Running Etsy and its marketplace demands a dependable third party network with a structured TPRM process. They need to be certain of their suppliers, and understand the potential risks they pose, so they can mitigate the risks by ensuring they manage supplier relationships that are commensurate with the perceived risk.
Nick Colon, Senior Compliance Manager, who is a leader of the Supply Chain Management Program at Etsy, and Jag Lamba, CEO and Founder of Certa, had a webinar to discuss the best practices for third party lifecycle management.
The key takeaways:
Supplier Diversity & Sustainability
One of Etsy's main objectives is to have a diverse supplier base. As part of the onboarding process, Etsy has an impact questionnaire and asking suppliers to self-disclose, including asking about employment practices and environmental goals. Further, Etsy uses integrations with a third party data provider to independently verify self-reported information. Etsy is also implementing an internal search function within Certa that will allow its employees to search for diverse suppliers utilizing a third party data source.
Etsy is also an environmentally conscious company, and was one of the first companies to do carbon offset shipping. This means that everything you buy on Etsy, there is a carbon offset in the form of a donation to a specific cause, such as planting trees in India.
Automating Risk Management
Certa's automated system allows Etsy to use a collaborative, score-based model that incorporates a small team that manages 11 different compliance areas. On the onboarding side,Etsy performs a risk-assessment based on information provided by a business user and supplier to understand and evaluate the risk of engaging a supplier. The automated process allows the team to flag risks which informs the commercial lawyers on how to structure a contract with the correct terms and conditions. Etsy is also flagging suppliers with access to their systems or data and escalating them to the InfoSec team for enhanced due diligence. By implementing the Certa software, Etsy has also created efficiencies for the Accounts Payable team for how they onboard suppliers to the procurement system. The information gathered throughout the onboarding process enables Etsy to perform sufficient oversight of their suppliers throughout the relationship, a process they will look to automate as their program continues to evolve.
Engaging a third party can be a complex, information heavy, and multi-layered task. However, utilizing a tailored and streamlined automated process can help reduce the operational complexity associated with supply chain management across multiple stakeholder groups.To learn more about how to automate your entire lifecycle management and the benefits of doing so please reach out to us at email@example.com.