Third-party risk and onboard new vendors at speed with Genpact.

The spread of the virus has surely posed a great challenge for the businesses while operating the complex supply chains that have been disrupted. The main question that has arisen for the businesses is to get new alternative vendors, so that the business is moving.

Genpact has made the identification of six parameters. These six parameters identified by Genpact will help and enable businesses to identify which one poses major risk. Genpact when assessing new suppliers makes sure to outline factors which are critical. 

This shall further keep your business going while maintaining robust diligence. It is difficult for a company to identify threats to business continuity, when stock of many suppliers is taken. In such a situation from the global list, companies should prioritize key suppliers and here are six ways for taking immediate action. 

Region of Operation:-

The company needs to make the identification in their extended supplier ecosystem, of the third parties. The suppliers from regions which are affected by the virus and include the ones with different lockdowns.

Supplier Criticality:-

There should be an evaluation made by the company with single source or availability of few alternatives in markets. This evaluation shall involve evaluation related to de-risking themselves with few suppliers and on the need to expand options.

Engagement risk and Supply-chain logistic risk:-

The key supplies or material category having significant impact or with longer recovery time need to be flagged. There should also be assessment made on suppliers having long-haul transportation due to impact on ports and ship liners. 

Movement restrictions and Financial risk exposure:-

There can also be a labor shortage because of movement restriction and their migratory nature while impacting the entire business chain. There can also be an impact on tier-two suppliers than tier-one suppliers because of evolving crises and existing databases not reflecting supplier problems. 

The precautionary measures and solutions given by Genpact:-

Genpact further gives some key solutions and precautionary measures to protect the company by using additional safeguards and to perform detailed checks. There should be observance given for downstream requirements to look at supply closure’s impact. 

The availability of critical raw material should also be made. Additional crises should also be monitored including labor quarantines, site closures, supply defaults, non-registered companies or post payment. The movement of stock-prices should also be monitored effectively. 

There should also be additional searches made for triggers or events happening in 24 to 72 hours while using metrics like daily growth rate and Ro. The different processes of finding new vendors don’t always happen seamlessly and quickly. Genpact further mentions certain points for quick onboarding and without exposing to additional risks.

Vetting New suppliers and quickly:

The onboarding and assessment of new suppliers should happen quickly without compromising on standards of compliance. Genpact has given some essential factors to check on for any risks faced by the company. 

The sanctions such as, of Office of Foreign Asset Control (OFAC) against Global list should be checked. The potential supply disruption can be identified by checking the country of origin from high-risk territories. The negative information should be checked from Boards of directors and owners. 

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