Concentric Supplier Risk Management (Determine)
When a supply chain extends across the globe, procurement has to extend the scope of their risk management efforts beyond specific suppliers to include the industry or country that a supplier operates in. Rooting out supplier risk resulting from regulatory non-compliance, child labor law violations or corruption requires proactive monitoring on multiple levels in the supply chain. In order to achieve this expanded view, procurement must move outward in concentric circles; making each supplier the center point, then expanding to include additional relevant sources of risk for further investigation.
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