can lead to non-compliance and costly recalls. 

TYS enhances collaboration and standardization by providing procurement, supply chain, risk, and compliance teams with access to the same trusted data, ensuring seamless communication and informed decision-making across departments. Externally, TYS supports supplier collaboration through a standardized framework that ensures consistent documentation, communication protocols, and compliance metrics. With real-time analytics and reporting, manufacturers can monitor supplier firmographics and risks, allowing for proactive management and stronger, more efficient partnerships across the global supply chain. 

Driving Toward a Resilient Future

As the automotive industry faces mounting pressures, the need to rethink and de-risk the supply chain has never been more urgent. TYS empowers manufacturers to streamline supplier management, enhance regulatory compliance, and mitigate risks, all while driving accelerated savings and improving profitability margins. By adopting a more agile and proactive approach to supply chain operations, manufacturers can strengthen their resilience, reduce costs, and stay ahead of disruption. With TYS, the future of the automotive supply chain is not just secure—it’s optimized for long-term success. 

 



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April Harrison Automotive, Blog, Cyberrisk, Financial, Supply Chain 0 Comments , , , ,

Mastering the Complexities of Energy and Utility Supply Chains with Trust Your Supplier

by Nick Picone, TYS VP of Advisory Practice

Energy and Utility (E&U) organizations operate within one of today’s most complex and operationally challenging supply chain environments. They are interdependent industries where reliability and resilience are non-negotiable. As these industries evolve, they face three key operational challenges, ranging from ensuring a consistent supply of the goods and services (at stable prices) required to maintain an aging utility grid, balancing energy transition with compliance requirements, and mitigating a wide range of supplier risks – especially cyber vulnerabilities.  

According to Hemingway’s Law of Motion, these challenges can lead to an unforeseen collapse which “happens gradually and then suddenly” where seemingly manageable issues can escalate into critical failures if not addressed proactively. What’s needed is a novel approach to supplier and risk management, one that anticipates and mitigates risks before they impact operations. 

In order to deliver meaningful change, leaders across the sector need to be intellectually honest about their current state and capabilities and curious about what practical steps they can take to improve how they operate. In this case, the improvement that I’m referring to is a future state that provides the visibility, and end-to-end capabilities required to mitigate key challenges before they reach a tipping point. 

Aging Infrastructure: A Pressing Concern

One of the most consequential challenges facing the energy and utility sectors is aging utility infrastructure. According to a U.S. Grid Deployment Office (GDO) report, over 70% of the U.S. utility grid is more than 25 years old and will require substantial modernization or complete replacement. This ongoing issue not only impacts reliability but also significantly increases maintenance costs. The American Society of Civil Engineers (ASCE) Infrastructure Report Card underscores that aging infrastructure requires more frequent repairs and faces an increase in prolonged outages that can erode customer trust and impact daily life. 

Moreover, the Department of Energy (DOE) highlights that outdated infrastructure cannot support the advanced technology needed for grid modernization and integration of renewable energy sources. This presents a considerable obstacle as utility companies strive to meet regulatory requirements and sustainability goals. As infrastructure projects ramp up, the demand for raw materials and components increases, leading to potential supply bottlenecks, which can further delay critical upgrades and increase costs.  

How TYS Helps: 

Maintaining aging infrastructure requires a diversified supplier base to provide specialized components and services, which can be challenging to source, especially in a landscape prone to supply bottlenecks. TYS simplifies the diversification process by providing U&E companies with the tools to segment and identify potential risks and the ability to quickly discover, assess, and onboard suppliers. 

TYS provides comprehensive visibility into your entire supplier base, as well as the agility and controls required to mitigate risks proactively, ensure compliance, and enhance operational efficiency. By leveraging clean and continuously maintained data in addition to a network of trusted suppliers, companies can pre-qualify and onboard new suppliers with speed and precision. Furthermore, TYS’s automated monitoring capabilities ensure continuous oversight of supplier risk and compliance with regulatory standards, allowing organizations to address potential issues before they reach a tipping point.  

This holistic approach streamlines procurement processes, fortifies supply chain resilience, and empowers utilities to maintain and modernize their aging infrastructure without unexpected delays or disruptions due to supplier challenges. 

