As the global economy continues to expand, many retailers scour the world to find companies that offer the best products and services at the lowest cost. Many of these companies are newly formed and located in remote areas of the world which are recently developing and have little regulation. Frequently, information about these companies and their primary owners is difficult to obtain.
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 globally have enacted laws that require companies to know who they are doing business with and to ensure they are conducting business ethically.
Retailers and other businesses are required to comply with laws such as the federally mandated U.S. Patriot Act, Foreign Corrupt Practices Act (“FCPA”) and the newly enforced California Transparency in Supply Chain Act of 2010 (SB 657).
Managing vendors in multiple countries as well as staying knowledgeable about the myriad of ever-changing global watch lists and compliance regulations is nearly impossible. 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 even unknowingly, conduct business with vendors that are listed on any one of these watch lists.
Learn how the GRMS Vendor Screening Program helps many of the nation’s top retailers mitigate these issues on a global basis at no cost to your company.