Utilise Analytics to Manage Contracts with Boycotted Suppliers

Investigate your supply chain with Qlik and Doorda

The latest UK government Procurement Policy Note (PPN) addressed how contracting authorities can further cut ties with companies subject to boycott. This article will provide you with some insight into how to investigate and manage your contracts with boycotted suppliers, by utilising Qlik and Doorda.

Organisations advised to take action

The PPN applies and refers to the following as ‘In-Scope Organisations’:

• All central government departments
• Their executive agencies
• Non-departmental public bodies

However, it was advised in the accompanying FAQ that others involved with public sector contracting should consider acting. Furthermore, other sectors and independent organisations are also taking action.

Finding contracts with boycotted suppliers to terminate

When it comes to discussing contract termination, the matter is not always as simple as bringing up a list of boycotted suppliers.

You might also want to search for:

• UK registered suppliers controlled by a boycotted supplier
• Boycotted subcontractors
• Boycotted contract bidders
• Other boycotted suppliers in the supply chain

For an overview, use Qlik to look through your supply chains and to find the Persons of Significant
Control (i.e. beneficial owners).

“A person with significant control (PSC) is someone who owns or controls a company.

They’re sometimes called ‘beneficial owners’. UK registered companies must identify their PSCs and tell Companies House who they are. A company can have one or more PSCs.”

Procurement Policy Note 01/22 – Frequently Asked
Questions

You can use this information to validate whether the companies you have contracts with are boycotted suppliers or if they have strong ties to them.

If a trust or firm meets any nature of control, all trustees or members/partners of the firm should be recorded as PSCs of the company and this information registered at Companies House.

Procurement Policy Note 01/22 – Frequently Asked
Questions

Fact check your supply chain before taking action

To conduct due diligence you can use publicly available data to check supplier details. You can use
the Companies House Register which will also provide information on the PSCs for
trustees or members/partners of a registered company. Other open information sources can also augment your investigations, made simpler through Doorda.

Doorda is a leading UK provider of aggregated and augmented  Open Data solutions and provides trusted data, on-demand. Consolidating and standardising thousands of datasets into one self-service Cloud Platform. The data is produced by consolidating up to date, trustworthy data from original sources. These sources include HMRC, Ordnance Survey, Land Registry, Local Authorities and Companies House:

Be selective with your terminations

Another consideration is whether terminating a contract could be beneficial to the boycotted supplier. The PPN’s accompanying FAQ touched on this where they gave the example:

…a customer might have just started a fixed three year energy contract with a supplier at an agreed price of 50p/therm. The current market price however is much higher. If the customer terminates the contract, the supplier can now sell their energy at a higher rate. Meanwhile, the previous customer might secure a contract with a different supplier but this too is at the higher market rate.

Procurement Policy Note 01/22 – Frequently Asked
Questions

If your organisation wants to bring about effective action, utilise Qlik to inform you of whether the termination will help or hinder the boycotted supplier.

Know who you do business with

Now you know how to investigate your supply chain and who benefits from and controls your current contracts using Qlik, you might also be interested in learning about how Qlik can help you with your vendor-risk-management policies and procedures as part of an efficient #CyberHygiene strategy.

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