Insight into the risks when selecting new suppliers: 5 benefits

Henrica Westhoeve
October 6th 2023 - Reading time 7 minutes

Selecting new suppliers is a crucial step for any business, and it's important to minimize the risks associated with it as much as possible. In this blog, we delve deeper into the importance of understanding the risks when choosing new suppliers and the benefits it brings. We discuss five key aspects, from legislation to data management, that can assist companies in selecting a new supplier and minimizing risks.

Understanding your contractors and their subcontractors in the bidding project

A good understanding of the contractors and subcontractors involved in your bidding project can help identify and address potential risks in the project. It is essential to not only consider price and quality but also their safety policies, certifications, and experience. By examining these aspects, you can make an informed decision about which contractor is suitable for your project and which risks need to be minimized. Remember that a strong collaboration with contractors and subcontractors is crucial for the successful execution of the bidding project.

See: Gain control over the risks in your supply chain with D&B Supplier Risk Manager

Pre-qualification in a tender or procurement process

Include information about financial stability and creditworthiness in the pre-qualification process of your procurement project. This can help prevent a high-risk party from being awarded the project.

It is essential to ensure that the party ultimately awarded the project is financially stable and has good creditworthiness. This reduces the risk of potential delays and other issues during the project. By incorporating these criteria into the pre-qualification process of your procurement project, you can ensure that only the most suitable parties are invited to submit bids. Adding this information can contribute to the successful completion of the project within the specified time and budget, while minimizing the risk of financial problems.

Clean data provides benefits

Het hebben van een schone database is van groot belang voor bedrijven. Onvolledige of verouderde gegevens kunnen leiden tot inefficiëntie en zelfs fouten in bedrijfsprocessen. Dataopschoning kan hierbij helpen, net als het gebruik van externe data en dataverrijking. D&B data wordt dagelijks gecontroleerd en bijgewerkt, wat betekent dat je altijd toegang hebt tot de meest recente en volledige informatie. Hierdoor kun je deze gegevens veilig en zonder zorgen koppelen aan je eigen systemen, zoals CRM of ERP. Dit bespaart niet alleen tijd en moeite, maar zorgt er ook voor dat je bedrijfsprocessen soepel verlopen en je klanten de beste service kunnen bieden.

Economies of scale in corporate linkages

Research the coporate linkages from your supplier.
Do you know if your supplier has subsidiaries? Uncovering corporate linkages can provide insight into the directors, shareholders, and other financial aspects of these companies. Then, check if they appear on sanction and PEP (Politically Exposed Person) lists.

Examining the corporate linkages of your supplier can help you gain a better understanding of the company you are doing business with. It can help you understand who is at the top of the organization, who the key shareholders are, and what the financial status of the company is. This can ultimately lead to greater insight into the risks associated with working with this supplier.

Een ander belangrijk aspect van het onderzoeken van corporate linkages is het controleren van de sanctie- en PEP-lijsten. Hiermee kun je zien of het bedrijf in kwestie wordt geassocieerd met personen of organisaties die op deze lijsten voorkomen. Als dat het geval is, kan dit een signaal zijn dat er mogelijk grote risico’s verbonden zijn aan het werken met deze leverancier.

See: Manage risks within the current legal and regulatory framework with indueD

In summary, investigating the corporate linkages of your supplier is a crucial step in assessing the risks of working with this party. It can help you gain a deeper understanding of the company and the individuals involved, ultimately leading to better decisions when choosing a supplier.

A complete supplier view

By enriching your data with external information (such as corporate structures), you gain more insights into your supplier database and may even discover new opportunities to optimize your procurement process. For instance, through this enrichment, you may find that multiple suppliers are related to each other, allowing you to potentially negotiate better agreements or engage in bulk purchasing. Additionally, data enrichment can also assist in mapping the risks within your supplier base, such as in the area of ESG.

By combining this information with other relevant data, such as the quality of the products or services provided, you can obtain a more holistic view of your supplier base. This will assist in making strategic decisions and enhancing the overall performance of your company.

The selecteren van nieuwe leveranciers is geen lichte taak, maar het begrijpen van de risico’s en het benutten van de voordelen kan een aanzienlijke impact hebben op het succes van een bedrijf. Van het waarborgen van financiële stabiliteit tot het onderzoeken van corporate linkages, deze vijf voordelen bieden waardevolle inzichten om risico’s te beheersen en een betrouwbare supply chain te creëren. Door deze aanpak te omarmen, kunnen bedrijven niet alleen kosten besparen, maar ook hun operationele efficiëntie verbeteren en de kwaliteit van hun dienstverlening optimaliseren. Het is essentieel om de selectie van leveranciers serieus te nemen en de juiste stappen te nemen om succesvolle partnerschappen te smeden.


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