While efficient logistics and supply chain management are recognised as an integral part of a firm’s competitive advantage, poor performance in logistics can still be the undoing of an otherwise successful company, according to a new blog from KYC Portal.
The company explains that procurement managers understand how impeccable attention to detail and the ability to plan for contingency is crucial to success. This includes conducting adequate due diligence before purchase, as well as leveraging new technologies, investing in new facilities or partnering with and acquiring other entities to improve a supply chain. The blog said, “Without including due diligence as part of a good risk management strategy, the consequences could be disastrous.”
Supply chain management is a large cost to businesses, with purchasing, inventory, transport, warehousing and technology, all needed for the process. Making things harder is having to identify risks which hide across the entire chain, which gets tougher the more countries supplies are spread across. KYC Portal is designed to help companies improve due diligence to prevent major problems in supply chain management.
Its technology helps businesses of all sizes and types to collate information related to entities and applicants being assessed. Via a single, centralised repository, the business can create customisable parameters, fields, rules, user rights and collaborative practices to identify risks.
In the blog post it said, “Without sufficient information on your suppliers, the smooth operation of your business could be affected. This is why it is important to know if they engage in unethical practices, if their reputation could damage your own, or if they could hurt your financial standing.
“Background checks will help you increase your control over any given link in the supply chain. However, screening is only one part of the due diligence process and is often erroneously seen as the whole process. Some practitioners are led to believe that checking names against a watchlist is all the due diligence that they need to do and that the process is completed when this screening has finished.”
The KYC Portal solution can integrate with any screening service provider and can check against multiple sources. This automated process helps companies reduce costs and risk exposure, it claims. Additionally, the platform enables an organisation to conduct ongoing monitoring on a regular basis on a subject of choice, with instant flags when a supplier or related key principles become a high-risk.
KYC Portal also completes ongoing automation of reviews, document expiry alerts and face-to-face verification interviews. By having a good relationship with suppliers, a company can ensure transparency in supply chain dealings and remove risks.
Its Customer Outreach Tool also gives suppliers direct access to input their key principles fill out required questionnaires and upload documents. Risk is calculated in real-time and based on data supplied by the customer.
To read the full blog post click here
Last week, KYC Portal released another blog post, discussing the benefits of improved data management.
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