Do your suppliers still meet the specified requirements, and do they still hold valid certificates? Are your suppliers financially sound? Does action still need to be taken? Vendor Management Risk Management allows you to properly assess whether your suppliers are meeting expectations. This is how you achieve higher compliance.
Determining supplier risk has become an increasingly important part of procurement. Gaining insight into procurement risks has long been known as the Kraljic analysis at the procurement package level. In recent years, the focus has increasingly shifted to having to monitor risk at the supplier level in order to meet the compliance expectation of regulators and other auditors. By using Risk Management in Vendor Management, you achieve higher vendor compliance.