Meet Industry Standards and Decrease Risk with Digital Vendor ManagementDecember 21, 2018
Reports of poor working conditions in overseas factories, a lack of sustainable products and delayed delivery times prove that when vendor accountability and transparency aren’t up to par, a company’s sourcing strategies can quickly go awry. Suppliers, vendors and additional third parties involved in the design, manufacturing and delivery of your product set the precedent for a company’s success. Thus, keeping close watch on them will become crucial in the long run.
Working to maintain ethical behavior through Corporate Social Responsibility (CSR) initiatives and ensuring Good Manufacturing Practices can help companies avoid the problems that are all too common in the sourcing industry. In pursuit of this goal, making sure vendors comply to certain standards sensibly fits into the picture. A digital vendor management solution can help centralize the process of evaluating, managing and reporting on all the details, which simplifies complexities and makes for a more seamless approach.
Understand who you are bringing on board
Achieving compliance starts with recruiting the right vendors. A digital system eliminates the need for dealing with various paper forms when evaluating options. Instead, cloud-based interactive forms allow vendors to complete questionnaires, audits, inspections, trainings and other documents over the platform, cutting out extra time and resources. Moving forward with the vendors you choose, keeping relevant documents in one place such as an online document library allows for the same benefits of a faster, more accessible compliance check-up.
When a new vendor is added, the next step is onboarding them so they can become familiar with the company and the processes in place. Through various workflow and achievement models that provide full transparency and accountability with calendars, alerts and collaboration, the onboarding process becomes standardized and fast. In addition, you can offer all of the worldwide vendors you manage the same training and keep track of their progress in one location via the digital platform.
Set a success plan and keep up with it
As more vendors are onboarded, frequent evaluation is essential to make sure compliance standards are being met. With all vendor information in one location, you can compile and analyze performance statistics related to global vendors. The full-picture view of the vendor both exposes areas of weakness and highlights what’s being done well. To address areas of improvement, a digital solution often helps create and manage corrective actions plans for the future. This transparency ultimately leads to better sourcing decisions.
Another performance measure enabled through a compliance management solution is the vendor scorecard. Based on performance metrics, supplier scorecards and report cards give companies more insight into where each one stands, which is useful when assessing and comparing vendors. In addition to your own company’s standards, government-mandated compliance regulations must be followed, and you can track adherence through standardized forms and scheduling options for onsite inspections, all available in one place.
Reduce risk, ensure CSR compliance and protect your brand with Andromeda Vendor Compliance
NGC’s cloud-based Andromeda Vendor Management is a complete solution that caters to all aspects of vendor compliance. From inquiring about and training a new vendor to staying consistent with audits and assessments, Andromeda Vendor Management streamlines the process that’s become increasingly crucial for apparel, fashion and footwear brands and retailers. While non-compliance can possibly result in costly litigation, a negative public image and loss of customers and revenue, compliant vendors help companies win market share while functioning in an ethically and morally sound environment.
Interested in experiencing the solution for yourself? Andromeda experts will be at NRF 2019! Meet with us at booth #4523 to learn more about how NGC’s complete suite of Andromeda solutions can help you get in the fast lane on the road to digital transformation.
For more information about the Andromeda Vendor Management platform, click here.