Compliance is a much debated theme within companies. Organizations are increasingly seeking transparency regarding their processes, internally or externally, and their negotiations. That’s where the management of business partnerships or more specifically the management of partnership risks comes into place.

Factors like the increase of the outsourcing of activities, new regulations and legal obligations (like SPED, Anti-corruption law and others) are exposing more and more the risks inherent to the relationship in the productive chain. This because it is not enough to guarantee compliance within the organization, it is also necessary to guarantee, that the partners follow a set of rules for the integrity of the negotiations. Imagine a retail commerce whose work force supplier uses irregular collaborators for the confection of its products. Although it is an outsourcing process for the company, the responsibility by omission lies on the brand. In that sense it is fundamental to guarantee that the suppliers follow all labor laws, besides other laws and regulations. After all, no one wants to take risks regarding the brands reputation.

The companies that ignore the importance of this stage are many. A recent study about “The risk of outsourcing”, conducted by Thomson Reuters, interviewed about 1.132 companies in nine countries and revealed that only 55% of the Brazilian companies searched do risk analyses (due diligence) of their subcontractors. This data reinforces that the lack of knowledge regarding the reputation of their suppliers (corruption practices, use of irregular labor, etc.) is high, which may result in legal punishment for the contracting companies, including.

In this scenario, where the companies are more and more dependent on their suppliers, the challenge is to implement efficient risk management – since the sanitation of the registration data of the suppliers until the evaluation of the reputation of the company and its executives. Aspects such as the juridical habilitation, verification of physical and labor regularities, technical and operational qualification and the practice of sustainability should be key points in the management of suppliers. It is necessary to monitor these aspects constantly and not only when closing an agreement.

Once the processes are define, it is time to carry out an internal alignment to deal with the pressure in between the necessity to attend the service levels (internal, such as deadline for the realization of deadline of a purchasing process) and the execution of the norms established in the moment of supplier homologation.

Supplier homologation is extremely important to help guarantee the quality of partner’s services and products. Many companies count on a single area dedicate solely to this matter, which search for new forms of development, implementation and handling of automatized tools to verify complete supplier documents. The automate of this process brings benefits such as the standardization and gathering of information in a single data base, integration of other systems and the reduction of the time invested in the recruitment and management of the supplier. In fact, it is worth mentioning the main advantage of operational process automation: the buyer team may focus in strategic activities and less processual, actions that do in fact bring value to the organization.

In sum, paying attention to the supplier is vital. If on one hand, the risks cannot be completely extinct, on the other hand, knowing how to administrate them using the right tools makes all the difference. In other words, an efficient management of partners is fundamental to the success of the purchasing sector of your company, and for the success of the organization. Automate the operational processes and change your teams focus to what really matters: the core business of the organization. At last, pay attention to your suppliers, because they are an extension of your brand.