Know Your Supplier
Assess & Manage risks associated with your full supplier network
Do you know your supplier network, and their possible impact on your business performance?
Nowadays, organisations are exposed to many risks if they do not know their suppliers. Supplier risk management is therefore not an extra but a ‘must have’.
Through our solution your organisation receives more insights and transparency in its suppliers and related supply chain risks. Risks may involve topics such as (operational) supplier performance, business continuity, sustainability, fraud & bribery, security risk, money laundering, child labour, and other legal/organisational compliance requirements.
Increasing global supply chain complexity across industries and the convergence of a wide range of regulations scrutinizing supplier relationships have made supplier risk mitigation a key challenge.
Multiple entities can become involved in the provision of a product or service, and organisations are increasingly being held responsible for understanding these upstream relationships. Therefore, it is crucial to not only know your 1st tier suppliers, but also other tiers as well (chain/network of suppliers), and from the start of the relationship until the end of the relationship.
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Know Your Supplier
Some examples that may form risks within the supply chain network
Our (Know Your Supplier) solution is a robust framework that assists in supplier risk assessment and monitoring of suppliers and is supported by the right digital tooling
The complexity and uncertainty of supplier network calls for a holistic framework that not only monitors and manages your supplier base via analysis on internal and external data sets, but also, allows you to turn those data sets into actionable insights using enriched algorithms and advanced analytics.
PwC’s Know Your Supplier framework is a comprehensive and practical Supplier Risk Management approach that:
- maintains supplier databases
- gathers real time data
- enables AI-driven insights
- identifies potential high-risk areas
- helps develop mitigation measures
- has a fit-for-purpose operating model.
Achieve deeper insights into your supplier risks via a holistic view on all risk types combined with a thorough and well-deployed risk management framework
Organisations that adopt a data- and analytics-driven supplier risk management framework achieve the following benefits:
- Full supplier network transparency, provision of additional supplier network transparency beyond the 1st tier suppliers;
- Greater coverage in terms of supplier risk types, including compliance and supplier performance, providing a more complete and accurate supply chain risk overview;
- Unified and centralized approach and deployment of supplier risk management framework leading to a uniform approach for your organisation;
- An advanced monitoring system that allows you to adequately manage your supplier risks, not only from the start (due diligence), but also during the execution of the working relationship until the termination.
Rome was not built in one day, nor can World Class Supplier Risk Management be realized in one day
A phased approach based on your maturity and ambition is required to define the right way forward
PwC's Know Your Supplier maturity assessment will determine your supplier risk assessment process's current stage of maturity: the first milestone on the road to World Class
No formal structures, procedures nor tooling in place. Reliant on individual awareness and action.
Basic vetting and supplier risk procedures in place for some 1st tier suppliers. Manual processing and limited reporting.
Transparency and management of 1st tier supplier risks. Sound governance and procedures in place. Basic digitisation of monitoring and reporting.
All 1st tier and some 2nd and 3rd tier suppliers in scope. Well- established governance, policies and procedures. Risk mitigation mainly detective and corrective. Mostly digital risk assessments and follow ups.
Full transparency of supply chains. All risk types in scope and managed. Preventive measures defined. Full digitisation of risk monitoring and reporting. Uniformly deployed over entire company.
