Complex products are made from parts and materials taken from many sources, and it is important companies perform adequate due diligence on the internal controls of their direct suppliers to gain visibility into how they perform their own supply chain due diligence. This is known as third-party due diligence.
Why Is It Important for Your Business?
With transparency and ethical business practices emerging as a powerful value-add — or, if handled improperly, a great risk — to brands, companies must perform due diligence on their suppliers, and provide education about how to execute due diligence programs and promote the ethical sourcing of materials.
Companies in the food, electronics, and fashion industries to name a few have suffered reputational and financial damage as a result of human trafficking and modern slavery in their supply chains, and new laws and regulations are continuing to emerge that create greater consequences for failing to perform adequate supply chain due diligence. The COVID-19 pandemic has added an extra layer of complexity, with the demand for personal protective equipment (PPE) growing, companies meeting the demand risk falling behind in their human trafficking and environmental reporting, which can lead to problems as the world returns to normal.
Third-Party Due Diligence Providers
At its core, third-party due diligence is a matter of data. Having access to the right information can protect your company from reputational damage and lawsuits, as well as promote ethical business practices in your supply chains. Assent is a supply chain data management platform that provides companies a streamlined, intuitive way to perform necessary due diligence on suppliers. Assent also offers tools and services to help companies maintain their due diligence programs long-term, such as subject matter expert insight and media monitoring.
Protecting Your Brand Through Due Diligence
As consumers, investors, and governments champion ethical business practices, it is important companies are performing necessary due diligence that supports their supply chains. The data collected through effective due diligence provides protection against reputational damage, fines, and litigation.
Assent Compliance is an industry leader in compliance reporting. Backed by subject matter experts with real-world experience, our solution has helped hundreds of companies develop transparency in their supply chains and protect their brand.
For more information about how Assent can help you build supply chain transparency and protect your brand, contact us today.