Energy Transition & Compliance Management: Balancing Innovation and Regulation 

The global push towards clean energy has added a new layer of complexity to the energy and utility industries. Transitioning to renewable energy sources like solar, wind, and hydroelectric power necessitates significant infrastructure upgrades, while the rapidly evolving regulatory landscape requires meticulous compliance management. 

As regulations become more stringent, utility companies face increasing pressure to meet Environmental, Social, and Governance (ESG) standards. This challenge extends to the careful selection of suppliers who align with these criteria. KPMG emphasizes that non-compliance with safety and environmental regulations can lead to severe penalties, operational setbacks, and reputational damage. 

How TYS Helps 

TYS simplifies compliance management by enabling utility companies to quickly find and onboard suppliers that meet sustainability and regulatory requirements. The platform offers an intuitive supplier discovery experience through features like dynamic search and filtering, making it simple to identify suppliers within a trusted network that adhere to compliance criteria. 

The procurement process is also streamlined by enabling efficient review and consensus approvals on internal supplier requests before initiating contact. TYS’s flexible platform supports customization of the prequalification process with tailored assessment questionnaires, automated approvals, and segmented validations to ensure alignment with specific business requirements. 

Compliance initiatives are seamlessly managed through a combination of up-to-date supplier compliance questionnaires and risk data from trusted partners. This approach provides both qualitative and quantitative insights, supporting informed decision-making. 

Once suppliers are onboarded, TYS’s life cycle monitoring tools offer ongoing visibility into compliance, reducing the risk of penalties and helping to maintain a strong reputation. 

Risk Management: Safeguarding Against Disruptions 

The E&U sectors are facing an increasing frequency of disruption driven by global events such as pandemics, geopolitical conflicts, natural disasters, and trade restrictions. Additionally, the exponential rate of integration of digital technologies is driving a significant volume of new cybersecurity attacks. In fact, Power Grid International reports a 71% rise in cyberattacks on utility companies in North America in just the last year. 

Effective risk management is often hampered by fragmented data management processes, which can lead to limited visibility across the supplier network. This lack of transparency is a direct result of outdated information creating sub-optimal conditions for decision-making, leaving companies ill-prepared to respond to emerging threats. 

As digital technologies are being continually implemented across utility operations, the stakes of cybersecurity continue to grow. Cyberattacks can compromise sensitive data, disrupt essential services, and inflict severe financial and reputational damage. 

How TYS Helps: 

TYS offers a secure and comprehensive risk management solution that enhances visibility across the supply chain. This enables companies to identify potential risks related to cyber security and respond proactively. By integrating data from leading risk intelligence providers, E&U organizations can continuously access reliable, “best-of-breed data” that supports informed decision-making.

Additionally, TYS provides supplier profiles that can be enriched with critical information from top cyber risk intelligence sources, allowing companies to assess and monitor cyber threats associated with their suppliers. This comprehensive understanding of potential risks is further strengthened by TYS’s use of blockchain technology, which minimizes the risk of data breaches and provides a secure environment for supplier interactions, protecting against operational and reputational damage. 

The TYS platform includes comprehensive risk monitoring workflows that continuously track changes in supplier risk profiles. These workflows trigger an automated approval process that will re-evaluate key data points and provide a best-in-class risk management process. 

Through these capabilities, TYS empowers utility companies to build resilient and reliable supply chains that can withstand global challenges and safeguard their operations against emerging risks. 

TYS: Empowering Energy and Utility Companies for Long-Term Success

In an industry defined by aging infrastructure, the transition to renewable energy, and the growing risks of global supply chain disruptions, energy and utility companies face challenges that demand innovative solutions. 

Trust Your Supplier (TYS) provides a comprehensive suite of tools that allow organizations to rethink their risk management posture and redesign their supplier management process, enhancing visibility, digitizing processes, and strengthening risk and compliance management. 

From supplier discovery and onboarding to multi-dimensional risk management, TYS equips companies with the capabilities needed to build resilient, reliable, and compliant supply chains and position themselves for sustainable success in an ever-evolving industry. 

Want to dive deeper into these insights? Watch our vlog where Nick Piccone explores these complexities how Trust Your Supplier can help you overcome them.  Check it out here.

