Should you audit your suppliers?
Posted on 22nd June 2018 at 15:01
During the process of initial supplier selection there is the requirement to conduct some form of audit on potential businesses. This may be just a "desk top audit" whereby their financial status is checked based upon published accounts or it might be requesting a detailed supplier selection questionnaire completed alongside the RFQ document.
But what sort of audit process do you follow once they are awarded the contract? Do you feel it necessary so long as they are delivering on time?
In heavily regulated industries it is common place to conduct supplier audits with a team of people reviewing processes, manufacturing practices, certification procedures and a myriad of other areas to ensure compliance.
But this deep dive is not necessary for many of us. Doing nothing is also not the best option.
By understanding what is most important to you as a business and what expectations you have of a supplier will provide you with the start of an audit checklist. It may be the capacity to ramp up and meet your expected sales growth. It might be the understanding and flow down of your CSR policy if that is something of utmost importance to your brand.
Pro-Outsourcing can help you to develop a checklist to take with you when visiting and auditing suppliers. We are also able to accompany and support you during these visits.
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