If your client asks for your list of suppliers today, what would you do?
Some might think it odd to be asked for your company’s list of suppliers. However, this is becoming a frequently asked question during the procurement process. Companies are expected to share who they are doing business with and confirm they too are managing their suppliers and working with responsible companies. It is a fact that the corporate responsibility buck stops with your company and not the supplier further down the supply chain.
The number of requests for supply chain due diligence is rising rapidly, this is due to the ongoing disruption to businesses on a global scale. Companies are desperately seeking stability in a quagmire of uncertainty. That is why businesses want to work with resilient companies who actively manage their third-party relationships.
Every day, we hear more about the horrors of the climate crisis, rising inflation, cyber threats and the energy crisis. There is no escape. We are all experiencing the financial and environmental impact on a personal and business level, albeit at varying degrees.
Let us not forget the disruption to the flow of goods and services along the fragile local and supply chains. The knock-on effect is that companies who are keen to ride the storm ahead need to buckle up and ensure they are doing business with the right suppliers. That is why more and more businesses are reaching out to their suppliers and carrying out robust due diligence. They need to know who you do business with and ask suppliers to fact check areas such as financial resilience or their ESG accreditation for example.
One of our clients recently told us their team members are responding to approximately 30-60 requests a day to provide evidence of supplier due diligence. This is fast becoming the norm but why now? It is because consumers and businesses are collectively driving the demand for every company to act responsibly.
To achieve this, you need to gain visibility of every supplier your company is doing business with. Also ensure the companies are the right ones to do business with – for you and your clients.
Assign a project manager to gather and collate a list of suppliers from every department. Upload them onto a digital supplier management platform and there is no need for out-of-date spreadsheets.
The sooner all your suppliers are in one place the easier and faster it is to respond to due diligence enquiries surrounding your supply chains
Audit and score each supplier and assess the risk of doing business with them on a single supplier management platform
Be ready to provide a fully audited list of your suppliers with Pulse Market’s supplier management. Your clients will love you for this.
Request a demo today and discover a suite of tools and features for supplier management.