With globalization and a complex supply chain environment, supplier data is becoming increasingly important for business transactions. 

Adhering to ethical, legal, managerial, or operational standards while meeting business requirements is the need of the hour!

Supplier Data Compliance

Now is the high time for organizations to ask the basic questions:

  • Is the vendor’s or supplier’s Tax ID (GST/VAT) active?
  • Has the supplier filed their tax returns (ITR)?
  • Whether the supplier is blacklisted?
  • Is the supplier’s company active?
  • Whether the vendor is registered as an MSME?
  • Are there any ongoing legal litigations against the supplier?
  • Under which category is his company registered?
  • Whether all the licenses like Import-Export, etc valid?
  • What type of company is it – Private, Public, or Proprietorship?

Verifying thousands of suppliers’ data manually and accurately is almost impossible. Besides, if you don’t have a digital way of managing policies, approvals, and processes, you will enter the chaos of mismanagement and non-compliance with supplier data!

Despite this, some companies go beyond conventional methods to adopt supplier active datacompliance methodologies. This is because, apart from the statutory regulations, there are also implications for business. If the compliances are not set right, it can open up to discrepancies, lack of agility, and fraudulent practices.

Cost of Non-Compliance

Supplier data non-compliance is associated with many risks like Statutory, Transactional, Legal, and Brand Reputation Risks. 

On top of that comes a list of laws that impose strict regulations and severe consequences for non-compliance. Any breach of these laws can cost companies nearly five times more than proactive compliance measures. 

Some of these consequences are:

  • Penalty from Government
  • Loss of Revenue
  • Fraudulent Activities
  • Financial Overheads
  • Business Risk

To ensure long-lasting success and a competitive edge, businesses must keep a check on regulatory and statutory norms periodically. Failing to do so can result in significant losses, such as supply chain disruptions, legal and regulatory penalties, and reputational damage.

Best Approach and Practices in India

While companies often miss out on these, there comes a comprehensive list of checks and compliances that must be followed regularly. 

1. GST Quarterly
2. CIN Yearly
3. PAN Yearly
4. MSME Yearly
5. FSSAI Yearly
6. TDS206 On-Demand
7. Bank Account On-Demand

NimbleS2P to the rescue!

With NimbleS2P, you can validate your supplier’s data in a few hours with its robust framework, digital workflows, and real-time verifications and validations.

Mid-to-large enterprises with an extensive supplier base have implemented NimbleS2P and secured their data like never before!

What are you waiting for?

Click here to book a demo.

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