Index will allow companies to measure beyond first tier suppliers and determine practices in risk, ethics and sustainability.
May 06, 2014:The Ethisphere Institute, an independent center for research, best practices and thought leadership in corporate ethics and compliance, and the Institute for Supply Management (ISM), a professional association for procurement and supply chain management practitioners and their organizations worldwide, have partnered to develop the Supplier Risk Index, an online resource for organizations to survey the practices among their suppliers and their supplier's suppliers.
The ISM Services business unit has worked closely with Ethisphere to align the Supplier Risk Index with the needs of procurement and supply chain professionals.
"The Supplier Risk Index will enable companies, and specifically our membership organizations, to be more proactive in their approach to supplier due diligence," said ISM Services President, Bill Michels, CPSM, C.P.M., MCIPS. "ISM Services will be able to equip companies with a comprehensive survey of risk, ethics, and sustainability indices, providing unprecedented insight into their supply chains and enable companies to determine a risk profile that can better align supply chain practices with key business strategies."
Capable of surveying an organization's entire supply chain, the Supplier Risk Index identifies risks and grades organizations based on self-reported practices to help companies mitigate key risks and protect their reputations in a cost-effective and measurable way. The data gathered is comparable by the host organization and can be a useful tool for suppliers when shared during new business opportunities.
"As the global market continues to expand, organizations are increasingly putting their reputations in the hands of their suppliers," said Ethisphere CEO, Timothy Erblich. "As a recognized thought leader in the space with 100 years of experience and insight, ISM is the ideal partner to develop a resource to further support supply chain practitioners in aligning their suppliers with their business practices.
"Shire Pharmaceuticals is committed to best practices in supply chain and adding further clarity around the practices of our suppliers below the first tier," said Shire Pharmaceuticals' VP Global Procurement, Bill Dempsey. "We applaud an initiative like the Supplier Risk Index.
"As a global leader in real estate services operating in more than 75 countries, we engage thousands of vendors around the globe on behalf of our clients, who count on us to take a leadership role analyzing our partner and supplier relationships," said Jones Lang LaSalle's Global General Counsel, Mark Ohringer. "We are proud to be an early adopter of the Supplier Risk Index, which we believe is reducing enterprise risk and differentiating us from our competition."