Manufacturing Vendor Screening Program
As the global economy continues to expand, many U.S. based manufacturers are using off-shore manufacturing facilities to produce, assemble, and ship their products to distributors and customers around the world. Many of these facilities are owned and operated by companies that are newly formed and located in remote areas of the world where information about the companies and their primary owners is difficult to obtain.
A majority of these facilities are located in regions of the world which are recently developing and have little regulation. In most cases, business is transacted with these companies over the telephone and via email.
As a result of these dynamics, the U.S. Federal Government and other governmental agencies on a global basis have enacted laws that require companies to know who they are doing business with and to ensure they are conducting business ethically.
Manufacturers and other businesses are required to comply with laws such as the U.S. Patriot Act, the Foreign Corrupt Practices Act (“FCPA”), Conflict Mineral Law, U.S. Bioterrorism Act of 2002, and the newly enforced California Transparency in Supply Chain Act of 2010 (SB 657).
Managing vendors in multiple countries and staying knowledgeable about the myriad of ever-changing global compliance regulations is difficult, time consuming and expensive for retail companies to conduct internally.
A mistake can be costly since your company is exposed to the risk of substantial fines and damage to your reputation anytime you knowingly, or unknowingly, conduct business with vendors that may be listed on any one of these watch lists or violate any of these laws.
Find out how the GRMS Vendor Screening Program helps many of the nation’s top manufacturers manage these requirements on a global basis at no cost to your company. Contact GRMS for your no obligation online demonstration of our programs.