Know Your Supplier

Assess & Manage (ESG) risks associated with your full supplier network

Do you know your supplier network, and their potential impact on your business performance & reputation?

In the present dynamic environment, where changes are rapid and can have a major impact, organisations face a broad set of risks. At the same time, governments and society increasingly hold organisations responsible for who they do business with as part of their social responsibility and for ‘’ESG well-being’’. Any associated damage can be so great that it affects the organisation’s license to operate. Supplier risk management is no longer a nice-to-have, but essential for the survival of an organisation.

Playback of this video is not currently available


Know Your Supplier

Introducing our supplier risk management solution: Know your Supplier. Through this solution, your organisation receives more insights and transparency in its suppliers and related (ESG) supply chain risks. Risks may involve topics such as (operational) supplier performance,  ESG risks and malpractices in the value chain, business continuity, 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 (of which many are ESG related, e.g. the EU Directive on Corporate Sustainability Due Diligence) scrutinizing supplier relationships, have made supplier risk mitigation a key challenge. As the CSDD dictates; companies have an obligation to do due diligence that makes them more aware of the (potential) adverse effects of their activities in the value chain.

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.

Some examples that may form risks within the supply chain network
Know your supplier graph
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
Vision & StrategyStructureProcessesPeople Stakeholder Governance Roles & Competence & Data & TechnologyReporting Management Monitoring & Incident Management Responsibilities SkillsPwC’s Supplier Risk Management Framework
Risk considerations
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 (ESG) 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 (ESG) 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
MaturityCapabilityUnstructuredBasicModerateAdvancedWorld Class

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.

Contact us

Marcel Prinsenberg

Marcel Prinsenberg

Senior Director Risk Consulting, PwC Netherlands

Tel: +31 (0)65 122 52 70

Xander de Jong

Xander de Jong

Senior Manager Supply Chain & Procurement, PwC Netherlands

Tel: +31 (0)63 927 78 20