Consumer Packaged Goods Companies Increasingly Rely on Aravo for a Unified Approach to Third-Party Risk Management

SAN FRANCISCO, Feb. 07, 2024 (GLOBE NEWSWIRE) -- Aravo, the leading provider of third-party risk and resilience solutions, today announced ongoing momentum from consumer packaged goods (CPG) companies that are using Aravo to manage and mitigate third-party risks. Aravo for Third Party Management helps CPG firms and their extended enterprise meet sustainability goals, improve supply chain resiliency and create brand differentiation.

CPG organizations are increasingly turning to Aravo’s third-party risk management solution to help them navigate a challenging environment faced with inflation, supply chain disruptions, labor shortages, and geopolitical trends that are driving higher risk. Emerging third-party risks include:

• Sustainability Risk. Sustainability is becoming increasingly essential for competing in the global market due to consumers’ interest in a brand’s ESG practices. To differentiate their products, CPG brands want to show that they are meeting and exceeding consumer expectations. Contributing to this imperative is a high dependence on third parties to manufacture products in a sustainable way. CPG firms not only need to create a supplier code of conduct, they also need to assess and verify adherence to these expectations beyond Tier 1 suppliers.
  
  A food and beverage company has deployed Aravo to integrate their ethical sourcing program with supplier risk management. As a result, they now have end-to-end program oversight and governance. In addition to efficiencies gained through automation, they have better data and real-time reporting that drives decision-making.

• Climate Change Risk. Disruptions due to climate change may be physical (e.g., storms and flooding), commodity-related (e.g., food production) and societal (e.g., ill health and migration), but are not limited to these categories.¹ These disruptions will have a material financial impact on supply chains.
  
  CPG companies need to conduct risk assessments and scenario planning for climate change so they can gain insight into potential impacts. In addition, they need to avoid over-concentration of third parties in one particular region or with a single supplier. By sourcing from several suppliers in multiple geographies, CPG organizations can be more resilient to business disruptions caused by climate change.

• Cyber Risk. There is a wide variety of highly undesirable outcomes that can result from a supply chain susceptible to a cyberattack.² These include disruption of the actual operation of the supply chain, significant damage to brand and reputation, impact on product safety and integrity, loss or theft of intellectual property, and substantial fines and fees.
  
  To address the exposures that third parties present, CPG firms need to map their Tier 1 and sub-tier suppliers so they can continuously monitor each supplier’s cyberattack surface. In addition, conducting a business impact analysis will help identify critical third parties and develop mitigation plans that detail how to recover and/or replace a supplier in the event of a cyberattack.

“CPG companies continue to face sustainability, reputational, supplier and other third-party risks so now is the time to get even more serious about their TPRM programs as ongoing geopolitical trends heighten these risks,” said Dean Alms, chief product officer at Aravo. “TPRM can no longer be siloed in different departments. CPG brands must adopt a centralized process that automates workflows and provides unified visibility into third-party risks within the organization and across its supplier ecosystem. Those who take a unified approach to TPRM are more likely to experience fewer severe disruptions to the business.”

Aravo provides unified visibility into all third parties and their profiles across 36 risk domains, including financial viability, legal status, ABAC, cybersecurity, data privacy, ESG and regulatory compliance, throughout the lifecycle of the relationship. Other key benefits of the Aravo platform include:

• Continuous third-party monitoring with integrations into periodic and real-time risk intelligence data to identify which of the critical third parties present the highest risk and proactively mitigate through corrective actions.
• Inherent risk assessments of overall information security and cyber risk as well as validation of the third-party’s policies, procedures and control. Aravo integrations with security and cyber risk intelligence providers, such as Black Kite and Orpheus, help streamline onboarding, enrich risk reviews, enhance continuous monitoring, and trigger alerts and workflows to log issues and generate corrective actions.
• Aravo for Climate Change Reporting, a due diligence assessment application for managing third-party carbon and climate change risk.
• Aravo for Climate-Related Financial Disclosure, a pre-built application that captures, aggregates and reports third-party data aligned to the Task Force on Climate-Related Financial Disclosures (TCFD) framework.
• Aravo’s Strategic Alignment Framework™, an adaptive methodology that helps prioritize business and operational objectives, drives organizational alignment and establishes a master blueprint and phased roadmap to achieve a customer’s long-term TPRM vision.
  

In a recent report, Verdantix recognized Aravo as a Smart Innovator in Supply Chain Sustainability Software. Aravo’s capabilities for third-party risk management, supply chain mapping and supplier network analysis were designated as market-leading with differentiated offering.

Additional Resources

• Third-Party Risk Management for Consumer Packaged Goods
• CPG Industry Solutions
• How to Manage Your 4^th Party Vendors
• ESG Initiatives, Mission, Statements Employees: The Importance of Alignment

About Aravo

Aravo is an industry leader that enables well-known global brands to accelerate their third-party risk management programs so they can respond to business disruptions, meet sustainability goals, and comply with regulations. Aravo’s platform and its broad range of risk domain applications delivers unified visibility into an organization’s third-party ecosystem to manage and proactively mitigate risks. Using Aravo, customers can grow top line revenue, avoid financial and brand liability, and gain process efficiencies. Aravo was founded in 2000 and is headquartered in San Francisco, Calif. Learn more at www.aravo.com.

Media Contact

Liza Goldberg, pr@aravo.com, 415.835.7622

¹ Gartner, CSCOs: Embed Climate Change Into Supply Chain Decision Making to Respond to Risk, April 21, 2023
² Gartner, Market Guide for Supplier Risk Management Solutions, Dec. 4, 2023

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