Modern supply chain has become increasingly multilayered in nature. Larger projects, higher resource demands, and specialized skills requirements have made contracting frameworks more collaborative than ever. At least 38% of suppliers in the Avetta network rely on subcontractors for the provision of works and services to their clients. However, it is challenging to know which subcontractors are working on your projects, who are compliant with your requirements and how your prime contractors are managing them.
Subcontractor Risk Profile
With each subsequent tier of subcontractors, operations and associated responsibilities tend to move beyond the visibility scope of hiring organizations. Such circumstances can make it difficult for you to gauge the potential risks arising from your tier 2 and 3 subcontractors, let alone mitigate them.
The following are some of the most common risks posed by subcontractors which continue to challenge supply chain resiliency:
Health and Safety Issues
Increased exposure to safety risks and lack of proper controls can often result in an injury or fatality which can have serious implications for a company.
Workplace Safety Violations
Often companies have little to no insight on the safety standards followed by tier 2 and tier 3 subcontractors.
Liability Risks
Extended network of subcontractors can often be susceptible to several types of risks in the form of health and safety, cybersecurity, and ESG non-compliance, for which the parent organization is often held liable.
Legal and Regulatory Violations
Violations stemming from poor management of subcontractors include conflicting material usage, corruption, inhuman working conditions and data abuse.
Data and Identity Theft
Even companies that manage their own data with the most robust security firewalls may fall victim to hackers if their third-party vendors utilize the information through less secure systems.
Reputational Damage from Unethical Practices
Companies may risk facing costly sanctions or suffer from reputational damage while unknowingly working w ith subcontractors indulging in unethical work practices.
Solution Capabilities
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Prime contractors use the same location and filter-enhanced search as clients do to find subcontractors across the globe
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Get a quick snapshot of all the subcontractors working for a prime contractor
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Drill down into a subcontractor name to view all account and compliance details
Drill down into a subcontractor name to view all account and compliance details
Benefits
The subcontractor doesn’t get turned away from performing the work because they are not in Avetta and can comply prior to working which reduces the admin burden to the client and suppliers can readily see which subcontractors meet the requirements upon connection.
Avetta’s subcontractor management solution exists behind a feature toggle. Turn it on and it’s done. No one-off configurations needed.
View connections, trades, location, and compliance information for all the subcontractors
Primary suppliers can easily discover and connect with new subcontractors to work on your projects
Subcontractors go through the same level of prequalification and compliance requirements as your prime contractors, ensuring consistency
The Value Add
Level up capabilities by discovering and managing subcontractors
Discover new subcontractors
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Select the Clients to assign to the subcontractor. Client requirements are automatically configured once the connection is made
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Centrally manage all subcontractors
Gain complete visibility at the Subcontractor level
View subcontractor information across supply chain
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Track and ensure compliance for every subcontractor
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Centrally manage all subcontractors
Gain Visibility Down to the Subcontractor Level with Avetta Subcontractor Management
Why Avetta?
The Avetta SaaS platform helps clients manage supply chain risk, and their suppliers, to become more qualified for jobs. For the hiring clients in our network, we offer the world’s largest supply chain risk management network to manage supplier safety, sustainability, worker competency and performance. We perform contractor prequalification and worker competency management across major industries, all over the globe, including construction, energy, facilities, high tech, manufacturing, mining and telecom.
For suppliers in our network, our audit and verification services help lower their safety incidents rate by 29%. As a result, about 50% of members find additional job opportunities within the first year of joining. In addition, our suppliers receive privileged access to the Avetta Marketplace, where dozens of partners offer special discounts for business services like insurance and work gear. Avetta serves more than 500 enterprise companies and over 125,000 suppliers across 120+ countries.