Solutions

Automating Vendor Compliances

Vendor Management process can not only be expensive (both in terms of resources and cost) but also expose the entire organization to unprecedented levels of risks, if left unchecked. According to a study by The Hackett Group, “It costs roughly $700-$1,400 in internal costs (i.e., labor, outsourcing, technology and related overhead) to source each supplier, set it up in internal systems, transact with it and manage the relationship on an ongoing basis. Even beyond money, dealing with paperwork manually, fixing errors and discrepancies, and communicating with suppliers over inquiries costs companies about 6500 hours a year.” Each supplier added to the supply chain can result in numerous compliance risks. Are they utilizing corrupt practices somewhere down the line like forced labor, poor work conditions, or even human trafficking? Without an efficient process in place alongside the skill and man-hours to verify each of your suppliers compliance standards as well as consistent checks to ensure their standards are regularly updated and maintained, businesses run the risk of severe ethical and reputational harm to the business.