Datanovel reveals cases when an existing supplier was acquired, dissolved, and subsequently the new owner quietly took over the buyer’s orders.
Arising risks:
- The new owner might be not an existing supplier, and therefore has never been approved by the buyer.
- The new owner might be non-compliant with the buyer’s policies such as QHSE, Modern Slavery and ABC.
- The most recently collected due diligence might already be irrelevant.
An unscheduled review is required for such cases, onboarding of new suppliers might be needed.
An extract from Datanovel report (example):
More compliance and supply risks:
Datanovel will not solve all compliance and supply risks but taking simple actions over our finding delivers quick wins that can also be used to back up the necessity of the frequent monitoring of the above issues.