Supply Chain Due Diligence Checklist

Supply chain and logistics news.

Supply chain due diligence checklist. A buyer will need information about the company s supply chain in order to conduct her m a due diligence. They can include anything from suppliers distributors agents advisors and consultants and even customers. The oecd s due diligence guidance for responsible supply chains of minerals from conflict affected and high risk areas provides companies that use and trade natural resources sourced from high risk areas with further concrete guidance. By following this checklist you can learn about a company s assets.

The regulation lays down supply chain due diligence obligations for union importers of tin tantalum and tungsten their ores and gold originating from conflict affected and high risk areas in accordance with the 5 steps of the oecd guidance. Purchasing and suppliers listing of major suppliers and. The checklist is intended for risk management procurement legal professionals and cios seeking to comply with international regulations while advancing. Third parties in a modern supply chain are diverse.

Due diligence on the supply chain can be a hugely time consuming task often meeting greater resistance or delay than operational due diligence on the manager after all the supplier doesn t have the financial incentive to provide support that the manager does. A due diligence checklist is an organized way to analyze a company that you are acquiring through sale merger or another method. Explanation of supply chain and supply restrictions. A supplier risk matrix 1 7 will also need to be completed placed on file along with routine site visits 1 6 conducted.

The globalization of business increases the level of compliance risk companies face. Due diligence for scm should include from a high level with drill down. In many sectors risk based due diligence as recommended by the ungps has emerged as a practical and effective way for companies to meet this responsibility. From anti bribery and corruption laws to sanctions regimes and peps you need to stay alert to possible threats to your organization s reputation and bottom line.

Performing due diligence with regards to supply chain management is more than looking at supplier invoices for cheap prices or at what transport carriers are used and the contracts or how warehouses operate. Supply chain risk mitigation. At its basic level supply chain or third party due diligence describes the efforts taken to investigate a potential business partner. And a seller needs to be prepared to provide that information along with information about every aspect of the business immediately after signing an m a letter of intent loi.

The eu regulation will enter into force in january 2021.