Why Vendor Assessment?
Now a days, It become more hectic to run business, there are many headaches that may keep you up at night. Managing suppliers is a one of major issue in industry. Between regulatory requirements and profitability concerns, having the right vendor assessment solution in place is critical to the long-term success of your business.
In general, a business cannot efficiently produce both the raw materials it needs and the final products it sells to customers. To run a more profitable enterprise, a business should secure materials from others—aka suppliers or vendors. Yet before your SMB contracts with a supplier, it will need to conduct some research.
Supplier verification, also known as Vendor Assessment/Vendor Validation, is the process of confirming that a supplier your company wishes to contract with is both legitimate and reliable. If your business is subject to regulatory requirements or other standards, you will need to verify that the suppliers you work with abide by these rules as well.
Is Vendor Assessment Important For Your Business?
Vendor Assessment saves a lots of valuable time to Business. Moreover it protect company from:
- Fraudulent vendors
- Unpleasant surprises when existing venders go out of business
- Vendors that are unable to keep up with your level of demand
- Vendors that do not comply with safety standards or other regulatory requirements
Vendor Assessment Checklist?
During vendor assessment we verify critical factors to ensure sustainability of Business
1).Company Legal Name and Address.
2).Ownership Structure.
3).Article of Incorporation.
4).Tax Information
5).Business Licenses, Credentials, Permits etc.