BSI, the business standards company, has launched PAS 7000, a universally applicable supply chain information standard for suppliers and buyers operational at organisations of all sizes around the globe.
PAS 7000 Supply Chain Risk Management: Supplier Pre-Qualification helps answer three key questions relating to any organisation’s supply chain partners: ‘Who are they?’, ‘Where are they?’ and ‘Can they be relied upon?’
The standard exhibits the collective expertise of 240 professionals drawn from global industry associations and organisations* and addresses product, process and behavioural criteria for supplier pre-qualification.
PAS 7000 has been created in response to industry demand, with three quarters of executives considering supply chain risk management important or very important1. As supply chains increasingly span continents, and brands become ever more exposed due to the demand for increased transparency, so the challenge for procurement teams to assess the suitability of suppliers increases. 63% of EMEA companies have experienced disruption to their value chain due to unpredictable events beyond their control in the last 12 months at an average cost of £449,525 per incident per company2.
PAS 7000 brings transparency and cost savings to the procurement of supply chains
PAS 7000 provides companies with a uniform set of common information requirements that reduces duplication of effort in completing tender forms and aids procurement in bringing consistency to the supplier base. It establishes a model of governance, risk and compliance information for buyers to pre-qualify suppliers and confirm their intention and ability to adhere to key compliance requirements. In turn, this helps organisations make an informed decision about whether or not to engage with a potential supply chain partner.
Howard Kerr, CEO at BSI, said: “Today’s consumers and employees demand integrity from the organisations with which they’re dealing. Acting with integrity requires confidence in all those involved in delivering a service. Anything else risks brand reputation. The benefit of this new standard is that it helps brands to align their supply chain with their corporate values by adopting an internationally defined framework of good practice for supplier pre-qualification.”
Major benefits of PAS 7000
• Structured and presented to be equally accessible for both suppliers and buyers
• Based on international consensus developed by procurement and supply chain professionals drawn from across the EU, the US and the APAC region
• Includes a wide range of potentially relevant topic modules such as capacity and capabilities, environmental management, employment policies, business continuity, traceability and data protection to name but a few
• The modular approach to information required permits the building of respective modules into a customised matrix supported by a common set of application principles or rules
• Provides a degree of flexibility for tailoring the information to particular organisational needs while at the same time retaining a robust and repeatable approach
• Helps mitigate risks and reputational damage
Kerr added: “This new information model approach involves a concept shift away from that of ‘providing questions that are to be asked by buyers in order to solicit answers from suppliers’ to one where there is ‘a generally accepted information model that’s provided by suppliers and that’s acquired and used by buyers as required’. It’s a fundamental change that will hopefully increase transparency and trust in the supply chain, as well as saving time and effort for both suppliers and buyers in the future.”
For further information (and to download the PAS 7000 standard free of charge) visit: http://www.bsigroup.com/PAS7000
1‘Don’t play it safe when it comes to Supply Chain Risk Management’ (Accenture Global Operations Megatrends Study 2015)
2Dynamic Markets: Managing the Value Chain in Turbulent Times (Oracle, March 2013)
*Organisations involved in the development of PAS 7000 include: Achilles Group Limited, Altius Vendor Assessment Limited, Astra Zeneca, Brother Industries Ltd, Builder’s Profile (UK) Ltd, Capita plc, Celgene Corporation, Chartered Institute of Purchasing and Supply, Dainippon Screen MFG Co Ltd, Defence Science and Technology Laboratory, East Riding of Yorkshire Council, Japan Audit and Certification Organisation for Environment and Quality, Japan Quality Assurance Organisation, London Underground Limited, Metcash Limited, Onward Kashiyama Co Ltd, Osaka Izumi Co-operative Society, PICS Auditing, Sanitarium Health and Well-Being, Sompo Japan Nipponkoa Risk Management Inc, Supply Chain Council – Hong Kong, Toyota Tsusho Corporation and the Vendigital Group