 

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April Harrison Blog, Energy & Utilities, Supply Chain 0 Comments , , , ,

Enhancing Transparency and Reliability in the Food Manufacturing Supply Chain

Ensuring the highest standards of transparency and reliability in the food manufacturing supply chain is paramount. Consumers today are more conscious than ever about where their food comes from and how it’s produced. Every step in the supply chain needs to be meticulously monitored from farm to table to ensure safety, quality, and compliance. Trust Your Supplier (TYS) offers a cutting-edge blockchain-based solution that transforms supplier and risk management for food manufacturers, ensuring unparalleled transparency and reliability.

The Challenge: Complexity and Risk in the Food Supply Chain
Food manufacturing companies face a unique set of challenges in their supply chains. With numerous suppliers, from farmers to packaging companies, the complexity is immense. This complexity often leads to issues such as: 

  • Lack of Visibility: Difficulty in tracking supplier information and credentials 
  • Compliance Risks: Ensuring all suppliers adhere to food safety regulations and standards 
  • Inefficiencies: Manual processes can lead to errors and delays
  • Risk Management: Predicting and mitigating risks related to supplier reliability


The TYS Solution: Blockchain-Based Supplier Information Management
Trust Your Supplier addresses these challenges head-on with our innovative blockchain-based platform, providing a single source of truth for supplier information and updates. Here’s how TYS enhances transparency and reliability in the food manufacturing supply chain: 

  1. Immutable Records and Transparency: Blockchain technology ensures that every update or change to supplier information is immutable, meaning it cannot be altered or deleted. This immutability guarantees that all information about suppliers is accurate and tamper-proof, providing complete transparency to food manufacturers.
  2. Comprehensive Supplier Profiles: TYS supplier profiles are owned by each supplier, and firmographics are aggregated with risk intelligence data. These profiles are continuously updated with real-time data, ensuring food manufacturers have the most current information to make informed decisions. This comprehensive visibility helps identify and mitigate risks before they become issues.
  3. Enhanced Compliance and Approval Workflows: With TYS, food manufacturers can automate compliance checks and approval processes. TYS approval workflows streamline validating supplier information and compliance documents.
  4. Real-Time Monitoring and Updates: TYS offers real-time monitoring of supplier information, including risk data and updates to firmographics or documents such as certifications and tax documents. This ensures that food manufacturers are always aware of the current status of their suppliers and can react swiftly to any changes.
  5. Predictive and Prescriptive Insights: Leveraging advanced analytics, TYS reports provide insights into potential risks within the supply chain. By analyzing historical data and trends, users can mitigate these risks to maintain a steady and reliable supply chain.
  6. Efficient and Trustworthy Data Exchange:  By using a distributed ledger, all parties have access to the same information in real-time, reducing misunderstandings and errors. This transparency fosters trust and collaboration among suppliers and internal stakeholders. 


Use Case: Streamlining Supplier Management
Consider the scenario where a food manufacturing company sources ingredients from multiple suppliers. With TYS, each supplier’s information, including compliance questionnaires, certifications, and risk assessments, is recorded on the blockchain. As suppliers update their documents or firmographics, TYS provides real-time alerts to the food manufacturer, ensuring they always have the most up-to-date information to make informed decisions. 

Maintaining transparency and reliability in the food manufacturing supply chain is not just a regulatory requirement but a critical differentiator. Trust Your Supplier provides a reliable blockchain-based solution that helps food manufacturers manage compliance checks, real-time monitoring, and supplier information effectively. By offering comprehensive supplier profiles and streamlined approval workflows, TYS supports food manufacturers in confidently managing their supplier relationships.  

Reach out to discuss how you can enhance the integrity and efficiency of your supply chain with TYS.

 


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April Harrison Blockchain, Blog, Consumer Products, Risk & Compliance, Risk Management, Supplier Information Management, Supply Chain 0 Comments , , , ,

Mitigating Cyberattack Fallout

How Trust Your Supplier Could Safeguard Pharmacy Operations

by Michelle Armstrong, TYS Global VP of Value Solutions Consultant

In the wake of the recent cyberattack disrupting US pharmacies’ prescription filling processes, it’s evident that the healthcare sector remains vulnerable to digital threats. The incident, as reported by major news agencies, underscores the critical need for robust cybersecurity measures to protect sensitive patient data and ensure uninterrupted healthcare services.

