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Know Your Supplier: This is how to manage supplier risk

Reading Time 4 minutes | Written by Henrica Westhoeve | October 26, 2022

Selecting a new supplier involves comparing options and tenders. In addition, you want to identify supplier risks in a timely manner. In this blog, we provide a concrete solution, applicable to everyone, to make the Know Your Supplier process run smoothly.

Luchthaven

Welcome on board

Managing supplier risk starts as early as supplier onboarding. For the Know Your Supplier process, you need a lot of information about the new supplier. The information needs are different for each organization. For example, it may be enough for one organization to just have the right contact information, but another organization really wants to know everything about the supplier to avoid surprises later. 

With Data Blocks with data from our D&B Data Cloud you can create your own set of data that is required for your KYS process. This means you only have to purchase the data you need in stead of huge sets of data that will not be used in the process. 

Here's how to use data strategically in your Know Your Supplier process

Because of the variety of data, Data Blocks not only helps with the understanding supplier risks, but the data can also be used for other procurement purposes, such as making sourcing decisions. We give you a number of concrete examples of what you can do with the data from the Data Blocks:

  • Expose the UBO structure of your supplier's organization with our UBO data.
  • Is the supplier part of a group or concern? If so, you may be able to purchase with economies of scale. Break down the group structures of your suppliers with Data Blocks and do the math.
  • Look at financial health of your supplier. Missing, outdated or incorrect supplier credit information can cause errors in judgment that can lead to financial loss. With Data Blocks, you are always aware of your supplier's financial status. You can even look for a backup supplier if necessary.

Mind your step: Protect your organization 

Data Blocks are ideal for effectively managing supplier risk. But there's more. For example, you can use D&B analysis and predictive scores to assess financial risk and deploy monitoring to respond quickly to changes. This way you avoid costly disruptions in the supply chain and protect your reputation. And because monitoring takes some of the work off your hands, the compliance team can focus on more complex, higher-risk cases.

When you use external data, it is important that this information is always correct and up-to-date. The data from our Data Blocks can be integrated into your own CRM- and ERP system and other business information systems. So all the data you purchase from us is always automatically up-to-date. 

Want to know more about this brand new innovative data solution? Read more about Data Blocks.

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Henrica Westhoeve

Marketing Content Officer

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