The growing need for specialty chemicals in India and the world post the industrial revolution has played an important role in building the specialty chemical space. This growing need has also lead to growth in a complex cycle of third parties attached to this segment.
Our chemical industry clients uses our comprehensive solutions for vendor empanelment evaluation and ongoing compliance monitoring for their third parties to mitigate the compliance risk and prevents in high litigation fines and encourage Reputation & confidence of its stakeholders.
CLIENT – A leading Financial services firm
QUERY – Client in oil and gas segment wanted to populate their supplier database of international and domestic suppliers in order to ensure filling the RFI along with collecting KYC, country specific compliance, Quality assurance certificates, HSE Manuals, Product Information, Presence in countries with compliance followed, collating product supplied information, creating product category codes and providing with a compliance check risk report.
This engagement was carried out with the subject entity and more than 3000 international and domestic vendors. These vendors were evaluated and all information was provided to the client in the requested software format with ongoing updation and monitoring.
FINDING – More than 45% of the suppliers were red flagged in either their domestic or international compliance. Over 23% entities defaulted on basic compliance; also 57% had delay in filing compliance. We also found that more than 35% of entities didn’t have any quality management systems, HSE manuals and other necessary compliance in place. Around 13% of the entities had their key management reported in media and were red flagged along with civil and criminal litigation filed against them.
RESULT – Our client wanted to monitor these suppliers on an ongoing basis which was provided by our team with quarterly monitoring of key suppliers to avoid reputation and compliance risk. Also this activity helped increase stakeholder confidence for the entity.