Structuring and Managing a Controlled Value Chain

Mapping supplier risks and ensuring supply chain traceability have become major challenges for procurement departments. Faced with increasing regulatory requirements, the need to secure supply chains, and rising stakeholder expectations, companies today must build value chains that are more transparent, manageable, and resilient.

Supplier Risk Mapping:
Method and Implementation

This is the first step in the vigilance plan, which we typically break down into five phases:

Risk Mapping
Risk Mitigation and Prevention Measures
Regular Evaluation Procedure
Alert Mechanism
Follow-up on the actions implemented

Working closely with your teams and suppliers, we carry out the following:

Segment your suppliers by category and subcategory by classifying your expenses and determining the criticality of each strategic, technical, or transactional purchase for your business.
A comprehensive assessment that analyzes risks related to the country of origin, the industry, and the organization’s level of exposure. Several sustainability criteria are taken into account: the environment, human rights, labor rights, ethics, and more. Using a detailed analysis framework tailored to each company, the various types of risks are clearly identified and prioritized, which then allows them to be addressed in a differentiated manner.
cross-functional brainstorming workshops so that all of the company’s stakeholders can participate in risk assessment, each contributing their own perspectives and experience, which makes it possible to map out the entire chain of procurement-related issues.
on-site audits and discussions with your key suppliers, to gain a clear understanding of the actual situation on the ground in terms of the resources deployed and the results achieved.

Over the course of the 3- to 4-week process, we combine in-office analysis with facilitated sessions involving the Procurement, Finance, Operations, HR, Legal, Sales, and Supply Chain departments. The result: a customized deliverable that takes into account the interests of all your stakeholders—suppliers, investors, customers, employees, production units, logistics, and more.

+30 000

mapped suppliers

country

75%

suppliers assessed by Ecovadis over a 3-year period

Assess Your Supplier Risks

Supply Chain Traceability:
to Manage Responsible Purchasing

Knowing what our products contain and understanding their environmental and societal impacts has become a major concern: customers, shareholders, employees, and investors are increasingly seeking to ensure that these criteria are taken into account.

For an organization, ensuring the traceability of its goods and services is the best way to address these concerns: through risk mapping, the company identifies potential discrepancies and prioritizes issues; then, using traceability, it qualifies these risks by specifying the origin and production methods of the goods, materials, and substances in question.

It is through traceability that responsible procurement becomes measurable, verifiable, and therefore manageable: the company can anticipate issues such as non-compliance, excessive dependence, supply disruptions, or even ethical and environmental scandals.

Maliro monitors the regulatory landscape regarding the numerous international standards currently in force to ensure the traceability of substances and the geographic origin of products:

REACH for chemical substances,
RoHS for hazardous substances in electronic products,
Border Carbon Adjustment Mechanism for carbon-intensive goods imported into Europe,
ESPR Regulations in Europe,
The Uyghur Act in the United States,
The Supply Chain Act in Germany…

Almost every year, governments enact new legislation to better regulate these practices: in the space of two years, no fewer than six new laws have been enacted by the United States, China, Canada, Europe, and Colombia.

Ensuring the traceability of strategic minerals

At Maliro, we have specialized expertise in the traceability of strategic materials:

Monitoring of generic and sector-specific international standards: IRMA (Initiative for Responsible Mining Assurance), Solar Stewardship Initiative, The Copper Mark for copper, nickel, zinc, and molybdenum, ISO 22095, and the UN Principles on the Traceability of Critical Materials.
Identification of the risks associated with each type of mineral based on international sustainability criteria.
Identification of strategic suppliers.
Improving processes for collecting information from relevant suppliers: sharing reported or verified information.
Development of specific action plans that combine the search for new supply sources, the switch to alternative materials, collaboration with current suppliers, and the implementation of new business models.

By combining risk mapping and traceability, companies have all the tools they need to meet regulatory requirements and build a robust supply chain that satisfies the due diligence criteria under the CS3D.