Supply Chain Due Diligence is a critical process that companies must undertake to ensure that their sourcing, procurement, and supplier management practices align with responsible business standards and regulations. With the increasing focus on environmental, social, and governance (ESG) issues, the practice has become a vital aspect of risk management for companies of all sizes. […]
Supply Chain Management
What is Supply Chain Sustainability and How to Manage it?
As consumers become more conscious of the impact their choices have on the environment and society, businesses are increasingly being held accountable for the sustainability of their global supply chain. With companies allocating upwards of 80% of their budget to procurement, supply chain sustainability has become a crucial aspect of corporate social responsibility. […]
What is a Supplier Risk Assessment – Why it’s Important
The general purpose of a supplier risk assessment is to ensure that a business is working with reliable and trustworthy suppliers. This is important because a company’s suppliers play a critical role in its overall operations, as they provide the raw materials, components, and services that are necessary to produce and deliver products and services to customers. […]
5 Challenges When Switching From Paper-based Inspections to Digital Inspections
Table of contents If you are a business that relies on paper-based inspections, you are likely familiar with the challenges that come with this type of system. Paper-based inspections can be cumbersome and inefficient, from time-consuming data entry to the difficulty of tracking and storing inspection data. Fortunately, there is a better way. Digital inspections […]
On-site vs Remote Audits: Their Advantages and Disadvantages
The Covid-19 pandemic quickly pushed businesses to remote work and to digitize previously manual processes. The same was said for the business’s external and internal auditing processes. As health and safety risks of the global pandemic increased, the traditional way of auditing primarily on-site needed adjusting towards remote auditing. This is only magnified for businesses involved in a globalized supply chain that regularly audits their suppliers. […]
10 Supplier Management Best Practices
The supply chain management landscape has changed significantly over the past two years. As noted by Supply Chain 24/7, 84% of enterprise CFOs now see supply chain disruptions as moderate or severe risks. And even if suppliers don’t experience shortages or work stoppages, getting goods where they’re going is more expensive.
Transportation costs may increase by 600% compared to pre-pandemic levels. This increase is dependent on the origin and destination of goods, as well as the mode of transportation used.
The result? Supplier diversification. Companies, large and small, now understand the danger of relying on one supplier and have started using multiple suppliers. With more suppliers, however, comes more complexity, in turn creating a need for more robust supplier management. […]
Managing Human Rights and Environmental Impacts in Supply Chains: The Proposed EC Directive on Corporate Sustainability Due Diligence and What it Means for Businesses with Global Supply Chains
What is the EC Draft Directive on Corporate Sustainability Due Diligence? Proposed by the European Commission in February 2022, the EC Directive on Corporate Sustainability Due Diligence aims to force global brands to play a key role in building a “just and sustainable economy” through their compliance with rules that enforce the “respect of human […]
What is a SMETA Audit and Why You Need One
Social responsibility and sustainability are now critical components of business success. But in order to effectively deploy and integrate environmental, social, and governance (ESG) frameworks, companies need to know what’s working, what isn’t, and what needs to change across current operations. A SMETA audit can help. What is a SMETA Audit? SMETA stands for the […]
Tier 1, 2, and 3 Suppliers: What They Are and Why They Matter for Your Supply Chain
Do you know who your tier 1, 2, and 3 suppliers are? If not, you are not alone. According to a recent survey, only 6% of U.S. companies have clear visibility of their entire supply chain. This can lead to serious risks and inefficiencies for your business and your final product. In this blog post, […]
Why the German Supply Chain Act Will Change How Thousands of Companies Around the Globe Manage Social & Environmental Compliance – For Good!
If you ask most North American EHS, Quality, or Supply Chain Directors if their companies have significant social or environmental impacts, you would probably get a similar response from most. Well, no we’re not in a high-risk sector … All our production is in the US so for us that is not really an issue […]
Certainty and DNV Webinar: The importance of supplier due diligence, quality assurance, and compliance management
Recently, we had the opportunity of sitting down with DNV to discuss the growing global supply chain challenges in today’s business environment. Also, our expert panelists Florian Mueller, Global Product & Business Development Director at DNV, Joy Laing, Global Director of Supply Chain Management Services at DNV, and Neil Marshall, Senior Advisor at DNV discussed […]
Audit Types Explained: What You Need to Know About First, Second, and Third-Party Audits
Auditing is a process of verifying and evaluating a business’s compliance, quality, and performance. However, there are different types of audits that serve different purposes and have different requirements. In this blog post, you will learn what first-party, second-party, and third-party audits are, how they differ, and why they are important for your business […]
The Supplier Compliance Audit: What it is (and Why You Need One)
Supply chain issues aren’t going anywhere. According to research firm McKinsey, 2022 comes with three key concerns: Labor shortages, equipment availability, and the “ripple effect” of continuing global bottlenecks. For organizations, this landscape creates a dual challenge. Not only do they need to ensure the reliability and stability of supply chains but must also take […]
What is a Supply Chain Vulnerability Assessment?
The complexity of managing global supply chains has significantly escalated over the past ten years, a situation further exacerbated by the Pandemic. According to the Institute for Supply Management, the Backlog of Orders Index for the manufacturing sector reached an unprecedented 71% in May 2021. This surge is primarily attributed to extended lead times and […]
Understanding Social Compliance And Self-Audits
Businesses that have a sense of purpose – that is, they are motivated to provide value for all stakeholders and to improve the local and global society – tend to be more successful, generating more revenue. According to a survey, 58% of businesses that prioritize operating with purpose witnessed a 10% revenue increase in three years. Social […]
