Why You Should Conduct Vendor Audits Post Selection
Not so great
You need to Login or Sign up to vote
With the global economy and most of the manufacturing outsourced, it is becoming more and more important to conduct regular vendor audits.
Conducting regular vendor audits is expensive but what is the cost of not conducting vendor audits?
- PR backlash for companies like Apple due to worse working conditions at Foxconn locations.
- Child labor is a big issue in developing companies.
- Penalties due to non compliance to policies laid down by watchdogs like OFAC.
So what is the solution, I guess the answer lies in narrowing down the scope and then establishing strong processes to track compliance.
Go to the link
- Segment your suppliers into different risk categories and identify suppliers with high risk.
- Establish the KPI’s you want to track and then identify ways to gather that data. Whether it is through supplier surveys, external third party information. It can further be augmented with site visits for validation of the collected data.
- Implement supplier information management systems so that can capture and store the information. The information should include their policy documents, incident reports etc. A strong follow is required with suppliers to ensure that this information is current. You can get some great insights from this article authored by Forensic Risk Alliance