Alex Minett, Head of Products and Markets at CHAS, discusses some key considerations for managing contractor risk in 2023 and outlines how companies can streamline their approach.
Early identification, assessment and mitigation of supply chain risks can avoid serious consequences. Issues such as health and safety incidents, criminal activity and even global pandemics can not only have a devastating impact on human life but can also conspire to generate significant supply chain disruption and have a knock-on effect on finances and reputation.
Implementing processes to streamline contractor management can make it easier to guard against these risks. Effective contractor management can also accelerate business productivity and efficiency and ensure businesses can better adapt to changes and future demands.
However, with countless variables and so much at stake, knowing where to begin is no easy task.
Key Considerations for 2023
Compliance with health and safety is non-negotiable and rightfully remains at the forefront of supply chain integrity. But with businesses accountable for the compliance of their supply chains across a growing number of issues, it’s necessary to keep abreast of changes in legislation.
Mandates arising from The UK Procurement Bill, The Building Act 2022 and The Environment Act 2021 are likely to come into force before too long, with the latter looking for increased assurances around biodiversity, waste recycling, and water and air pollution.
Meanwhile, the EU is setting its own goals to transition to a sustainable economy, including obligations for all member states to carry out due diligence processes along their global supply chains. The aim is to streamline early identification of actual and potential adverse impacts on environmental and human rights issues. This has already begun in Germany with the German Supply Chain Due Diligence Act (GSCA) coming into force at the start of 2023.
Increasing Focus on Materials Suppliers
The safety and quality of materials have hit the headlines in recent years, and materials suppliers must be ready to offer more transparency. As part of overall supply chain management, treating the credentials of materials suppliers the same as any other contractor in the supply chain is the only way to ensure the risk of non-compliance, or worse, is mitigated.
With these factors in mind, it’s clear that in 2023 turning a blind eye to what is going on in supply chains is not an option. Businesses that haven’t done so already must prioritise putting contractor management processes in place and strengthen their supply chain visibility.
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Barriers to Effective Contractor Management
However, contractor management can be notoriously complex, particularly when dealing with a growing number of suppliers. Keeping on top of administration, communication, and compliance is time-consuming which, coupled with a lack of specialist internal expertise, can make it almost impossible for companies to carry out effective contractor management independently.
The fear of ‘getting it wrong’ is a real concern for businesses juggling the demands of a convoluted supply chain and an ever-expanding list of risks and legislation.
How Can Free Supply Chain Risk Management Services Help?
For companies looking to outsource the challenge of finding responsible contractors, and navigating the technicalities of supplier and contractor verification, enlisting the help of a supply chain risk management service could be the answer.
For example, businesses can get support on their journey towards supply chain resilience via the free CHAS Client portal. The portal offers access to a database of accredited contractors and enables clients to search for organisations via trade, qualification level and location. The free portal also includes a dashboard that gives companies complete visibility of their projects, the subcontractors in their supply chain network, and their compliance levels enabling them to streamline their contractor management processes.
Clients can also use the portal to search for contractors qualified to specific standards, such as the CHAS Elite standard. CHAS Elite incorporates the Common Assessment Standard, a qualification that assesses businesses across 13 elements, including issues such as environmental performance, CSR and Modern Slavery. Clients looking to raise levels of compliance in their supply chains can work with CHAS to set compliance targets with CHAS then helping contractors to work towards these standards.
CHAS Clients can also use the portal to find responsible materials suppliers who have been through the CHAS Verified Supplier assessment.
What’s more, CHAS will soon be expanding these capabilities globally, following the announcement in January 2023 that CHAS has become part of the world’s premier supply chain risk management expert, Veriforce. The combined company creates a global platform of technology and services, empowering over 3,200 leading companies in over 130 countries with over 80,000 contractors, and millions of individual workers to drive compliance practices throughout their supply chain. The vision is to offer a ‘one-stop’ supply chain risk management platform/solution in multiple languages.
Conclusion
Preparing for increased regulatory accountability is a daunting prospect, but the good news for businesses looking for help with streamlining their contractor management is that they don’t have to do it alone. There is plenty of expert – and free – support available, allowing businesses to take a fully consolidated view of their supply chain risk profiles and safeguard against any future disruption.
A non-compliant supply chain is a vulnerable one, but with careful management and increased visibility, businesses are likely to reap the benefits of higher financial returns, increased efficiencies and unblemished reputations.
Contact CHAS today to learn more about how we can support your organisation in building healthy supply chains and a more resilient business, visit www.chas.co.uk or call 0345 521 9111.
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