Supplier Diligence Process Template (DORA-Conformant)
📋
Supplier Diligence Process Template (DORA-Conformant)
Streamline supplier assessments with our DORA-conformant diligence process, ensuring comprehensive risk evaluation and compliance verification.
1
Collect supplier information
2
Evaluate supplier risk profile
3
Verify supplier documentation
4
Assess supplier financial stability
5
Check supplier references
6
Conduct site visit
7
Review compliance with regulations
8
Collect information on supplier's supply chain
9
Approval: Risk Assessment
10
Compile supplier diligence report
11
Present findings to stakeholders
12
Approval: Stakeholder Decision
Collect supplier information
Let’s kick off our Supplier Diligence Process! Collecting supplier information is the first vital step in building a strong relationship. It lays the groundwork for understanding who you are dealing with. This task is about gathering essential details such as names, addresses, contact details, and legal documents. By amassing this data, you'll create a clearer picture of the supplier and their business operations. Challenges can arise from incomplete information, so ensure you follow up actively. Equip yourself with tools like spreadsheets or CRM software to streamline this process!
Evaluate supplier risk profile
Now it’s time to delve deep into the heart of supplier diligence by evaluating the supplier's risk profile. Why is this step crucial? Identifying potential risks early on can help you mitigate problems before they arise! You'll analyze factors like operational risks, compliance issues, and geopolitical concerns. To create a robust profile, consider using risk assessment frameworks. Be cautious, as new risks can emerge, but keep your ears to the ground to address any worries swiftly!
1
Operational risks
2
Financial instability
3
Legal compliance issues
4
Geopolitical concerns
5
Brand reputation risks
1
Low
2
Medium
3
High
4
Critical
5
Not Applicable
Verify supplier documentation
Documentation verification is like the checks and balances of our supplier diligence process! This task ensures that all the paperwork is in order and authentic. From business licenses to tax compliance documents, verifying these elements can save you from future headaches. The challenge? Inconsistent document quality or missing paperwork can throw a wrench in the works. Stay organized by creating a checklist to ensure nothing gets overlooked!
1
Business registration certificate
2
Tax compliance document
3
Insurance certificate
4
Quality certifications
5
Bank account information
Assess supplier financial stability
Let’s get into the numbers! Assessing a supplier's financial stability helps you gauge their ability to deliver reliably in the long run. This could involve checking financial statements, credit ratings, or profit margins. Are they a stable partner or a risky investment? Be prepared for the task of sifting through data, as financial assessments can sometimes be complex. Utilizing financial analysis software can make this task much easier!
Financial Stability Review for {{form.Supplier's_full_legal_name}}
1
Positive cash flow
2
Stable profit margins
3
Good credit rating
4
Decrease in debt levels
5
Consistent revenue growth
Check supplier references
We rely on supplier references to gain real-world insights into a supplier's performance. This task involves contacting previous clients to corroborate claims made by the supplier. How do we ensure we receive unbiased feedback? Ask standardized questions to compare responses. Anticipate challenges like unresponsive references or subjective opinions. Keeping a record of questions asked and responses received can facilitate deeper analysis of the responses.
1
Former customer A
2
Former customer B
3
Former customer C
4
Industry peer
5
Trade association
Conduct site visit
A site visit allows you to see firsthand how the supplier operates, uncovering details that documents alone can't reveal. Isn’t it remarkable what you can learn on-site? This task can yield valuable insights into working conditions, operational capabilities, and overall atmosphere. What essential areas should you inspect? Be prepared for challenges like scheduling conflicts or too little time on-site. A checklist of key areas to observe can enhance your assessment and ensure nothing slips through the cracks.
Review compliance with regulations
Ensuring that suppliers comply with applicable regulations is essential for mitigating legal risks. This task involves checking their adherence to industry standards and local laws. What are the specific regulations relevant to your supplier? This can vary greatly depending on the industry. Be aware of possible challenges, such as ambiguous compliance documentation. Staying updated on regulatory changes and having consultation resources like legal advisors can be beneficial.
1
Environmental regulations
2
Labor laws
3
Health and safety regulations
4
Financial reporting compliance
5
ISO certifications
Collect information on supplier's supply chain
Understanding the supplier's supply chain is vital for identifying any potential bottlenecks or risks associated with sourcing. This task requires you to gather information about their sourcing locations, key suppliers, and logistics. What key aspects of their supply chain directly impact your organization? Consider risks like geopolitical factors. Be prepared for challenges such as incomplete or complex supply chain information. Mapping the supply chain can help visualize dependencies and risks more clearly.
1
Sourcing locations
2
Logistics partners
3
Supplier relationships
4
Geopolitical factors
5
Market volatility
Approval: Risk Assessment
Will be submitted for approval:
Collect supplier information
Will be submitted
Evaluate supplier risk profile
Will be submitted
Verify supplier documentation
Will be submitted
Assess supplier financial stability
Will be submitted
Check supplier references
Will be submitted
Conduct site visit
Will be submitted
Review compliance with regulations
Will be submitted
Collect information on supplier's supply chain
Will be submitted
Compile supplier diligence report
The supplier diligence report is a consolidation of everything we've learned during the diligence process—it’s our chance to present findings succinctly. What key findings should be highlighted? Use this report to offer actionable insights to stakeholders. Challenges may arise while distilling complex information into a concise format. Utilizing templates and examples can guide clarity and consistency. A thorough report sets the tone for informed decision-making, so take it seriously!
Present findings to stakeholders
Presenting the findings is your opportunity to showcase your hard work. This task involves preparing for a meeting and creating insightful presentations of the supplier's profile. How can we communicate our findings most effectively? Tailor your message to your audience and anticipate questions they may have. Be ready for challenges like managing nerves or technical difficulties. Practice your presentation and have backup plans in place for a smooth delivery. A well-structured presentation can drive decisive action!
