Supplier Management

Many organizations have turned to global third-party providers to manage business operations through complex relationships. This trend has challenged management to reexamine internal controls such as internal audit, information security, and business continuity, disaster recovery, fraud protection, and data privacy.

 
It is no longer enough to ensure that the organization is meeting its internal regulatory compliance requirements. Unsafe cars, lead contaminated toys, pet food containing dangerous fillers, and medications formulated with treacherous levels of key ingredients are examples of supply chain failures. Such failures typically involve costly regulatory penalties and fines. What's common to these organizations is that the brands of the companies affected were not damaged by their own overt acts, but rather by those of suppliers that did not adhere to government regulations, safety/quality standards, and codes of conduct. In addition to the product safety and sustainability risks, regulatory penalties and fines can run into the millions of dollars for violations of regulations such as the US Foreign Corrupt Practices Act or Dodd-Frank/Conflict Minerals.


FulcrumWay Risk Advisors can help mitigate the risk of costly violations across international markets while managing compliance costs. We provide Advanced Controls implementation services that enable organizations to monitor trading partner compliance and by proactively identifying non-compliant partners and suppliers before problems arise.
We enable organizations to integrate supplier management process into the enterprise risk management (ERM) program using the latest capabilities of Advanced Controls. 

We can implement a Risk Based Supplier Classification within the ERP system and extend supplier controls via a multidimensional approach by enabling your organization to:

•    Control supplier handling confidential data that is exported outside country borders for the suppliers providing an outsourcing or offshoring service
•    Comply with requirements set forth by data privacy and information security groups aimed at preventing unauthorized access or storage
•    Analyze ERP data to identify incidents requiring actions related to supplier risks
•    Enable internal auditors to effectively perform security audits of suppliers