Sourcing a Supplier Ecosystem Built to Last: Approaches to Proactive Supplier Risk
Just like running an employee background check, mitigating supplier risk requires proactive and intentional vetting. The same concept applies for even more complex, multi-tiered supply chains. Beyond sourcing operations, bad vendor data also affects supply chain users in procurement, accounts payable and legal departments. Sourcing departments should monitor real-time news for human trafficking and disbarment cases that may be associated with their supply chain. Since analytic output is only as good as data input, access to the correct data is vital for a successful supplier risk strategy.
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Just like running an employee background check, mitigating supplier risk requires proactive and intentional vetting. The same concept applies for even more complex, multi-tiered supply chains. Beyond sourcing operations, bad vendor data also affects supply chain users in procurement, accounts payable and legal departments. Sourcing departments should monitor real-time news for human trafficking and disbarment cases that may be associated with their supply chain. Since analytic output is only as good as data input, access to the correct data is vital for a successful supplier risk strategy.