browz
APAC Supply Chain Management

Owen West, MD - APAC

The supply chain increases risk to every organization. That risk can include failure to perform adequately, but can also include reputational risk from bad behaviours with respect to safety, the environment, sustainability and employment conditions.

The supply chain is regularly thought of only in terms of the flow of raw materials or goods that support a businesses’ end product. However, a more comprehensive and practical definition should include all the third-party service providers and contractors that assist an organization in its operations. This definition would include, maintenance, repair and operations contractors. Maintenance workers who fix broken equipment, subcontractors that oversee a facility, and the trucking company that transports materials between facilities are all part of the supply chain that could put your business at risk. How effectively contractors do – or don’t – observe safety protocols and contractual requirements may impact your company’s stakeholder value, brand reputation, compliance, and business continuity.

Globalization has led to a veritable explosion in the number of contractors that both multinational and domestic companies are working with. There are strong economic drivers for businesses that operate in other countries to hire local service providers and workers, but there is also solid domestic demand for contracted suppliers, as firms seek to partner with third parties for specific projects or needs. Many businesses have started to embrace the lean management model, choosing to call in a specialist or repair company as needed rather than have a full-time employee on the payroll, regardless of whether there is work for him or her to do. In sourcing these vendors, procurement managers need to consider the potential risks of hiring contractors. Factors such as the safety practices of a third-party service provider and the risks of relying solely on a single contractor should also be considered.

Global contractor prequalification leader BROWZ (www.browz.com/au), is helping organizations to address these risks. Because procurement managers are not only working to reduce costs in the service and materials supply chains, they must also be proactive and responsible for how their contractors comply with corporate social responsibility and safety standards.

Procurement can extend the safety department’s reach and impact regarding external partners. When actively sourcing vendors and contractors that comply with safety regulations and refusing to source those that don’t, the procurement department can reduce risk and assert greater control over external factors and off-site safety.

Having proven expertise in addressing supply chain risk for the world’s largest organizations since 2001, BROWZ has become an established market leader by delivering comprehensive contractor management solutions to support their clients’ compliance objectives. As a distinguished organization in the APAC region, BROWZ has brought forth an advanced product suite, which arms clients with the ability to identify risks within their supply chain and proactively manage associated risks when hiring third parties.

Prequalification allows for unqualified contractor organizations to be eliminated from the bid process and thus improves the evaluation of bids. To outsource this function can lower cost and be more effective. BROWZ helps organizations screen contractors based on information provided through an online assessment, then proactively monitors compliance throughout the year. Working with the world’s largest global organizations, BROWZ consults, shares industry best practices, and together defines client’s supply chain requirements. BROWZ then creates an online assessment on behalf of their clients. Contractors complete online assessments and submit supporting documents. The team at BROWZ then validates and scores the information, based on their clients’ standards. The final results are displayed online using intuitive icons so the company’s clients know at a glance which members of their supply chain meet their standards.

According to Owen West, BROWZ Managing Director - APAC “From my previous experience as a CPO of two large corporations, I know that the BROWZ process does help to mitigate supply chain risk. Outsourcing to BROWZ provides the fastest path to compliance.”

West points out that in addition to safety requirements, BROWZ can be configured to address additional compliance data points including insurance, risk, environmental health and safety, corporate social responsibility, financial stability, supplier demographics, and diversity status.