Supplier assessment and assurance specialist Altius has published a free guide to supply chain compliance to help organisations of all sizes focus on performance rather than problems when managing suppliers.
The guide covers strategies to address common problems, such as difficulties in sourcing good quality contractors and managing supplier lists and supplier information; dealing with poor or variable performance or incidents on site; recognising and classifying levels of risk, and ensuring the right suppliers are used for the right contracts.
A three-step compliance process of: capability assessment, management and monitoring is explained. This begins with gathering, verifying and authorising relevant supplier information and integrating it into procurement and ordering systems for full visibility.
The next step of ‘management’ is to set clear policies and rules, formalise contracts and specifications and set controls and restrains – so that suppliers are clear of what is expected and nothing is left to chance.
The final ‘monitoring’ stage involves measuring performance against key performance indicators, spot checks on behaviour, and targeted auditing of areas that need improvement or carry risk – to assess that everything is working
Gary Plant, Managing Director of Altius, said: ” Effective supply chains offer rich rewards of lower costs, greater efficiency, innovation and improved quality, but they can also bring liability in the form of delays, problems, waste, cost and reputational damage.”
“By following the three core principles detailed in our guide and using smart technology and processes, organisations can minimise risk and gain better visibility of their suppliers. This means they can then focus on developing, rather than defending their supply chain.”
Download the ‘Introduction to supply Chain Compliance Best Practice’ here