The importance of individual and organisational reputation, when conducting business, has come to the foreground recently as South Africa’s banking giants detach themselves from controversial figures and their associated enterprises.
This is according to Ina van der Merwe, Director and CEO of background screening market leader, Managed Integrity Evaluation (MIE), who notes that having a good business reputation is essential for survival in the market place and is one of the most significant assets an organisation can have.
She notes that this brings a previously overlooked factor into the spotlight - the impact a business’s suppliers can have on it, merely by association.
“While business leaders recognise that their suppliers may impact the public’s perception of their companies, few translate this into specific criteria when evaluating potential vendors. When going through a ‘winning vendor’ check list, business leaders consider points like price, turnaround time and contract terms. While these are vital considerations, they should also examine how a potential supplier will reflect on their organisation.”
“For this reason, it is crucial for businesses to ensure that their vendors not only fit within their budget but that they are reputable and that their company documentation is accurate and verified,” she adds.
MIE recently launched a ‘vault’ of verified vendors across various industries and regions in South Africa.
“A web application, Vendor Vault (‘vVault’), enables both public and private South African companies to streamline their procurement process and search through MIE-verified vendors. By utilising vVault, subscribing vendors also avoid the duplication of costs and effort associated with the procurement process.”
“In addition to smoothing out the often complex procurement process and providing a platform to link vendors and enterprises looking for suppliers, vVault also assists in combatting procurement fraud,” van der Merwe explains.
Referring to the PWC ‘Global Economic Crime Survey 2016 (5th South African edition, March 2016), Economic Crime: A South African pandemic, no sector or region is immune’, van der Merwe highlights that procurement fraud - identified as one of the most pervasive economic crimes in South Africa - has improved from 2014 levels of 59% to 41% in 2016.
“This is, however, still extremely high when compared to the global average of 23% and exposes the seriousness of the problem in our country and across business sectors.”
“Having a good reputation can benefit a business in a multitude of ways from consumer loyalty and support to the future value of an organisation in the global marketplace,” she concludes.
For more information on how to access vVault or how to become a vVault vendor, visit www.vendorvault.co.za.