Vendor compliance plays a crucial part in reducing risks in the supply chain by making sure suppliers comply with certain quality, regulatory, or operational guidelines. By requiring suppliers to comply with the terms of their contracts and regulations, businesses can reduce the risk of legal issues as well as fines or disruptions caused by infractions. Vendor Compliance also allows businesses to detect potential risks earlier for issues with products, such as defects or ethical violations financial instability, which allows the use of proactive strategies to mitigate risks. This creates more stable and secure supply chain, while reducing the risk to financial, operational, and reputational risk.