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What Are the Benefits of Supplier Quality Audits?

By Avetta Marketing
December 16, 2019
5 minutes
What Are the Benefits of Supplier Quality Audits?

What are the Benefits of Supplier Quality Audits?

Supplier quality audits are the process of verifying that each of your suppliers is adhering to both industry standards as set by the law and independent organizations, as well as your own company and brand standards. They are widely recognized as a pertinent part of doing business. 

While there are many reasons for this practice, here are the six biggest benefits of performing supplier quality audits.  

1. A Reduction of Risk

A significant amount of risk accompanies extended supply chains, outsourcing, and globalization. The risks include:

  • Quality

  • Safety

  • Business Continuity

  • Reputation

  • Cost Volatility

  • Supply Disruption

  • Non-Compliance Fines

  • Safety Incidents

  • And More

However, risk management effectively audits the supply chain so a business can identify each specific risk, and then greatly reduce risks, to avoid potential costly fallout.

2. Better Contractor Management and Business Relationships with Suppliers

Your business can gain ground when costs are reduced, contractor management is streamlined, brand reputation is protected, and long-term profitability is achieved. This is easier done when the following tasks are taken care of efficiently:

  • Supplier Prequalification

  • Supplier Audits

  • Worker Management

  • Insurance Monitoring

  • Analytics

Maintaining good relationships with your suppliers is critical. Often, having a third party do the supplier quality audits for you, allows you to keep your focus where it belongs: improving and growing a cross-beneficial business relationship.      

3. Expert Guidance on Safety and Sustainability Performance

While you already have strategies in place to manage the health, safety, and behaviors within your own organization, how do you know your suppliers, contractors, and vendors are similarly motivated? 

Supplier quality audits actively foster an aligned culture of health and safety through:

  • Contractor Prequalification

  • Document Management

  • Auditing

  • Employee-Level Qualification and Training

  • Insurance Verification

  • Business Intelligence

4. Closer Alignment with Your Compliance Standards

Your business is under pressure to maintain compliance with:

  • Country-specific regulations

  • Industry standards and regulations

  • Corporate policies and standards

It can be a complex challenge to ensure each supplier (and each worker) qualifies– and the stakes are high. However, potential costs, disruptions, and damages can be avoided when a company is proactive in its approach to supplier compliance.  

5. Better Procurement Decisions

Procurement teams are under a lot of pressure to find, qualify, monitor, and manage suppliers, all while lowering the cost of doing so. With supplier quality auditing, procurement managers can make better and more cost-effective procurement decisions by:

  • Mitigating risk through communication, evaluation, selection, and monitoring services.

  • Gaining unprecedented visibility into safety statistics, risk profiles, and historical data.

  • Reducing lead time and improving efficiency with ongoing guidance and support throughout the procurement process.

  • Maximizing data quality on the entire supply chain.

6. Sustainable Business Practices

Today, an organization committed to improving the environment through sustainable growth is required to meet both regulatory requirements and societal expectations. Managing the long-term value of your company and its brand is party dependent on properly managing the environmental, social, financial, and economic impacts throughout its supply chain. All of this can be done more easily with thorough supplier quality audits.

How to Get Customized Supplier Audits

While you want to trust and count on your suppliers, do you really know for sure that they have the proper procedures in place, that the procedures are being actively applied, and that their employees follow their established procedures? 

Verification is a complicated and time-consuming task, yet its importance is critical. That’s where Avetta steps in. You’ve got your own work to do, so let us take care of:

  • Determining your goals

  • Reviewing supplier policy, procedures, and training documents

  • Field observations for site-level visibility

  • Reporting findings and giving recommendations

  • Coaching suppliers on how to close gaps

By having the quick visibility you need, you’ll be in a better place to aptly manage risk with confidence and protect your brand. 

For more information about Avetta's Contractor Management software, Contractor Prequalification or Supply Chain Risk Management, visit, email [email protected] or call 844.633.3801.

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