QIC Guru

Supplier audits need to focus on the suppliers and quality management systems that are truly critical to the supply chain, and better utilize available expertise to ensure that performance requirements will be met. Why do we perform supplier audits/? Once we understood that the purpose is to ensure overall success of the supply chain, then an expansion of related audit issues is also required. Supplier quality system audits have contributed to spreading the word about the importance of quality, and the need for a management system that helps keep quality on every business’ agenda. It’s now time to expand the boundaries of our thinking to include other issues, such as risk, that allow a business to grow and prosper or fail.

Companies that do not utilize a strategy for managing supply chain risk may be exposed to potentially negative influences, including impact on procurement, manufacturing and time to market processes in supply chain.

It’s for these reasons that supply chain risk management is now an essential part of a company’s supply chain strategy. It is the only way companies can ensure risks are identified in the entire value chain and mitigated to deliver financial goals.