Industry Standards: Supplier Risk Management for Manufacturers
Supplier risk management is essential for the manufacturing industry.
Manufacturers rely on suppliers for a variety of services, such as producing, handling, and transporting goods. Because of this necessary dependence, manufacturers’ liabilities increase when it comes to keeping important information secure across the supply chain.
Modern companies know that third-party risk management (TPRM) software helps create a safe and efficient environment in which to operate when working with suppliers. TPRM software helps companies maintain third-party compliance, monitor supply chain risks, and invest in vendor management software.
Maintain Third-Party Compliance
Industry standards have been set forth to help the manufacturing industry keep its data secure. A primary goal of third-party risk management is to maintain compliance with pertinent regulations across all suppliers.
Manufacturers working with third parties must comply with many international requirements. Some of these frameworks, standards and laws include:
- – Office of Foreign Assets Control (OFAC) Sanctions List
- – Dodd-Frank Act (Conflict Minerals)
- – OECD Due Diligence Guidance for Responsible Supply Chains
- – UK Modern Slavery Act 2015
- – Waste from Electrical and Electronic Equipment (WEE)
- – Directive 2015/2366/EU
- – Drug Supply Chain Security Act
- – Title 21 CFR Part 11
- – Foreign Corrupt Practices Act (FCPA)
- – General Data Protection Regulation (GDPR)
- – California Consumer Protection Act (CCPA)
And while many are equipped to meet these mandatory regulations, their suppliers might not be. That’s why a third-party risk management strategy is important: Manufacturers and their suppliers must maintain compliance with regulations across the board.
Supply Chain Risk Assessment and Monitoring
For a rock-solid third-party risk management strategy, supplier risk assessment and monitoring must be at the top of your checklist.
It all starts with vetting and selecting vendors. Before you onboard a supplier, you must understand the risk it might pose to your organization. You can use this information to make the best selection for your manufacturing business, even using the information to initiate information security changes in the suppliers you wish to use.
From there, technology such as Vendorpedia’s Global Risk Exchange can help identify changes in supplier behavior over time. This gives manufacturers constant oversight and allows them to prevent potential liabilities from ever coming to fruition.
Invest in Vendor Risk Management Software
Vendor Risk Management software is technology that powers your TPRM program.
Manufacturers reap many benefits from it, including mitigating risk and threats from vendors, suppliers and third parties. With proven third-party risk management software, a company can gain clarity at every stage of the vendor lifecycle, from supplier onboarding to offboarding, all while:
- – Completing supplier questionnaires faster
- – Gaining more value from vendor data
- – Identifying contractual gaps to hold every supplier accountable
- – Monitoring suppliers’ security, privacy, and compliance
- – Getting alerts when vendors experience a breach
With these advantages, manufacturers don’t have to spin plates anymore when it comes to vendor management. Everything is systematized, standardized, and simplified in one place that all stakeholders can access.
Third-Party Risk Management (TPRM) the Easy Way
More and more manufacturers are turning to third-party risk management as the framework against which their supplier relationships are built.
It’s not just about compliance. It’s about increasing the speed at which your team can vett and onboard suppliers. It’s about giving them the ongoing monitoring tools they need to be confident throughout the supplier relationship. And it’s about building solid, lasting relationships with suppliers from the start.
The OneTrust Vendorpedia team works with thousands of customers to help mature their third-party risk management program and manage the entire supply chain. With the intelligence and automation to scale your program, our third-party risk management software reduces risks and increases efficiency throughout the supply chain.