There are many reasons for using a supplier auditor that is based in the supplier territory.
One of the key ones is to be able to respond immediately to unforeseen changes. This can include everything from a global virus pandemic, transportation blockage, natural disasters, political upheaval, new tariffs, legislation, and trade agreements, as well as revised working conditions.
Managing the process
Appointing an experienced local auditor means you can now effectively manage these last minute changes and avoid any disruption to your critical supply chain. This is a major benefit for all businesses, especially those working to extreme margins.
Businesses that rely on low cost procurement can easily lose their competitive advantage if supplies are delayed, below standard or incorrect. Having a professional auditor on the ground ensures the business is not compromised in any way and can adapt and adopt the most effective course of action without any time delay.
Quality as standard
In addition, an underperforming supplier can have a significant impact on the efficiency of the total supply chain process. We protect, giving you peace of mind that quality is maintained, standards are followed, and compliance is actively monitored.
Our auditor is always acting in your best interest and being local not only allows them to manage the technical aspects of the product, but they are able to respond to the cultural aspects on site.
This can provide unique intelligence and insight which can be a competitive edge as well as being able to mitigate any risk factors, such as changes in the local economy, politics, and legislation.
We will use your inhouse quality management systems and scale to ensure that these standards are enforced by your supplier. If you do not have these in place, we will work with you to agree on the appropriate methodology.
Local customs and culture
Our on the ground supplier audit service allows UK companies to adhere to local customs and culture, which therefore provides them with a major competitive advantage.
In Asia, working practices and management styles are different to the way businesses operate in the West. Culture plays a significant role with a strict adherence to an organisational hierarchy. In these territories, leadership is primarily autocratic, and communication is less direct than in the West. In addition, there is a dominant emphasis on non-verbal communication and etiquette.
This is where a locally based auditor really comes into their own, as they can more easily pinpoint potential issues, and ensure you are able to put remedial processes swiftly into place.
An example of this is pricing. Asian suppliers are reluctant to discharge staff during an economic downturn, as experienced during the Covid-19 pandemic. This can, therefore, lead to a change in the contracted price and consequently have a repercussion on the UK landed price.
Following our ‘on the ground’ supplier audit we will supply a written report of any steps that need to be taken to improve the efficiency of the organisation’s supply chain.
We can also recommend action that should be taken on a short term and long term basis.