SGS Compass launches for data-driven global supply chain risk management and compliance

SGS, the world's leading testing, inspection, and certification company has announced the launch of SGS Compass, its supply chain solution for enhanced data-driven global supplier risk management and compliance. Leveraging the company's technical and cross-industry expertise in supplier audits and certifications, SGS Compass incorporates a robust supplier evaluation methodology to identify and categorize suppliers into four areas of risk that offer a 'single source of truth' for visibility, compliance, traceability and sustainability. This comes against a backdrop of several surveys conducted globally by industry thought leaders uncovering that a large majority of companies feel they do not have full visibility of their supply chains, including their tier 1 suppliers.

"Organizations are looking for more effective ways of evaluating and managing their complex global supply chains including contractors, vendors and suppliers. There is also the added complexity of geopolitical unpredictability, in which we are seeing supply chain restructuring and demand for supplier optionality - which could lead to supply chains becoming more localized or regionally based," said Pablo Lomeli, Vice President of Supply Chain Solutions at SGS (North America). "Regardless of how organizations seek to procure, the common thread is that they're looking for real-time and robust visibility to monitor supplier production and integrity - and this is precisely what SGS Compass delivers."

SGS Compass addresses the lack of supplier visibility caused by international or multi-tiered supply chains, amplified by the accompanying pressure to ensure that supplier operations and products comply with regulations, industry standards and societal expectations. Importantly, there is a growing need to satisfy consumer and investor expectations by mitigating negative social and environmental practices such as exploitative labor and environmental damage. Today, more than ever before, consumers assign higher value to products derived from ethical supply chains and are likely to develop a negative perception of a brand due to even a single poor ethical issue.

The new SGS solution is cloud, AI and IoT driven. It leverages large data sets, complemented by predictive analytics and blockchain technology. Supplier test results, certificates, ISO certifications, audit reports and sustainability scores can be integrated into a permanent database of each instance of activity undergone by a given supplier or product through various phases of its supply chain, offering comprehensive risk management per supplier.

"Bringing together our knowledge and experience in delivering TIC services to companies worldwide, SGS Compass offers a supply chain solution that address the major issues our clients encounter. The solution can be used by any company with local or international suppliers, enabling clients to examine risks and validate suppliers at any junction in their supply chain, at any given point in time," said Lomeli. "Our company's tagline is 'when you need to be sure'. SGS Compass delivers the assurance that decision-makers need to proactively identify risks in their supply chain in order to pivot and avoid disruptions to their business."

SGS Compass provides an end-to-end solution for supply chain risk management and proactive compliance. Its core value-propositions are centered on:

• Governance: implementing multi-tier supply chain transparency and encouraging Board or Committee-level oversight.

• Performance: improving supply chain performance through up-to-date supplier competency verification and continuous production monitoring.

• Intelligence: providing data-driven insights on current or future hindrances including geopolitics.

In alignment with SGS's corporate Strategy 27, SGS Compass is responding to a megatrend driving growth in the TIC industry, which is innovation in digital capabilities. An end-to-end data-driven supplier risk management solution serves as a powerful tool to strengthen digital transformation and compliance for organizations across industries. This new solution also contributes to SGS's IMPACT NOW for Sustainability by delivering on societal expectations and ESG regulation. SGS Compass strongly reflects SGS's commitment to sustainability, building on its position as one of the world's most sustainable companies, as ranked by TIME Magazine and Statista in 2024 and 2025.