90% of firms do not screen suppliers. In fact, vendor screening requirement is often left out of the supplier selection process.
Why is that concerning?
In the past three years, the number of entities in the supply chain increased by 74%. That significant number illustrates the depth of our supplier dependencies. We are irrevocably connected to the vendors who supply essential goods and services to our firms. This creates supply chain complexity that must be considered, evaluated and mitigated.
Our vendors control business critical functions. They can single-handedly halt operations with a simple disruption in the supply chain. That one mistake can lead to millions in lost profits, time and resources – with frustration and low morale the final outputs.
Vendor screening combats that risk, head on, by providing:
1. An automated, online platform
2. Defined data on a supplier’s qualifications
3. Audits performed on high-risk suppliers
4. Facilitated supply chain management
5. Localized support for supply chain prequalification
This data is essential in cleansing supplier risk.
It identifies safety sensitive suppliers – those organizations where, if an incident were to occur, would bring down operations. These firms can then be audited for compliance to ensure that they regularly meet your requirements.
Avetta’s DocuGuard service performs the identification process of safety sensitive suppliers on your behalf. We review the documents sent in by suppliers individually, then validate that the regulatory forms and statistics are submitted properly and accurately reflect the supplier’s history.
Once this done, we can provide you with a clear view of the suppliers and services that may pose a higher risk to your firm; these suppliers are deemed safety sensitive. The AuditGuard service can then verify suppliers’ documentation, policies and procedures and/or performance in the field.
Suppliers are a reflection of the overall organization.
The more closely aligned the supply chain is, the more power a firm has to control their operations. We owe it to ourselves to enforce a vendor screening process that will carefully align our supply chain partners to our business goals.
Avetta is that solution. Contact us for more information.