The cyberattack, which targeted a major supplier, has caused significant delays in prescription filling across numerous pharmacies nationwide. Such disruptions not only inconvenience patients but also pose serious risks to their health, particularly for those dependent on timely medication refills.

Amidst this tumultuous landscape, Trust Your Supplier (TYS) emerges as a beacon of hope for pharmacies striving to fortify their supply chain resilience and security protocols. TYS, a blockchain-based platform designed to enhance supplier qualification processes, offers several key advantages in mitigating the aftermath of cyberattacks:

1. Verified Supplier Networks: Trust Your Supplier leverages blockchain technology to establish a trusted network of suppliers vetted through stringent qualification processes. By onboarding verified suppliers, pharmacies can minimize the risk of engaging with potentially compromised entities, thereby safeguarding their supply chain integrity.

2. Enhanced Transparency and Traceability: With Trust Your Supplier, pharmacies gain unprecedented visibility into their supplier ecosystem. The platform facilitates transparent communication channels and real-time tracking of transactions, allowing pharmacies to identify and address vulnerabilities promptly. By fostering transparency and traceability, TYS empowers pharmacies to proactively mitigate cyber threats and respond effectively to disruptions.

3. Immutable Data Integrity: The immutable nature of blockchain ensures the integrity and immutability of critical data stored on the Trust Your Supplier platform. By leveraging blockchain’s tamper-resistant architecture, pharmacies can trust the accuracy and reliability of supplier information, mitigating the risk of data breaches and unauthorized access.

4. Streamlined Compliance Management: Trust Your Supplier simplifies compliance management by standardizing supplier qualification processes and documentation. Pharmacies can effortlessly verify suppliers’ compliance with regulatory requirements and industry standards, thereby reducing the likelihood of regulatory violations and associated penalties.

5. Resilient Supply Chain Operations: In the face of cyberattacks and other disruptions, Trust Your Supplier enables pharmacies to maintain continuity in their supply chain operations. By leveraging blockchain’s decentralized architecture, TYS mitigates the single point of failure inherent in traditional supply chain systems, ensuring uninterrupted access to critical medications and healthcare supplies.

In conclusion, the recent cyberattack targeting US pharmacies underscores the urgent need for proactive cybersecurity measures and resilient supply chain solutions. Trust Your Supplier offers pharmacies a comprehensive framework for enhancing supply chain security, fostering trust among stakeholders, and safeguarding patient well-being in an increasingly digital healthcare landscape. By embracing innovative technologies like blockchain, pharmacies can navigate the challenges of cyber threats with confidence and resilience, ensuring the uninterrupted delivery of essential healthcare services to those who depend on them most.

Discover how Trust Your Supplier can revolutionize your supply chain security. Contact us today to learn more or to schedule a demo. 

April Harrison Blog, Pharmaceutical, Risk Management, Supply Chain, Value Engineering 0 Comments , , ,

Revolutionizing FMCG Procurement and Compliance

A New Era of Efficiency, Transparency, and Sustainability

by Michelle Armstrong, TYS Global VP of Value Solutions Consultant

Unlock Efficiency, Transparency, and Trust
In the fast-paced world of Fast-Moving Consumer Goods (FMCG), procurement and compliance teams face unique challenges. From ensuring a steady flow of quality supplies to adhering to stringent regulatory standards, the demands are relentless. That’s where Trust Your Supplier (TYS) comes into play, offering an innovative solution that transforms the way FMCG companies manage their supplier relationships. 

Why Trust Your Supplier? 

