There is no law that requires any supplier to undergo an audit. So, go through the quite complicated process and documentation? Undergoing a supplier audit will definitely be a benefit to the company, and aside from that, it will ensure continuous improvement thus, resulting to a more cost-efficient review of the management systems being used.
Photo from http://www.utc.com/Suppliers/Pages/Supplier-Code-of-Conduct.aspx
Here’s some reason why a company should prefer to undergo an audit despite not being mandated:
- Business Improvement
- Increase competitive advantage over business rivals
- Intensify the credibility of the organization
- Improve company’s brand and reputation
- Impress both existing and potential client
An organization must ensure that an effective and efficient supplier audit is scheduled and done in a timely manner. Whether it is annually done or in a more frequent routine, the bottom line is that it is carried out to ensure that improvement is the main objective of the entire process.