How well do you know your suppliers? And what visibility do you have into their extended supplier relationships?
Supplier transparency and visibility are urgent issues for your organization, customers, the boardroom, taxpayers and others who touch your organization, product or service. When an organization lacks visibility and cannot meet transparency demands, it invites supplier disruptions, negative exposure to brand and reputation, and ultimately lost revenue.
Expectations regarding an organization’s ability to gain deeper insight into supplier relationships are vastly different today than they were five to 10 years ago. Conventional procurement practices prioritize supplier information, but come up short because they focus on the basics, such as the suppliers’ products, services, contract details, location and the amount of spend.
This approach provides nowhere near enough information to support the needs of the business and manage risk. Procurement needs extended visibility into a supplier’s business, behavioral, geopolitical and cultural background including, as examples, financial viability, performance, workplace policies, factory conditions and their strategic position in your purchasing portfolio.
Many procurement teams believe that they have sufficient supplier visibility and transparency, yet every day organizations discover startling information about a supplier that forces reactive responses and decisions. From minor discrepancies to large, ethical and legal emergencies (such as the use of child labor, conflict minerals and unsafe facilities) every supplier shortcoming impacts the organization.
In order to avoid a crisis, it’s important to manage the entire lifecycle of each supplier, from demand to contract. BravoAdvantage provides procurement teams with unmatched visibility into the supply base, with a supplier-centric approach that ensures complete transparency throughout the entire procurement process. With BravoSolution, you can be confident that you will have the insight and data you need to uncover issues and opportunities, make informed decisions and meet the transparency demands of your key stakeholders. Learn more about BravoAdvantage Supplier Value Management here.
Why Address the Need for Supplier Visibility & Transparency?
“For the most part, a company never anticipates its suppliers will be using child labor to provide a product, but for many large corporations with production facilities or suppliers in poorer countries, that is exactly what is, and has been, happening. And the reputation damage inflicted by accusations that a company uses child labor to make a profit, even if unaware, is devastating.”
-Emily Holbrook, editor of Risk Management magazine and the Risk Management Monitor blog