A Fortune 500 company had no processes in place to evaluate potential foreign distributors, and was concerned about the quality and consistency of some of the distributors that had previously been appointed.
Findings
- We created and worked with a cross-functional team to create a due diligence process, including forms, checklists, and training, and implemented this process across the organization.
Solutions
- Reached agreement with cross-functional team on processes, timelines, and responsibilities
- Identified cost-effective resources (both internal and external) to perform and review the due diligence materials obtained
- Created forms to standardize the due diligence information obtained, how it was routed and reviewed, and an escalation process
- Created training program for various functions about the importance of due diligence and the processes implemented
Results
- Effective, comprehensive, and easy-to-follow due diligence process implemented across entire organization
- Consistent process for selecting foreign distributors
- Clear understanding of risks and benefits of the process across the organization
- Partly as a result of this work, the organization moved from transactional distributors to a strategic distributor recruitment process