  1. Enhanced Transparency and Trust
    Trust Your Supplier provides a comprehensive digital passport for suppliers, offering real-time insights into their operations, compliance status, and more. This transparency fosters trust between FMCG companies and their suppliers, ensuring that procurement decisions are based on accurate and up-to-date information. 
  1. Streamlined Supplier Onboarding and Management
    Gone are the days of cumbersome onboarding processes. TYS simplifies and accelerates supplier integration, allowing FMCG companies to quickly benefit from their services. With TYS, managing supplier information becomes effortless, enabling procurement teams to focus on strategic decision-making rather than administrative tasks. 
  1. Risk Management and Compliance Assurance
    In the FMCG sector, ensuring compliance with regulatory standards is paramount. Trust Your Supplier not only facilitates easy access to supplier compliance documentation but also provides tools for monitoring and managing risk. This proactive approach to compliance helps FMCG companies avoid costly penalties and reputational damage. 
  1. Improved Operational Efficiency
    By automating key procurement processes, TYS significantly reduces manual workload, leading to improved efficiency and cost savings. Procurement and compliance teams can allocate their resources more effectively, optimizing their supply chain operations. 
  1. Building Sustainable Supply Chains
    Sustainability is a pressing concern in the FMCG industry. Trust Your Supplier supports the development of sustainable supply chains by enabling companies to identify and collaborate with suppliers that adhere to environmental and social standards. This alignment with corporate sustainability goals not only benefits the planet but also enhances brand reputation. 

The Future of FMCG Procurement and Compliance
In an industry where speed, quality, and compliance cannot be compromised, Trust Your Supplier stands out as a beacon of innovation. By leveraging blockchain technology and a network of trusted information, TYS is redefining what’s possible in FMCG procurement and compliance. 

Join the Revolution
For FMCG procurement and compliance teams looking to enhance their operations, reduce risk, and build stronger, more sustainable supplier relationships, the choice is clear. Trust Your Supplier is not just a platform; it’s a strategic partner in your supply chain transformation journey. 

Discover how Trust Your Supplier can revolutionize your procurement and compliance strategies. Contact us today to learn more or to schedule a demo. 

April Harrison Blog, ESG, Risk Management, Supply Chain, Value Engineering 0 Comments , , , ,

Navigating the Global Chessboard

Essential Insights for Senior Leaders Ensuring Organizational Success Amidst Geopolitical Turmoil, Regulatory Shifts, and Ethical Challenges

In our rapidly changing, interconnected world, the unique blend of empathy and strategic insight has become indispensable for senior leaders. Confronted with challenges ranging from geopolitical upheaval to rapid technological changes and pressing ethical dilemmas, leaders must look beyond traditional management tactics. This blog highlights the crucial role of empathy, not only as a soft skill but as a strategic imperative, in guiding decisions and actions that navigate these complex issues effectively. It’s a call for leaders to become empathetic visionaries, adept at steering organizations through the intricate realities of our global landscape.

Key points that senior leaders need to understand for continued success in their organizations without impacting their supply chain, relationships, and corporate responsibility:

Navigating a Conflict-Ridden Global Landscape: With political violence at its highest since WWII, understanding geopolitical dynamics is crucial. Organizations must be vigilant about how conflicts, especially in regions like Gaza, Ukraine, and others, can disrupt supply chains and create regulatory challenges. Leaders must develop strategies to mitigate these risks, including diversifying suppliers and investing in robust risk management systems.

Adapting to Regulatory Changes in AI and Technology: The explosion of AI and the impending regulations, particularly in the European Union, necessitate a thorough understanding of how these changes affect business operations. Companies should prepare for compliance with AI regulations and explore how advancements in technology can optimize supply chain efficiency and data management.

Addressing Economic Instability and Debt Sustainability: The economic fallout from recent crises, including high inflation and interest rate hikes, will impact global markets. Leaders need to be proactive in managing financial risks, understanding the implications for their supply chain financing, and adjusting their strategies accordingly.

Understanding the Dynamics of the Global South: The evolving geopolitical influence of countries in the Global South, like those in the BRICS bloc, will have significant implications for global trade and politics. Companies need to be aware of these shifts and consider their impact on international business relations and supply chain decisions.

Balancing Security and Rights in Business Operations: The tension between security needs and fundamental rights is becoming more pronounced. Businesses must navigate this landscape carefully, ensuring that their operations and supply chain practices respect human rights while maintaining security and compliance with local regulations.

Engaging with a Disconnected Society: With a trend toward news avoidance and increased reliance on social media, businesses need to rethink their communication and engagement strategies. This includes understanding the shift in how people consume information and the growing role of influencers.

