Even if there is no legal or initial buyer requirement for a supplier to go through an audit, Achilles Audits can provide a multitude of benefits for suppliers, from improving chances to win new business to a cost-effective review of an organisation’s management systems.
Here are our five reasons why suppliers should undergo an annual audit.
1. Improve your business
Undergoing an audit encourages suppliers to improve their business operations on a regular basis and step up their game each year.
As part of the audit process, Achilles’ qualified assessors validate everything from on-site accident records to ensuring organisations have a valid corporate social responsibility policy. So knowing that we’ll be visiting should provide you with the nudge you need to take action to ensure that your organisation has the right documentation and practices in place.
In fact, our internal research shows that after an organisation has undergone four years of our supplier audits, incidents of non-compliance with health and safety legislation decreased by an average of 73 per cent.
Additionally, we know that buyers are paying attention to organisations’ audit results, especially monitoring that they are improving year on year as they implement continuous improvement plans. Just like buyers need to step up their game, they are expecting suppliers to do the same. .
2. Add a competitive edge
Audits can be pretty daunting, but if all of a supplier organisation’s operations are in order, there won’t be anything to worry about.
Many buying organisations need to complete more thorough due diligence on their supply chains due to increased legislation for example, which means those suppliers who are more proactive in taking steps to provide evidence of further evaluation could gain a competitive edge. What’s more, buyers will be able to see that the organisation is a progressive company that’s constantly looking to improve and stand out from the crowd, consequently increasing its competitiveness and providing buyers with peace of mind.
3. Increase your organisation’s credibility
Having undergone an audit also demonstrates to buyers that a supplier is committed to carrying out their contract in an efficient and compliant manner.
However, it doesn’t just show that the supplier is committed to a single supply chain contract, it demonstrates that they are ready to do a good job on every contract and that they want to provide their services to the industry as a whole, not just one buyer.
As a result, relationships with buyers are more likely to be a positive and successful, making it easier for suppliers to collaborate and deliver services in line with the buyers’ expectations, once again minimising risk, if not eliminating it completely.
4. Add value
Aside from boosting a supplier organisation’s reputation, it’s highly likely that top priority will be given to increasing a company’s revenue and adding value to the brand over the long term.
Many of our customers report that undergoing an audit provides them with business improvements and increased business opportunities!
5. Impress buyers
On the whole, it boils down to the fact that there is a requirement to impress buyers to win more supply chain contracts.
In some communities, buyers have minimum scores or levels of compliance that they want suppliers to have achieved when selecting contractors for their opportunities or projects. For example, those who have undergone Achilles UVDB Verify, this level is normally set around 75 per cent.
Get in touch with Achilles today to learn more about how our supplier audit could benefit your business or watch our video to learn more about how to prepare for an audit.