Reliable and quality suppliers are important for the success of any procurement, and together with that for the success of the company. Relying on the same suppliers for many years leads to potentially unforeseen risks and jeopardizing the business. That is why a supplier audit is the solution to ensure the stability and growth of your business. Conducting a Supplier Audit Questionnaire (SAQ) and regular audits of your suppliers is important to maintain quality and maintain standards.

Conducting a Supplier Audit Questionnaire (SAQ) or, more generally, supplier audits is of utmost importance for an organization that uses or plans to use suppliers. SAQ is also a functionality offered by our procurement software Ensolva and facilitates supplier auditing and compliance with the ESG Directive. Here are some of the main reasons why it is important to conduct SAQ:

1. Ensures quality: SAQ helps ensure that suppliers deliver products and services in accordance with quality standards. This is especially important because poor product or service quality can negatively affect end users and damage a company’s reputation.
2. Reduces the risk: With SAQ, you can easily determine risks and weaknesses and prevent problems such as delays in delivery, disadvantages in quality, non-compliance with regulations etc.
3. Regulates legal compliance: SAQ ensures that suppliers comply with laws and regulations in the industry or market in which they operate, to avoid legal penalties and problems.
4. It contributes to maintaining social and environmental responsibility: In this questionnaire, you can put questions about the supplier’s social and environmental responsibility. This allows you to check whether the supplier complies with standards and practices related to the environment, human rights, ethical standards, etc.
5. It gives suppliers an opportunity to improve: It gives an opportunity to collaborate and talk with suppliers about possible improvements. This can encourage them to improve their business processes and be long-term sustainable partners.
6. It gives an advantage over the competition: Conducting SAQ helps in selecting the best and most reliable suppliers. Cooperation with quality suppliers gives you an advantage over the competition in the market.

In fact, the Supplier Audit Questionnaire is a key tool that helps you ensure high quality standards, reduce risk, comply with regulations, and improve performance and supplier relationships. It is an investment in the safety, reliability and sustainability of the supply chain.

Why is a supplier audit so important for the success of your business?

Faster and better identification of risks and weaknesses of the supplier base

It gives you deeper insight into existing suppliers, their performance and practices. With such a thorough review, you will be able to identify potential risks and weaknesses within your supplier base. You can discover problems such as delivery delays, product quality that does not meet standards, poor communication and lack of transparency in the business. Discovering such problems is crucial in order to be able to adequately address them and to have a stable supplier network. An audit can also reveal vulnerabilities in your supply chain, such as dependence on just a few key suppliers or excessive centralization of procurement. Recognizing these risks allows you to anticipate potential problems and take measures to ensure business continuity even in challenging times.

Contributes to the diversity of the supplier base

Supplier audits prompt you to consider the diversity of your supplier base. Relying on only a few key suppliers can leave you vulnerable to external disruptions, such as market changes, natural disasters, or geopolitical instabilities. Through audits, you will discover new potential suppliers who can offer innovative solutions, competitive prices, or advanced technologies. A diverse supplier base helps reduce risk and ensure reliable supply in all circumstances. Diversifying your supplier base also provides you with greater flexibility to adapt to market and industry changes. If one supplier cannot meet your requirements or offers more competitive terms, you can easily redirect procurement to other suppliers, ensuring seamless business continuity.

Reduces procurement costs

Supplier audits allow you to identify ways to improve the efficiency of your procurement network and reduce costs. By studying offers from various suppliers, you can compare prices and terms to get the best value for your money. Additionally, reviewing delivery processes and communication with suppliers can help you find ways to simplify procedures and reduce transaction time. Through optimizing procurement processes and reducing unnecessary expenses, you can increase the profitability of your company and secure more resources for investing in innovation and business development.

Increases quality and compliance with standards

High-quality suppliers are essential for providing products or services that meet your company’s high standards. Through audits, you can assess the quality and compliance of suppliers with your requirements and norms. If non-compliances or quality deficiencies are discovered, you can take action to rectify the situation or seek alternative suppliers that better align with your standards. Audits also help ensure that suppliers comply with your ethical and social values. As more companies and consumers seek sustainable and socially responsible practices, it is important to ensure that your suppliers share the same values and standards.

Contributes to the creation of a sustainable procurement strategy

Supplier audits help you build a sustainable procurement strategy that will enable you to ensure a reliable supply and the success of your business in the long run. Through clearly defined objectives, supplier base diversification, cost reduction, and increased quality, you create a foundation for stable growth and competitive advantage in the market. Conduct regular supplier audits to ensure that your supplier base aligns with your business needs and goals. With regular audits, your business becomes more flexible, sustainable, and capable of innovation, enabling you to achieve long-term success in a dynamic business environment.

Conducting supplier audits and implementing SAQ is crucial for your business’s success. Risk identification, supplier base diversification, efficiency, increased quality and compliance, and the creation of a sustainable procurement strategy will provide you with stability, innovation, and competitive advantage in your business. Regularly perform supplier audits to ensure that your supplier base aligns with your business needs and goals. Through continuous improvement of your supply chain, you will become a reliable and competitive player in the market, ready to face challenges and achieve long-term success in your business.