7 Areas You Need to Check on Your Vendor
What do you know about your vendor? There are many cases of vendors that have gone wrong and reasons why organizations should know who they are conducting business with. The KFC case is one of these examples. The fried chicken giant temporarily closed 900 of its stores in the UK in 2013 due to a problem with their chicken supplier. Another case is one of Nike’s factories exploiting child labor.
These cases have shown that working with the wrong vendors puts an organization’s reputation and financial stability at risk. In order to reduce such risks, organizations should know who they are dealing with. One way a company can do this is by conducting due diligence or screening of their vendors.
During the PBSA annual conference 2020, Kevin Horval and Andy Hellman shared their years of experiences regarding due diligence on vendors. There were a number of areas in which organizations should check on their vendors. These areas are shown below:
- IT: You need to check if the platforms or systems used are up to date.
- Security: It is important to make sure that your vendor implements security policies, such as password policies, or penetration tests.
- Privacy and compliance: Does your vendor adhere to GDPR regarding their data privacy? Does your vendor implement anti-bribery measures?
- Insurance: Does your vendor have adequate insurance to cover liabilities, breaches, and other risks.
- Legal: What type of legal ‘standards’ does the company follow? For example, Indonesian companies may adhere toPERMA No. 13 Year 2016 concerning procedures for handling criminal cases by corporations related to liability standards.
- Employees: Does your vendor conduct screening on their candidates? What screening standard does the company use?
- Quality: How does your vendor manage quality?
These areas could be constantly improved as due diligence continues to evolve.
Nowadays, conducting due diligence on your vendor has never been easier through our vendor screening services. Integrity Indonesia, with up to more than fifteen years of experience in the compliance industry, offers you a comprehensive due diligence service throughKnow Your Vendor™ solution.
Know Your Vendor™ solution helps our clients mitigate supply chain risks by providing a consolidated panorama for due diligence on third parties.
By using the most recent technologies to monitor our clients’ supply chains, Know Your Vendor™ allows the client to import their vendors and assigns to each of them a questionnaire, this is a critical step for the due diligence process. Clients can follow the progression of the due diligence in real time, as well as access the report and score at a click of a button. For detailed information on how Know Your Vendor™ and other compliance services can help your company,contact ustoday.