Supplier and Vendor Vetting

Mar 13, 2018

Industry News

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supplier vetting

Vetting is a valuable tool and should apply to all potential suppliers and/or vendors with whom an organisation does business and can easily be outsourced to consulting service providers.

This screening and monitoring process is to ensure that they meet the guidelines of vendor risk management.

Critical areas requiring verification for Vendor Vetting are:

  • Is the vendor qualified to do the job?
  • Does the vendor have the insurance necessary should there be a problem?
  • Does the vendor belong to an industry-specific governing body?

As part of Uphando’s vetting process we perform the following approach (although our services are not limited to the below):

  • Check the legitimacy of the company (registration with CIPC)
  • Verify that the company is VAT registered with SARS
  • Verify the directors of the company
  • Verify all entities the directors are involved in
  • Verify the status of each director and Properties Owned
  • Verify Banking on File
  • Verify Trade on File
  • Verify any Court Record related to the Company
  • Verify any Notorial bond or other Suretyship recorded

Research has proven that stringent internal controls, checks and balances have yielded better results than whistle-blowing.

Where procurement is concerned, companies are advised to deal only with screened and approved vendors as this process is able to identify possible links between vendors and employees and flag possible collusion opportunities.


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2 comments on “Supplier and Vendor Vetting

  1. ergfirnolikz says:

    It?¦s actually a nice and helpful piece of information. I am satisfied that you shared this useful info with us. Please stay us up to date like this. Thank you for sharing.

  2. Dean Crawford says:

    Thank you for the insightful information.
    Please bear with me , I think the relevance below is justified:
    I was recently headhunted back to a company that had been reregistered as a new entity , I previously worked for the original company for almost 3 years and did very well at the company , the reason why I resigned was because of commissions fraud , where my commissions were not being paid in full repeatedly.

    The new owner of the company said there wont be any underhanded salary alterations and perks etc etc……, he kept me there for 6 months and then dismissed me , I took the matter to the CCMA and won the case. The timing that the owner of the company employed me was so that a new restraint of trade would be enforced for another 2 years as the old one had just finished!!!
    As I have been desperately trying to seek employment , one of my old customers contacted me after he found out what had happened and was appalled at what the company had done to me , however that wasn’t the only thing he wanted to talk about. He needed products that I used to sell to him years before , but he told me that his company has now adopted a vendor vetting procedure , so all procurement requirements have to be met and the suppliers must have compliancy on all fronts as
    this is data security specific.
    What he had told me was they ran background checks on the company and the directors of the company I used to work for , it was bad, really bad , multiple criminal records , fraud , judgements and trespassing with an illegal weapon !!!!
    So the customer told me if they had not adopted the Vendor Vetting policy and bought from that company and had an incident , however small , the Data Centre would have done a check on the supplier and my old customer would be liable for damages , not to mention never being able to supply that Data Centre ever again!!
    The loss of revenue would be astronomical not to mention the credibility being put into question.
    So this is an absolute must , and all businesses must do these checks , because you really don’t know who you are dealing with until its in black and white in front of you.

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