Supply Chain Risk Management, PAS 7000
About Supply Chain Risk Management, PAS 7000
PAS 7000, a publicly available specification (PAS), is a supply chain pre-qualification framework. It provides model of the governance, risk and compliance (GRC) information model for buyers to pre-qualify suppliers’ intent and ability to adhere to key compliance requirements for procurement activities.
PAS 7000 addresses product, process and behavioural criteria for supplier prequalification. For prequalification, suppliers demonstrate and apply the principles of good governance in order for buyers to make informed decisions about whether or not to engage with a potential supply chain partner.
Why it matters
PAS 7000 sets out requirements for establishing the governance, risk and compliance (GRC) status of supply chain relationships.
It establishes the content and extent of supply chain relationship information that include capacity and capabilities, environmental management, employment policies, business continuity, traceability and data protection, that is fundamental to the establishment of supply chain partnerships.
The information model is structured and equally applicable for both suppliers and buyers that:
- Provides a repeatable robust model with degree of flexibility for tailoring the information to particular organizational needs
- Helps mitigate risks and reputational damage