The Limitations and Evolving Role of On-site Supplier Audits: 4 Reasons They Are Starting to Miss the Target
This article is the first of a two part series, summarizing key limitations of on-site audits, and the 'gap' in effectiveness that companies have encountered when trying to gain greater visibility over their supply chains via the classic “audit cycle approach”
Over the last 20 years the outsourcing of manufacturing and service operations to countries with inadequate laws, weak enforcement and feeble or non-existent worker protections has created significant need for a system for monitoring and verifying management controls of these suppliers and subcontractors to not only prevent negative social and environmental impacts, but ultimately improve their performance. As companies have tried to gain greater visibility over their supply chains, most have deployed an “audit cycle approach” to enforce supplier compliance with client company policies and expectations. However the empirical evidence overwhelmingly indicates a significant gap exists in making audits a truly effective tool for supply chain risk management….
Click the link to read the entire article https://resources.ecovadis.com/blog-ecovadis-9/the-limitations-and-evolving-role-of-on-site-supplier-audits-4-reasons-they-are-starting-to-miss-the-target-2