Every supplier due diligence begins with comprehensive planning followed by in-depth analysis and assessment of the supplier in question. A well structured supplier due diligence report can help you conduct a SWOT analysis of your supplier and monitor your supply chain to ensure that good suppliers are retained and bad suppliers are removed. This is where a firm like Global-Ability can step in to help you decide what the best value chain should look like. A supplier due diligence process firstly identifies the best supplier or vendor. Secondly, it evaluates the supplier’s product and technology competencies, process design and control, workforce planning, quality of service and deliverables, and ability to forge strategic partnerships and alliances in the industry.

Supplier due diligence is a discipline to determine the real potential and risks of your supplier group. To properly implement supplier due diligence, you need to undertake comprehensive assessment of several critical components. Some of the key areas you need to focus include:

• Cultural fitment
• Assessment of technology and infrastructure hurdles
• Analysis of inherent and external roadblocks
• Financial feasibility of the supplier

Additionally, supplier due diligence should also address these factors, at a minimum:

• Adherence to key operational metrics like customer satisfaction, certifications and independent assessments and audits
• Identification and definition of management systems that aligns with customer driven and practice driven policies
• Benchmarking of performance criterion and containment of negative performance drivers
• Approaches to planning and process organization like key process metrics, using statistical tools, analytical tools, and error-preventive tools
• Relationships between the key business driving units of the organization

Innovation in learning and embedding principles of continuous improvement in every operational phase

Supplier due diligence is an essential component in risk assessment process. These are the important parts in the value chain of a supplier due diligence. For all types of procurement and vendor activities, the following components go a long way in ensuring business stability and continuity:

Organization Impact

Customer Impact

• Assessment of supply chain
• Assessment of brand value

Impact of value capture

• Assessment of contract management
• Development of sourcing plan
• Assessment of supply base

Impact on process and IT systems

For your project to be a successful one, proper supplier due diligence is required. The factors you need to focus on include:

• Commercial
• Technical
• Operational
• Strategic
• Environmental
• Contractual
• Market

A supplier due diligence initiative enables you maintain a high standard throughout your procurement and maintenance chain, and reduce the need to engage a multitude of external assessment entities. You achieve a competitive edge about many aspects of the business, like:

• Positioning of your company
• Streamlining of various processes like IT, product management, supplier management, etc.
• Forecast of financials and associated risk assessment
• Taxes and other financials
• Treasury and risk management

Global-Ability’s supplier due diligence reports has provided immense value to our clients from vendor selection to pricing to awareness and much more. Our due diligence competencies encompass:

• Financial statement representations
• Supplier agreements
• Transaction fraud
• Undisclosed litigation
• Executive reference/background checks
• Payroll discrepancies
• Unreported equity interests