Nixing The Paper Trail In Supplier Risk Assessment

Getting paid can be a challenge for small suppliers, especially those working with overseas clients. But corporate buyers face challenges due to their suppliers, too, most notably when it comes to regulatory compliance.

A new service by Tradeshift, which already connects global buyers and suppliers on a single digital platform, wants to mitigate risk for the corporate customer.

“Finance and procurement teams have long been plagued by risk due to limited visibility into supplier compliance and external risk factors,” Tradeshift said in its announcement of a new supplier risk management service, revealed Tuesday (Nov. 3). “This limited visibility stems from out-of-date, inaccurate data that buyers have to manually maintain themselves, and constant changes in regulatory compliance requirements.”

[bctt tweet=”Procurement teams have long been plagued by risk due to limited supplier visibility”]

The company’s new service, Tradeshift Risk, automates supplier data aggregation and analysis to ensure the company is verified and checks against the most recent regulations. Suppliers that may not entirely be within regulation are flagged, and buyers are alerted.

In a statement, Tradeshift CEO Christian Lanng said the new tool was developed with the recognition that companies have had to manually review their suppliers one by one.

“The current technology landscape in the supply chain compliance space is siloed, cluttered and poorly executed,” he said. “It is simply not acceptable for modern organizations to waste countless man-hours and old-fashioned paper trails to combat compliance issues.”

Tradeshift Risk assesses suppliers in real-time and helps keep supplier data accurate and up-to-date, the company said. The tool help companies resolve risks and strengthen partnerships with verified suppliers, allowing them to subscribe to those suppliers to get alerts that monitor supplier compliance.

Last month, Tradeshift got a major bump by Microsoft when the company decided to link corporate users of its Dynamics NAV platform into the Tradeshift e-invoicing system. The latest version of Microsoft Dynamics will provide Tradeshift’s digital billing services for free, reports said.

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