Maintain good supplier management through e-procurement

Proper supplier management will be required from 2023 under new regulations issued by the Financial Market Commission (FMC). The new regulation will oblige supervised entities to comply with environmental, social and governance (ESG) criteria. To this end, they will have to report on these criteria in their annual reports. 

The regulation will apply to banks, insurance companies, issuers of publicly offered securities, general fund managers and stock exchanges. Among the various objectives that these institutions will have to comply with, it includes the obligation to verify the correct evaluation and management of suppliers.

Supplier management at wherEX

To this end, wherEX e-procurement technology can be a key partner, wherEX e-procurement technology can be a key ally for this.. The platform automatically generates reports that indicate the number, location and behaviour of the suppliers an organisation manages. In addition, wherEX can manage a supplier payment term report, in periods of 30 days, 31 to 60 days, or more than 60 days.

In the interface of wherEX interface, suppliers can be evaluated on the basis of their delivery times. They can also be rated on the quality of their products or services through a scoring system. Similarly, platform users can easily review all certifications attesting to suppliers' technical quality standards and other competitive advantages. It is also possible to review the performance of their obligations, whether fines or labour arrears.

Through an "SME label and local label organisations can detect those suppliers that are emerging enterprises or belong to their own communities. In this way, the companies or entities that tender their products through the platform generate a contribution to the economic ecosystem of the area in which they operate. It is worth noting that 51% of the suppliers available on wherEX are SMEs.

In Chile, more than 150 large companies rely on wherEX and generate their tenders via this B2B trade portal. Transparency, traceability and free competition are guaranteed at the heart of every transaction. The platform aims to build a free and virtuous market, avoiding exploitative relationships and trade monopolies through technology.