Why It's Essential to Mitigate Supply Chain Risk
May 08, 2018
Most companies work hard to reduce risk from their supply chains, as any problems related to the delivery of third-party services and products can slow down production, cause logistical headaches, and potentially hurt profits.
Therefore, it’s essential for businesses to ensure they’re actively involved in removing risks from all aspects of their supply chains, which includes not only traditional materials suppliers, but third-party contractors. This makes contractor prequalification essential.
A new report from the Retail Industry Leaders Association and Auburn University exposed the best and most creative practices big brands are using to mitigate risk throughout their supply chains, and why it’s critical to ensure contractors are sticking to guidelines.
Large corporations are especially concerned that their reputation for being environmentally-friendly businesses might be tarnished if they’re caught working with suppliers that don’t hold the same ideals.
Many companies are riding a wave of positive publicity after announcing sustainability initiatives, and if suppliers and external vendors fail to comply with the same standards, it could reflect poorly on a corporation. The threat of this scenario makes a comprehensive compliance management program essential for both hiring companies and their contractors.
To eliminate unwanted suppliers and third-party service providers right away, some companies may require potential suppliers to complete quick prequalification surveys to gauge whether their general statements fall in line with the company’s sustainability, safety, and compliance guidelines.
However, basing third-party relationships on one small survey isn’t ideal for reducing supply chain risk or ensuring contractors abide by set sustainability policies. While it may be one way to narrow the pool of potential partners, it isn’t always reliable and potential problems can easily be overlooked.
Businesses that want a thorough prequalification of their suppliers can use BROWZ to help qualify potential partners. By using BROWZ, hiring companies can have assurance that they are working with contractors that align company’s own corporate guidelines and have the appropriate sustainability practices in place.
Are you looking for ways to improve your contractor prequalification program? Download the eBook Top 11 Ways to Jumpstart your Contractor Qualification program.
- Supplier Management
- contractor pre qualification
- corporate social responsibility
- risk management
- compliance management
- safety compliance
- contractor safety
- supply chain management
- risk mitigation
- safety statistics
- supply chain management
- contractor management
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- Why It's Essential to Mitigate Supply Chain Risk