How much would a critical supplier's failure cost your company?
Aravo Supplier Risk Management helps companies reduce the possibility of product or service disruptions due to supply chain failures. Our Fortune 1000 clients tell us that their biggest concerns about supply chain risk include:
- Financial impact caused by supply chain failures or disruptions
- Brand exposure due to 3rd party data privacy and information security risk
- Product or service disruptions due to financial or business continuity risk
- Inability to assess which suppliers pose the highest risk of failure
- Inability to ensure supplier regulatory compliance
It's no longer enough to ensure that your company is meeting its internal regulatory compliance requirements. Unsafe cars, toys contaminated by lead, 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 them 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.
And it isn't just about product safety and sustainability. 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. As the list of regulations continues to grow, how do you mitigate the risk of costly violations across international markets while managing compliance costs? By implementing systems and controls to gather and monitor trading partner compliance and by proactively identifying non-compliant partners and suppliers before problems arise.
Aravo has helped companies across multiple industries design and implement risk management programs, providing an automated, flexible, and scalable risk management solution that provides a single, centralized, view of supplier rick across business units and geographies.