Services Case Studies

Business Relation: Vendor

Background

• The Client was a large Japanese Company engaged in the manufacture and sale of automobile parts, dies, and melding equipment.
• The Client hired us to do Integrity Due-Diligence on it’s 40 selected Vendors based in India.
• The central idea behind this activity is to gather any adversarial Information related to Vendors and also the Conflict-of-Interest of the Vendors with their selected 5 (Five) employees.

Key Actions Taken

• We conducted detailed internet research categorized into case-specific keywords
• Mapping of social media profiles of Vendors.
• Search for the Litigation and regulatory orders against the Vendors
• Onsite Assessment at vendor location(s) to identify any related adversarial information.

Underlined  Results

• An employee was found to have an immediate personal relationship with the Vendor.
• Two Vendors claimed business locations were found not to be existed.
• One Vendor was found to deal in the Textile Industry, however, claimed to be in automotive industry.
• Two Vendors were found to be in a very close relationship with influential political party leaders

IDD Insights

• Conflict of Interest leads to less control over the supply chain.
• Non-existence of the claimed business location or wrong claim of industry work experience indicates false promises and the possibility of inferior quality products which can impact the Company’s brand reputation.
• Influential political relationship indicates the potential Production loss/money loss over the incomplete delivery or poor quality delivery of material.