Vendor vetting

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News travels fast in this digital age and while it may be better for stress levels to avoid being bombarded with the influx of negative news, in the case of supply chain, forewarned is fore-armed. Keeping abreast of news about your suppliers enables you to mitigate risk.
Staying up-to-date with what’s being reported about past, current and potential vendors can help you understand potential risks earlier and gives you enough time to strategise before it turns into a crisis, according to Rudi Kruger, General Manager of Data Services at LexisNexis South Africa.
“Supply chain officers must have a clear, consistent monitoring strategy to uncover threats before they become a problem, enabling them to plan effectively. It is their responsibility to vet existing and future vendors and keep track of the headlines to identify potential risks associated with the company’s chosen suppliers,” says Rudi.
However, it must be understood that the level of monitoring required is not practical with a do-it-yourself approach, especially if you are relying on the worldwide web.
“By making use of the worldwide web, which is largely unregulated, to keep track of news you run the risk of missing out on pertinent information. Additionally, it requires a lot of manpower to manually sift through the news to determine the level of risk,” Rudi emphasises.
To assist in simplifying this tedious task, he suggests making use of third-party data to enhance research instead of relying on the worldwide web. “Monitoring tools that have alert functionality and strong databases on verified content are a lot more reliable and efficient for mitigating financial and reputational risk.
A monitoring tool that is extremely useful in news tracking is Lexis Diligence, an easy to use web-based system from LexisNexis Data Services. The solution can uncover negative news quickly from over 23 000 news sources, going back up to 35 years. Used in conjunction with Lexis ProcureCheck, supply chain officers can equip themselves with valuable knowledge in the decision-making process.
www.lexisnexis.co.za/lexisdiligence
www.lexisnexis.co.za/lexisprocurecheck

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