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CHEMICAL SUPPLY CHAIN
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Case Study: How clean is your Supply and Value chain? The rising relevance of 3rd party customer and vendor compliance screenings in the global chemical Value Chain
Why are 3rd party screening becoming more relevant and more people are aware of them? Where as in previous years companies just were in the position to say that they went into a collaboration with e.g. a bad supplier (drug trafficking, false labor), this is not as easy nowadays. A supply or value chain, in particular the chemical supply chain, doesnt need to be 100% clean, but it must be visible for all outsiders, that the company is taking satisfactory steps to achieve it. This, and the damage caused on the supply chain due to exogenous shocks, e.g. the war in Ukraine, post-COVID, and financial crisis led to more and more important screening of customers and vendors that a company would like to work with.
Guy Thompson
Head of Global Credit Risk at Sun Chemical
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