ABSTRACT
Supply chain vendor compliance is all about the establishment of and adherence to existing standards, rules by which all vendors conduct business with a customer enterprise. In tackling some of the issues surrounding the questions of data management, the characteristics of Big Data can provide a framework within which to begin addressing the fundamentals. The common use of the data collected in a vendor compliance program is to analyze vendor performance and produce the vendor scorecard, integral components of a supplier relationship management initiative. These same data points can also be used for a supplier risk management program to ascertain whether a supplier is on the brink of failure. The control environment is also known as the "tone at the top". The customer enterprise should not unethically use chargebacks —the financial penalties for non-compliance—as leverage in vendor deals to sweeten contract terms in order to acquire sought-after brands.
