Vendor compliance management refers to managing all aspects of your company’s and your suppliers’ compliance with statutory, legal, BBBEE and technical requirements.
It ensures both your business and your suppliers are legally compliant, vetted and verified to access industry-relevant trading opportunities and mitigate trading risks. As a buyer and/or supplier, you can then guarantee risk-free trading opportunities.
Is your business compliant?
If your business is looking to become a reliant supplier to other buyers and access trading opportunities such as tenders, having the right legal documentation and showing compliance is an essential requirement for vendor compliance.
Documentation includes CIPC registration documents, bank account confirmation, valid tax clearance certificate and proof of identity, which ensures your business is legit and open for trading with potential buyers.
Furthermore, although not mandatory in South Africa, a B-BBEE certificate or Affidavit can also be taken into consideration to broaden the trading scope and access tenders.
Being legally compliant means that your business qualifies to become a vendor and respond to requests from buyers. Your business can accept and send quotes easily, trading with confidence.
You are considered a low trade risk supplier, which improves your chances of securing more business. As your business grows, you can enhance your supplier ranking or Business Maturity Index Score (BMIS), differentiating your company from other competitors.
VCM offers a holistic approach to vendor compliance managing by assisting both companies and suppliers to promote compliance and furthermore aims to provide SMMEs and established companies with equal and greater opportunities. Here is a recap of the three main areas of VCM:
Are your suppliers compliant?
Vendor compliance management is vital in mitigating trading risk with suppliers. It ensures your supplier’s legal company documents are physically up-to-date, verified and vetted. By only trading with compliant suppliers, your business avoids fraudulent transactions.
It also means your business has access to a comprehensive risk-free, authenticated supplier database, with all the information you need about your suppliers. Having a centralised supplier portal increases data transparency and accuracy and eliminates the tedious and manual process of traditional vendor applications.
Whether you are a company or vendor or both, vendor compliance management can assist in improving your trading prospect and supplier status.
VCM is a vendor management platform designed to provide complete visibility on all suppliers’ levels of compliance with statutory, legal, BBBEE and technical requirements.
Contact XGRC Software to find out more about the VCM vendor compliance management solution. Visit www.vendorcompliance.co.za for more information.