Comprehensive Supplier Due Diligence to Ensure Continued Compliance in Procurement

Procurement often involves significant expenses and long-term contractual relationships. To safeguard company's interests, it is crucial for procurement personnel to thoroughly understand the supplier's background. A comprehensive supplier due diligence should not only cover basic information such as company registration, directors, shareholders, and litigation records, but also include adverse media records both locally and in the supplier’s operating area to ensure that the supplier has a good business history.

Some suppliers may provide services or products through agents, who may lack experience or even operate using the addresses of other companies. To mitigate potential procurement risks, procurement personnel should conduct on-site investigations both before and after the procurement process and continuously monitor the supplier’s performance after the procurement to ensure that their operations, services, and product quality are maintained.