As the global economy continues to expand, many U.S. based companies are using off-shore manufacturing facilities to produce, assemble and ship their products to distributors and customers around the world. 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.
Manufacturers and other businesses are required to comply with laws such as the federally mandated USA Patriot Act, Foreign Corrupt Practices Act (FCPA), Conflict Mineral Law, U.S. Bioterrorism Act of 2002 and the California Transparency in Supply Chain Act of 2010 (SB 657).
Managing suppliers 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 suppliers that are listed on any one of these watch lists.
Learn how the GRMS Supplier Screening Program helps many of the nation’s top manufacturers mitigate these issues on a global basis at no cost to your company.