Responding to Backsliding International Commitments: The weakening of international cooperation and commitment to Sustainable Development Goals (SDGs) requires businesses to take a more active role in promoting sustainability and ethical practices, both in their operations and in their supply chain.

Mitigating Risks from Environmental and Humanitarian Crises: Increased displacement and humanitarian crises, driven by conflict and climate change, can impact supply chains and corporate responsibility. Businesses should develop strategies to address these challenges, including sustainable practices and humanitarian aid initiatives.

In conclusion, senior leaders must prioritize a comprehensive understanding of these complex global issues. They should integrate this understanding into strategic planning and operations to ensure resilience, compliance, and responsible practices in their supply chains and broader business activities. This approach will not only safeguard their operations but also contribute positively to global stability and progress.

April Harrison Blog, Supply Chain, Value Engineering 0 Comments ,

Revolutionizing Pharma Supply Chains: Navigating Risks and Embracing Digitalization for a Resilient Future

by Michelle Armstrong, TYS Global VP of Value Solutions Consultant

Abstract 

The pharmaceutical supply chain is grappling with significant issues of medicine shortages. This study adopts a risk management approach to identify key risk factors affecting the pharmaceutical supply chain, using the Malaysian pharmaceutical industry as a case study.

The research utilizes Fuzzy Failure Mode and Effect Analysis and Data Envelopment Analysis for risk assessment. The study finds the pharmacy node as the riskiest, with unexpected demand and scarcity of specialty drugs as major risk factors. To mitigate these risks, the study advocates the use of digital technologies like big data analytics and blockchain. 

Introduction
Medicine shortages in the pharmaceutical industry pose serious challenges, impacting health outcomes and the broader healthcare system. These shortages lead to increased healthcare costs due to the use of alternative medications and managing patient health complications. The study aims to understand the root causes of these shortages and how digital technology can address them, ushering in the Pharma 4.0 era. 

Pharmaceutical Supply Chain and Risk Factors
The pharmaceutical supply chain (PSC) is intricate, involving multiple stakeholders and extending across countries. It’s segmented into three levels: sourcing, distribution, and consumption. The supply chain’s complexity and unpredictability often lead to inefficiencies and disruptions. 

 Key risk factors include: 

  • Disconnections and lack of accountability among supply chain partners. 
  • Long lead times and the “bullwhip effect,” where demand changes cause supply fluctuations. 
  • High operating costs due to maintaining optimum inventory levels. 
  • Transportation-related risks like delays and damage to goods. 
  • Impact of natural disasters, political instability, and pandemics on the supply chain. 
  • Regulatory challenges include documentation, changes in standards, and drug recalls.

Methodology
The study adopts a risk management approach using Failure Mode and Effects Analysis (FMEA) and Data Envelopment Analysis (DEA). FMEA helps identify potential failure modes in the supply chain, while DEA is used to calculate risk-based efficiency. The methodology involves fuzzification of risk factors, risk assessment metric development, and the use of Fuzzy Inference System (FIS) and DEA for evaluating failure modes. 

Results and Analysis
The study’s application to the Malaysian pharmaceutical supply chain reveals: 

  • High-risk factors at the manufacturing node include delays in raw material supply due to overseas suppliers. 
  • The distributor node faces moderate risks due to transportation and inventory management challenges. 
  • The pharmacy node shows the highest risk, particularly due to unexpected demand surges and lack of substitute drugs. 
  • The DEA cross-efficiency method highlights the varying risk levels across different nodes of the supply chain, emphasizing the need for targeted risk mitigation strategies.  

Managerial Implications
The study suggests a framework for incorporating digitalization into the pharmaceutical supply chain to mitigate risks. Key recommendations include: 

  • Collaborative technologies for information sharing to manage inventory and reduce the bullwhip effect. 
  • Blockchain technology for drug sharing networks, improving data transparency and trust. 
  • Utilization of data analytics and AI in manufacturing to address supply delays and enable more effective forecasting. 

Conclusion
The study concludes that medicine shortages are a pressing issue in the pharmaceutical supply chain, exacerbated by complex risk factors. Digital technologies, especially big data analytics and blockchain, are crucial for addressing these challenges. The proposed framework for digitalization aims to enhance the efficiency and resilience of pharmaceutical supply chains.  

