What is the purpose of conducting supplier audits?

Conducting supplier audits serves the essential purpose of assessing compliance and performance. During these audits, organizations evaluate whether suppliers adhere to contractual obligations, industry standards, and regulatory requirements. This helps in determining the quality of products or services delivered and assures that the suppliers meet the company’s expectations and specifications.

By identifying areas of compliance and performance, organizations can also enhance supplier relationships and improve overall supply chain effectiveness. Such evaluations can lead to better practices, risk mitigation, and opportunities for development and collaboration, ultimately contributing to strategic partnership growth.