Procurement wins in supply chain digitalisation

Original Post Source

The digital age has revolutionised the way society consumes and shares information, and now even the supply chain – one of the last areas of the business to take up digital transformation – is embracing it.
The SCDigest Supply Chain Digitisation Benchmark Survey 2016, revealed a shift in mind-set with about 80% of respondents identifying digitisation as a key focus area.
Rudi Kruger, GM of LexisNexis Risk Solutions, says the key advantages of a digital shift for supply chain include enhanced security, reliability, reduced carbon footprint and cost saving.
“Going digital serves as a means of staying competitive and safe while providing easy access to necessary documentation and procedures,” Kruger says. “This creates immediacy, transparency and ensures that those involved in supply chain are able to gain a cohesive overview.”
An area most deserving of digitisation is risk management in the form of vendor vetting and management during the procurement stage, according to Kruger.
The King Codes for Corporate Governance and legislation like the Public Finance Management Act and the Municipal Finance Management Act stipulate strict codes of conduct, which if not abided by can mean fines, reputational damage or even jail time.
“Procurement vendor vetting and vendor management are designed to limit or eliminate conflicts of interest, shell companies and other incidents of procurement fraud that can land your business in hot water,” says Kruger.
“These steps therefore deserve adequate time, support and tools in order to be effective. In addition, it must be noted that once-off evaluation and screening are not enough to protect your business from unscrupulous activities, which is a why a permanent digital assistant is necessary to help with keeping things above board.”
LexisNexis Risk Governance, Risk and Compliance Solutions offers its ProcureCheck solution for vendor screening, ongoing monitoring and management.

Leave a Reply

Your email address will not be published. Required fields are marked *