Supply Chain Due Diligence Checklist - SignalX
The due diligence process begins with identifying suppliers, the goods or services provided, and the countries in which they operate. Priority is given to suppliers that are critical to operations or operate in higher-risk regions or industries.
Suppliers are assessed for compliance with applicable laws and regulations, including trade, labor, environmental, and sanctions requirements. SignalX verifies that suppliers are not involved in prohibited activities and meet all licensing and regulatory obligations.
Why it is crucial to have a Chinese Supplier Due Diligence Checklist
A Supply Chain Due Diligence Checklist is crucial because it provides a structured and consistent way to identify, assess, and manage risks associated with suppliers. Without a standardized checklist, critical legal, ethical, operational, and reputational risks may be overlooked, leading to disruptions or compliance failures.
The checklist helps ensure compliance with applicable laws and regulations, including labor, environmental, trade, and sanctions requirements. It reduces the risk of legal penalties, regulatory action, and loss of business by confirming that suppliers meet mandatory standards before and during engagement.
SignalX expects suppliers to uphold high standards of ethical conduct and respect for human rights. This includes prohibitions on forced labor, child labor, discrimination, and unsafe working conditions, as well as adherence to fair employment practices.
Environmental responsibility is evaluated by reviewing suppliers’ environmental policies, legal compliance, and efforts to minimize environmental impact through responsible resource use, waste management, and emissions control.
Areas we have covered in our Supply Chain Due Diligence Checklist
Our checklist is designed to guide you through the Supply Chain Due Diligence process. It covers various areas including:
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Company Background Checks
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Financial Due Diligence Checks
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Operational Due Diligence Checks
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Product or Service Due Diligence Checks
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Legal and Compliance Due Diligence Checks
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Market and Competition Due Diligence Checks
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Environmental and Social Responsibility Due Diligence Checks
