CONDUCTING SUPPLY CHAIN DUE DILIGENCE
In today’s globally connected world, companies understand that third-party relationships form a cornerstone of many daily operations, potentially providing a critical edge over competitors. Third parties provide a means for companies to enlist expertise and resources without investing to bring those capabilities or services in-house. However, working with external partners comes with potential risks which should be mitigated through proactive third party due diligence.
Of course, there are myriad advantages to operating a global supply chain. From a cost perspective, it may allows businesses to take advantage of cheaper foreign markets. Companies might source materials from countries with lower labour and production costs, for example. Global supply chains also provide companies with diversification and the flexibility to quickly adjust their operations to meet fluctuating customer demand. This allows them to respond to changes in the market, such as new product releases or a shift in consumer preferences.
Efficiency can be greatly improved. By their nature, global supply chains are designed to be streamlined. Optimising processes can reduce waste and raise productivity. By leveraging the latest technology and data analytics, global supply chains can also ensure higher levels of quality control, which may result in improved customer satisfaction and loyalty. In addition, global supply chains provide opportunities for businesses to expand their reach into new markets and tap into new sources of revenue.
Jan-Mar 2024 Issue
Richard Summerfield