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What does an eco system comprise of for a company trying to have smooth operations during its business? In its due course of business, companies have to deal with different entities like employees, customers, shareholders, creditors, dealors, distributors, etc. while some entities have vested interested in the company’s business success, others are the entites with which companies need to partner with to ensure that success. Entities like distributors and vendors are the ones which associate with the partnering company’s brand and thus carries the responsibility of keeping up with the name. This calls for a well thought decision pertaining to selecting of vendors. Selection of the right vendors needs the intervention of due diligence process. Vendor due diligence is a tool that would save the company’s interests getting harmed by frauds like siphoning of company’s stock, misrepresentation, product diversion, employee thefts, executive frauds, etc. with an appropriate vendor due diligence procedure in place, the vendor in question can be validated as far as ethical practices, credit worthiness, legal compliances are concerned. Due diligence goes further by looking into the authenticity of the entity by verifying the documentation and paperwork both pertaining to the vendor and its business’s genuineness and to the ones related to the deal. Even the prospective vendor’s capabilities and expertise can be verified and the resources validated to be appropriate if the company would like to. Political affiliations and various sanctions associated with the vendor’s case are also looked into to get more clarity on the vendor’s background. In addition, vendor due diligence has the provision for screening the vendor for compliance to varied national and global regulations like UK Bribery act, Indian Prevention of Money Laundering Acts. Awareness of a vendor's compliance history can prove crucial as even one red flag in the entity's compliance history can be enough to call off the deal. An all-round check into the past and present antecedents and other facets of the background helps the organization in ensuring the vendor fits by the ideals held by the organization. Furthermore, the vendor can also be ascertained as an entity which furthers in the interest of the company in the best possible way without compromising on anything held dear by the organization. Shortlisting prospective vendors is one thing. But with a proper vendor due diligence, it becomes essentially easy for the organization to ascertain which one of those would be the best bet for the company. Naman is associated with a leading background screening company that specializes in Vendor Due Diligence
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Vendor due diligence, Vendor background check, Vendor background screening, Business partner due diligence, business due diligence,
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