April Harrison Blog, Pharmaceutical, Supplier Information Management, Supply Chain, Value Engineering 1 Comment , ,

Resolute Resolutions: Steering the Supply Chain with Year-Long Focus

by Michelle Armstrong, TYS Global VP of Value Solutions Consultant

As we embark on a new year, the omnipresence of New Year’s resolutions is undeniable, whether it be on social media, in conversations, or in the news. For many of us, the commitment to these resolutions begins fervently in January but tends to wane as quickly as the holiday decorations are put away. In the supply chain realm, these resolutions take on a strategic and operational significance.

Plan and Play Smart
A key resolution in supply chain management is the adoption of real-time visibility for both supply and demand, enabling effective scenario planning and inventory optimization strategies. This visibility is critical for adapting to changes and making timely, resolute decisions. Integrated Business Solutions are essential in this regard, enhancing the synchronization of supply chain risk and real-time planning. The economic fluctuations affecting sales, operations planning (S&OP), forecasting, demand response, supply, and inventory planning emphasize the need for an agile approach with high visibility. 

Taking Out the Garbage: Data Hygiene
Another crucial resolution involves tackling ‘garbage data’ – data that is inaccurate, unusable, or untrustworthy. Cleaning up and ensuring data reliability is fundamental. The steps to improve data hygiene include: 

  • Audit: Assessing the current data situation and identifying issues in data collection processes. 
  • Standardize: Creating consistent reporting processes aligned with organizational goals. 
  • Deduplicate: Utilizing automation to reduce duplication and human error. 
  • Verify: Testing the reliability and accuracy of the data post-clean-up. 

Strengthen Your Business Networks
The cost of disruption in the supply chain extends beyond finances to brand perception and customer satisfaction. Achieving 360-degree, real-time visibility across the entire end-to-end supply chain is vital. Integrated platforms that allow instant information sharing with suppliers, partners, and third-party providers are essential for transparency, fast decision-making, and enhanced customer satisfaction. 

Closer Scrutiny of Materials Suppliers
Materials suppliers, often less scrutinized than contractors, now face increasing scrutiny due to economic and regulatory pressures. Ensuring compliance with health, safety, quality assurance, environmental protection, and ethical practices is paramount. Supporting suppliers in demonstrating their compliance with supply chain risk management practices is crucial in navigating the complex maze of global and regional regulations. 

Embracing Technology and Innovation
Incorporating technology and innovation is pivotal. Digital transformation can significantly streamline operations. Integrating advanced analytics, AI, and IoT technologies can revolutionize supply chain management. 

Fostering a Culture of Continuous Improvement
Encouraging a culture of continuous improvement is essential. This involves open communication, regular training, and celebrating milestones to align the team with organizational goals. 

Adapting to Change and Overcoming Challenges
The supply chain industry faces numerous challenges, including market fluctuations and global disruptions. Balancing steadfast commitment to resolutions with the flexibility to adapt is key to resilience. 

Conclusion
As we progress through the year, let’s focus on these resolutions with strategic planning, data management, strengthened business networks, and rigorous supplier scrutiny. Let’s make this year count by staying focused, resilient, and committed to our goals in the ever-evolving landscape of supply chain management. 

April Harrison Blog, Supplier Information Management, Supply Chain, Value Engineering 0 Comments , ,

Hyperledger in Action – TYS

🎉 Exciting news! As the only blockchain supplier information management solution, Trust Your Supplier (TYS) has been featured in Hyperledger‘s Supply Chain & Trade Finance ebook! 🌐 This recognition validates our commitment to revolutionizing the industry and providing innovative solutions.

📖 Take a peek at the ebook to discover how our cutting-edge technology is transforming supply chain and trade finance processes.

🔗https://www.hyperledger.org/hyperledger-supply-chain-finance-ebook-2023

#BlockchainTechnology #SupplyChainInnovation #Hyperledger #SupplierManagement #Sourcing #Procurement #DigitalWallet

 

April Harrison Blockchain, Blog, Supply Chain 0 Comments