With the increasing globalization of the supply chain, Optima have got much experience on cross-regional procurement and managing potential risks. We are committed to establishing a procurement-centric risk management plan and more carefully assessing Tier 1 and Tier 2 suppliers and their respective operations. Here are our evaluation criteria:
● How long have we cooperated with this supplier?
● How have they performed so far in terms of product and service quality and on-time delivery?
● How many contracts do we have with our suppliers?
● Given the changing market conditions, are the previously signed terms still optimal?
● Do we have integrated procurement needs?
● Is the supplier's profile information up-to-date (ie insurance and other certificate details)?
● Does the vendor have a rigorous governance framework to detect and eradicate the reputational risks of its upstream trading partners?
As digital technology is reshaping the way companies collaborate, procurement is evolving from a historical role of cost savings to a key position where today's collaboration between the two parties can be promoted.