Complaint methods of taking on new suppliers

1. Procurement Service
Supplier Due Diligence
BY
SAMANTHA COOMBS

2. This document outlines the Due Diligence Procurement service, its
benefits and the process. To mitigate as much risk to the business as
possible it is necessary put a new supplier through the Due Diligence
process during the engagement stage.

3. Process
This service has a number of short but effective steps that can be managed
by the Procurement department. Broadly these steps are as follows:
• Supplier Profile: to understand the size of the organisation, its legal details
and performance at a high level.
• Graydon Report: can be acquired by the Procurement department to assess
the suppliers financial performance in greater detail and highlight any
areas of risk that might be unacceptable.
• Supplier Visit: by the Procurement department to ensure the organisation
is as it says it is.
• Customer Reference’s: can be obtained by the Procurement department to
identify what their clients say about them.

4. Process continued
If Working Links needs to engage with a small supplier or a supplier that has
been identified in some way as a high risk supplier, then a number of other
steps can be taken.
• Letter from their bank: stating that the supplier has a good business plan
and has been trading without default for 3 year or more.
• Close financial disclosure: meaning that every six months the Procurement
department along with the finance department understands the financial
position of the supplier.
• Becoming a reference site: will help small suppliers grow and therefore
mitigate the risk to Working Links.
• There is a large amount of risk in a supply chain such as poor performance,
little value for money or reliability. This service will identify and help
reduce this risk.