The more companies rely on third-parties to deliver critical services, the more imperative it is to track their viability and health. Among the thousands of third parties a company may use, the risk of failure is very real. Hiperos 3PM™ can track and assess third party “health” and monitor it over the lifecycle of the relationship.
Recently, the frequency of bankruptcies increased drastically due to the global financial climate. As the economy has improved, bankruptcies have fallen, but with so many third parties enmeshed in a company’s business it is important to continuously monitor these areas:
- Financial position – the financial health directly affects the ability of a third party to perform their duties
- Legal actions/liens – the outcome of legal actions can have a profound impact on both the financial performance of an organization as well as its ability to deliver a good or service (e.g.breach of a patent) and liens are a good indicator of a third party’s ability to pay its bills
- Recent news – the news wires are excellent sources of information about a supplier. For example, the reduction of workforce, the award of a major contract, or the investigation by a regulatory body are all predictive indicators.