Synertrade CEO on Supply Chain Reputation Management

Failing to conduct thorough due diligence before onboarding suppliers can be catastrophic for retailers – especially when legal and ethical wrongdoings in their supply chain are unearthed. 

Often, the result is reputational damage, reduced customer loyalty and, ultimately, a decline in sales. 

Olivier Berrouiguet, CEO at Synertrade, says the power to avoid such an eventuality lies at the door of the procurement function.

Here, Olivier provides insight into how businesses can transform their reputation management through an effective procurement process. 

Tell us a bit about yourself and your role

I have 25 years of experience in management, business development, strategic marketing and sales, in various industries such as pharma/chemicals, automotive, embedded electronics and digital transformation.

I’m currently CEO at Synertrade Group, a subsidiary of Econocom. I’ve been in this role since 2021 and I’m responsible for leading Synertade’s operations and driving transformation for its customers, owner and employees.

For those unfamiliar with Synertrade, what services does the company provide?

Synertrade is a full source-to-pay (S2P) SaaS software solution, assisting enterprise clients around the world to maximise efficiency across their procurement process.

We provide a complete solution which helps them to manage supplier relationships and keep costs under control by digitising everything from evaluating new suppliers, contracting and onboarding, to lowering risk, improving ESG and managing budgets.

Why is reputation management essential for business in the modern landscape?

Reputation management is essential for businesses, enabling them to attract more customers, increase sales and build loyalty.

As part of these efforts, every department has to do its bit to avoid reputational issues that could tarnish the overall brand image.

In the era of social media and online news, internal issues can quickly become external reputation issues that cause harm, highlighting the need for horizon scanning.   

How can businesses execute effective background checks on potential suppliers to ensure they align with a business’s overall standards?

Before choosing to work with a supplier, businesses can execute effective background checks using clear and objective evaluation criteria such as alignment with objectives and quality standards.

Background checks can delve into areas of external risk that have the potential to impact the supply chain, such as financial and political events and acts of nature. Businesses can then ensure that the standards of potential suppliers align with their standards and that there is not a significant gap between the two.

Ultimately, background checks can focus the energy and resources of organisations towards working with suppliers which are right for them.

Can you explain how tools like supplier databases and advanced analytics mitigate unforeseen issues in an organisation’s supply chain?

High-quality and accurate data can mitigate unforeseen issues by providing a 360-degree view of each supplier so strategic and data-informed decisions can be made.

The supplier database forms the cornerstone of effective supplier relationship management (SRM), allowing day-to-day relationships with strategic suppliers to be managed more effectively. Identity resolution and data from third-party providers can be combined to spot unforeseen issues by providing a single source of truth.

Additionally, advanced analytics make it much easier for trends and changes to be monitored and flagged when escalation is necessary, sifting through data faster than is humanly possible to enhance proactive risk management. 

What's the best way for businesses to ensure suppliers continually meet business standards?

Effective SRM practices are critical to ensure adherence to relevant regulations. Organisations can remain continuously compliant by streamlining compliance with documentation automation, tracking regulatory changes and monitoring procurement processes.

The digital transformation of procurement functions increasingly gives decision-makers the oversight and data necessary to avoid risk in their supply chain environments.

Procurement issues can easily become headline news stories and cause reputational damage, which has been highlighted recently with issues involving a large retailer and the impact on their planned IPO.

Businesses need to be proactive in monitoring and addressing those environments 24/7 and having the right SaaS solution in place can make that process more manageable.

Why is it so important to prioritise risk management in the procurement function?

In an uncertain global operating environment, businesses must prioritise risk management in their procurement functions to stay ahead and mitigate risks swiftly.

From ESG to changing legal requirements, it’s easy for organisations to encounter issues in their procurement environments, reinforcing how risk management can act as a line of defence against reputational challenges. 

Additionally, risk management should include contingency planning to best prepare teams for supplier failures or emergencies. These can take place at short notice and have a significant impact.

In today’s world, risk is unavoidable for every organisation. However, by prioritising risk management in procurement function, they can be better informed and ready to take proactive measures when necessary to remain firmly in control of their operations and supply chain environments.

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