What should she do?

Zara is a procurement manager who is thinking about working with a new supplier to source buttons for her clothes manufacturing business. Her manager has asked her to do some due diligence on the supplier’s financial stability.

What should she do?
A . use an outsourced third-party credit rating agency
B. use an outsources third-party risk management consultant
C. conduct a credit check on the supplier based on the information provided by them in the tender
D. conduct a risk assessment based on the information provided by the supplier in the tender

Answer: A

Explanation:

She should use a credit rating agency for this. She should not do this herself as she won’t have access to accurate information like an agency will. The supplier may not have been truthful in their tender. For information on Credit Rating Agencies see p.79