17 February 2016

Three Reasons in Favour of Supplier Audit

The process of production has become more intertwined and interdependent than ever before. In such a situation, supply chain management has become extremely important. Supply chain management consists of several areas or functions, among which, auditing suppliers even before the production starts is most essential. While there are certain reputed company audit solution providers in Panyu, it is necessary that you realize the significance and the process of supplier audit first.

An audit program helps in monitoring external supply chain. A good audit ensures that the organization and its products are ready for competing in the global market. Audit program managers are required to interact with procurement departments to make sure that the global supply chain runs smoothly. At times, oversight might also be required for the first, second and third tier suppliers. This is further determined by the organization’s objectives and the customers’ requirements.

  • Be Assured of Reliability

The main purpose of an audit is to align the requirements of the manufacturer with the potential of the supplier. So, one of the basic responsibilities of the auditors is to find out the resourcefulness of the supplier. In doing so, the manpower, working conditions and the level of efficiency of the supplier are scrutinized. Also, attempts are made to ensure that the supplier has actually grasped the exact requirements and can, therefore, work accordingly to get the desired output.

  • Free of Legal Complications

Auditors visit suppliers beforehand and check to see if the latter has all the necessary licenses and certifications in place. Cropping up of legal complexities midway through the production process is the worst nightmare of any enterprise. A well executed audit removes the possibilities of such unpleasant situations completely.

  • Best Quality Practices

In this highly competitive business scenario, only the best survives. So, as a business entrepreneur, you need to make sure that your product leaves no scope for complaints. And this can be achieved only when the supplier puts the best practices in place.

While these points well explain as to why supplier audit is important, it is always best to choose a reliable quality control company to make the most of the process.