Zip Launches Supplier Risk Management Solution for Global Organizations
Zip has added a solution for supplier risk management to its procurement orchestration platform.
The new Zip for Risk Orchestration enables global organizations to streamline supplier risk assessments, financial verification and regulatory compliance to mitigate risks related to fraud, security breaches and enforcement actions, the company said in a Tuesday (April 1) press release.
“Just as we transformed procurement orchestration, we’re now helping businesses proactively manage regulatory and operational risks worldwide,” Zip Co-founder and CEO Rujul Zaparde said in the release.
Zip for Risk Orchestration features vendor due diligence with automated bank account verification and tax ID validation; a centralized risk depository that includes compliance data, contracts and risk scores; and automated approval workflows to unify risk management across procurement, finance, legal and IT, according to the release.
The solution also provides risk scoring and tiering that prioritizes oversight based on industry, location and regulatory exposure; scheduled risk reviews that ensure compliance with evolving regulations; and vendor auditing and reporting for meeting regulatory requirements, per the release.
Zip for Risk Orchestration is designed to help businesses meet the challenge of managing supplier relationships at a time when regulations worldwide are changing, the release said.
“The challenge has never been more urgent; companies now have more suppliers than employees, and 98% of global organizations have a relationship with at least one third party that has been breached — creating a perfect storm of financial, security and compliance threats,” the release said.
Supplier risk and know your business (KYB) are becoming increasingly critical issues, as businesses must know who they’re buying from, who their suppliers are buying from and whether anyone along that supply chain is a regulatory nightmare waiting to happen, PYMNTS reported in February.
Newly imposed tariffs are also causing seismic shifts in global trade that require chief financial officers to take a proactive, strategic approach to risk management.
When announcing in October that it secured $190 million in Series D funding, Zip said procurement is under the microscope because companies face increasing pressure to optimize spending and manage risk.
“Zip has already proven that we can fix that, saving our customers billions of dollars and thousands of hours of time — and our new round of funding will allow us to continue to revolutionize business spending,” Zaparde said at the time in a press release.
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