Establishing a Vendor Due Diligence Program
The people and companies that you do business with are often seen as an extension of your company. These include suppliers and other vendors that provide your company with the products and services necessary to grow your business. We know that protecting your business and its reputation from any negative images is a top priority.
Developing and implementing a Vendor Due Diligence Program to investigate and vet your suppliers, vendors and third-parties, before and during their relationship with your company, is an important step in safeguarding the reputation of your business.
Start with the Basics
Let’s take a look at just a few of the things that Sterling Diligence believes should be part of a vendor due diligence program. Keep in mind that the list below is not all inclusive. In fact, our recommendations below only cover a small fraction of the data points that Sterling Diligence investigates.
You should be investigating new and current vendor relationships to determine:
Is the Vendor Ethical?
Which could include checking for things like:
- Conflicts of interest
- Fraudulent behavior
- Links to criminal and terrorist organizations
- Regulatory violations
Is the Vendor Financially Sound?
Which could include checking for things like:
- Bankruptcies
- Liens
- Excessive debt
- Cash-flow challenges
- Tax liabilities
Does the Vendor have a Good Reputation?
Which could include checking for things like:
- Negative media exposure
- Negative social media activity
Looking to engage a new vendor relationship or concerned about the viability of an existing vendor? That is where Sterling Diligence comes in. Along with a team of industry experts, we offer Sterling GlobalIQ, a complete and cloud-based solution that helps minimize risks, reduce costs and make your vendor due diligence processes more productive.