Benefits of supplier audits
Quality audits of suppliers represent the processes of verifying that each of them complies with industrial, legal and regulatory standards, as well as customer standards and requirements.
Although there are many reasons for this practice, here are some of the most important benefits of performing quality audits on suppliers:
- Risk reduction
A significant amount of risk is accompanied by extensive supply chains, outsourcing and globalization. Risks include:
a quality
o Safety
o Business continuity
o Reputation
o Cost volatility
o Interruption of supply
o Fines for non-compliance
o Safety incidents
- Better supplier management
The company can gain ground when costs are low, supplier management is simplified, the brand's reputation is protected and long-term profitability is achieved. This is made easier when the following tasks are managed effectively:
o Supplier prequalification
o Auditing suppliers
o Project management
o Insurance monitoring
o Statistical analysis
Maintaining good relationships with suppliers is essential, and this requires transparency, respect and a partnership with common interests and goals.
- Specialized safety and sustainability performance guidance
Supplier quality audits actively promote a culture of aligned health and safety by:
o Prequalification of the contractor
o Document management
o Audit
o Qualification and training at employee levels
o The vision of business development
- Align with your standards of compliance
Your company is under pressure to maintain compliance with:
o Country specific regulations
o Industrial standards and regulations
o Corporate policies and standards
It can be a complex challenge to make sure every vendor qualifies - and the stakes are high. However, potential costs, disruptions, and damage can be avoided when a company is proactive in addressing supplier compliance.
- Better purchasing decisions
Procurement teams are under constant pressure to find, qualify, monitor and manage suppliers while reducing costs. With supplier quality audit, procurement managers can make better and more cost-effective procurement decisions by:
o Risk mitigation through communication, evaluation, selection and monitoring services.
o Gaining unprecedented visibility into safety statistics, risk profiles and historical data.
o Reduce delivery time and improve efficiency with ongoing guidance and assistance throughout the procurement process.
o Maximizing data quality throughout the supply chain.
- Sustainable business practices
An organization committed to improving the environment must meet both the regulatory requirements and the expectations of society. Managing the long-term value of your company and its brand depends on properly managing the environmental, social, financial and economic impact throughout the supply chain. All this can be done more easily with detailed supplier quality audits.
Checking is a complicated and time consuming task, however it is essential.
