Till now, we discussed how supplier management technology can help organizations comply with the demands of conflict mineral rule in a timely and accurate manner. (Click here to access part 1 and part 2 of the series)
Taking it further, let’s now talk about the other 2 ways technology can help:
- Supplier selection
After the qualifying round, the shortlisted suppliers can be evaluated on different parameters or scenarios, like avoiding a supplier from a particular geographic location or those dealing with sub-suppliers from the conflict zone, etc.
All stakeholders should be involved in the supplier selection process to ]ensure transparency and to make the evaluation process more objective. Standardizing the requirements and specifications in the form of a template makes the process more repeatable and effective.
- Supplier survey
As per the rule, a third-party audit is compulsory. In addition, organizations need to ensure that they evaluate supplier performance and compliance (in terms of submission of renewed certificates, etc.) at regular intervals. Supplier performance must be reviewed based on the KPIs defined.
The PWC survey highlights that approximately 47% of the surveyed companies plan to gather information regarding conflict minerals rules from their suppliers through survey. Supplier management technology enables organizations to carry out surveys among their suppliers to gather information for the conflict minerals rule.
Additionally, organizations can ask their direct suppliers to carry out the survey with their sub-suppliers. This ensures that information is collected down the entire supply chain.
The level of transparency demanded by the Act requires organizations to turn to technology for relevant results in less time.
