Modern supply chain has become increasingly multilayered in nature. Larger projects, higher resource demands, and specialized skills requirements have made contracting frameworks more collaborative than ever. At least XX% of suppliers in the Terra network rely on subcontractors for the provision of works and services to their clients. However, it is challenging to know which subcontractors are working on your projects, who are compliant with your requirements, and how your prime contractors are managing them.
With each subsequent tier of subcontractors, operations and associated responsibilities tend to move beyond the visibility scope of hiring organizations. Such circumstances can make it diffiicult for you to gauge the potential risks arising from its tier 2 and 3 subcontractors, let alone mitigate them.
The following are some of the most common risks posed by subcontractors which continue to challenge supply chain resiliency:
Increased exposure to safety risks and lack of proper controls can often result in an injury or fatality which can have serious implications for a company.
Often companies have little to no insight on the safety standards followed by tier 2 and tier 3 suppliers and subcontractors.
Extended network of suppliers can often be susceptible to several types of risks in the form of health and safety, cybersecurity, and ESG non-compliance, for which the parent organization is often held liable.
Conflicting material usage, corruption, inhuman working conditions, and data abuse are just a few examples of legal violations stemming from poor management of subcontractors.
Even companies that manage their own data with the most robust security firewalls may fall victim to hackers if their third-party vendors utilize the information through less secure systems.
Companies may risk facing costly sanctions or suffer from reputational damage while unknowingly working w ith subcontractors indulging in unethical work practices.
With Terra’s Subcontractor Management solution you can gain complete visibility into your connected suppliers’ subcontractors. The solution allows clients to view a supplier’s subcontractors’ compliance status and manage their compliance status through variances. Suppliers can search for and add subcontractors to their network in the Terra Connect™ platform to source them for their clients’ jobs. Suppliers who have subcontractors in the Connect platform are referred to as the “Prime Contractors” to differentiate them from suppliers without subcontractors.
No additional configuration needed to view/manage subcontractors. Clients and suppliers can readily see which subcontractors meet the requirements upon connection
Avetta’s subcontractor management solution exists behind a feature toggle. Turn it on and it’s done. No one-off configurations needed.
View connections, trades, location, and compliance information for all the subcontractors
The Terra SaaS platform helps clients manage supply chain risk, and their suppliers, to
become
more
qualified for jobs. For the hiring clients in our network, we offer the world’s largest
supply
chain
risk management network to manage supplier safety, sustainability, worker competency and
performance. We perform contractor prequalification and worker competency management across
major
industries, all over the globe, including construction, energy, facilities, high tech,
manufacturing, mining and telecom.
For suppliers in our network, our audit and verification services help lower their safety
incidents
rate by XX%. As a result, about XX% of members find additional job opportunities within the
first
year of joining. In addition, our suppliers receive privileged access to the Terra
Marketplace,
where dozens of partners offer special discounts for business services like insurance and
work
gear.
Terra serves more than XXX enterprise companies and over XXX,XXX suppliers across XXX+
countries.