Empower Your Sales Due Diligence for Procurement Process with airSlate SignNow

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welcome to the global procurement training program today let's talk about due diligence in procurement due diligence refers to the steps taken by who to find and verify relevant information on a supplier or potential supplier and to reach a clear understanding of its profile who has to check to whom it awards contracts and money for the implementation of its programs at the end of this video you will understand why conduct due diligence with who suppliers or future suppliers how to conduct due diligence how to check a future suppliers records and capacity to deliver the resources available to you to conduct due diligence conducting due diligence mainly has two objectives first ensuring that a future supplier has impeccable records for example we do not want who's reputation or the trust of its member states and donors to be damaged by associating who's name with a supplier which has a history of criminal lawsuits the second objective is to verify that a future supplier has sufficient capacity to deliver in line with our standards and expectations due diligence must always be conducted before awarding a contract now let us understand how we can effectively conduct due diligence before working with a new supplier the responsible or procurement officer must gather information and documents such as the self-declaration mandatory above 50 000 us dollars or financial statements the responsible or procurement officer will also obtain information from the united nations global marketplace the bidder or future suppliers website and other relevant websites such as professional associations the gsm if the suppliers account already exists in who other clients of the bidder or future supplier before working with a supplier a responsible or procurement officer is expected to check their records first of all they must make sure that the supplier actually exists and that it is not a supplier created to defraud who then the responsible or procurement officer carefully review the documents provided by the future supplier to detect lawsuits or any type of behavior unacceptable to wh o such as for example terrorist related offences child labour fraud or any other type of illegal activities as the self-declaration is by definition completed by the supplier it is important to cross-check information from the united nations global marketplace lists lists present all potential matches with the consolidated un security council sanctions list world bank's listing of ineligible firms and individuals and lists of sanctioned or suspended vendors maintained by un organizations in addition the responsible or procurement officer must check if the recommended supplier is on the donor's sanctioned list for ec funded contracts for example last but not least the responsible or procurement officer is encouraged to consult the supplier company's website or professional network websites to detect further potential issues such as their association with arms and or tobacco industries now let us turn to the future of our project and check if the potential supplier has the capacity to deliver what we need first of all by verifying if they have enough cash flow to continue operating over the full duration of the project this is something that can be checked from the financial statements with the support of a finance officer then do they have enough qualified workforce to cover our needs the responsible or procurement officer can check the cvs provided in the technical proposal as well as professional certifications for example finally it is good practice to investigate past performance experience shows that a lot can be learned from a direct discussion with offices supervising previous jobs they are listed in the references section of the proposals all information gathered and received must be treated in confidentiality exercising discretion in all matters of official business and shall not be divulged without authorization from legal departments remember due diligence is a key element to mitigate the risk of fraud due diligence must always be conducted before awarding a contract including when the supplier has worked with who in the past regardless of the amount funding or type of contract it is strictly forbidden to engage with a sanctioned entity the responsible and procurement officers are encouraged to follow the steps described above but also to use their common sense resources are available to help conduct due diligence thank you for watching this video see you soon