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What is a supply chain audit?

A supply chain audit is the process of benchmarking an organisation’s extended supply chain in one or more dimensions against industry best practice, regulatory requirements, or internal control framework. The dimensions to be audited may include legal, contractural, social, ethical, environmental, risk, and quality.

An audit is based on careful research and an in-depth analyses of the data gathered about an organisation and its suppliers. It may require on-site visits to factories, warehouses and other facilities in the supply chain.

Why audit the supply chain?

An audit may benefit an organisation and its stakeholders according to the dimensions to be examined. An organisation may choose to be audited for its own benefit or an audit may be required by a regulatory body or a customer.

An audit may enhance an organisation’s reputataion by demonstrating compliance to an ethical or environmental standard.

An audit may identify financial and legal risks within the supply chain which need to be managed.

An audit may identify where best practice is not observed and quality can be improved.

The auditor’s report enables an organisation’s senior management to make informed decisions based on reliable information.

Our methodology

PSA will agree the scope of  the audit with you. Then experts in the relevant standards will gather and analyse the data. They may conduct desk-based research or make on-site visits depending on the nature of the audit.

Once all of the data is collected and analyzed, we meet with you to discuss our findings. We deliver a final report to senior management with a detailed presentation of the findings and our recommendations for the next steps to address any issues found.

Contact us to discover more about the benefits of auditing your supply chain.

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