Auditing reassures organizations regarding financial controls. Audited accounts guarantee you that access to financial documents at the vendor’s desk are tightly controlled. Every company wants its customer data secured; you want to make sure that the vendor is complying with contractual obligations. The need for exhaustive auditing becomes even greater considering the ever evolving quality control market. In the current industry, quality products are no longer a luxury, they are a necessity.
Vendor AuditSo Why would you Need Vendor Audit and Payment Services?
- Vendor audit and payment services are a critical component of ensuring the integrity of the supply chain, this has been the case for many years. But if you look around, you realize that supply chains are evolving, actually outpacing traditional audit program methods. To be effective, these programs need to reevaluate the processes, technologies and even the people involved.
- Medical Device suppliers in particular have always struggled with supplier controls. Indeed, one out every five manufacturers report shortages in this area. This has been a cause for concern for both manufacturers and the suppliers. If the supplier audit program can be improved, the supply chain integrity will be greatly enhanced which in turn helps companies improve their supplier controls. Quality of supplies and supplier relations will also improve. At the end of the day, companies can talk of reduced costs and risks.
- Recent statistics indicate that most companies are continually reporting an increasing global supply chain. Suppliers are no longer at your door step; they may as well be a world away. Auditing from such a distance is not easy. There is cost of travel, cultural differences and language barriers to contend with… minor hiccups but which have an impact on the results of the audit and even the success of follow-up. You can definitely eliminate these problems if you make use of vendor audit and payment services.
- You are quite aware of the need to control supplier numbers. If your suppliers are handful, that doesn’t become a problem. However, as already mentioned, the supplier base is growing. This comes with changes in locations and addresses. If you are handling a few thousand suppliers, the challenge becomes enormous. In some cases companies can’t even quote a fair estimate of their suppliers. A chunk of the audit team’s time is therefore wasted on finding out which suppliers are still active in the supply chain. Having vendor audits and supplier services done for you will allow you to divert these resources to income generating areas of the business.
- The risk posed by a more diverse supply chain is evident. Companies are struggling to cope. Many have tried to increase the number or frequency of audits performed every year and it just doesn’t add up. Even if you increase the duration of the audits with the scope of audit function remaining unchanged, the natural growth and the rate of diversification of the supplier base will easily outpace the resources and structures of most traditional supplier audit programs. To stay on the safe side, you need to work with a reliable vendor audit and payment services provider.
Summary – Vendor Audit
Companies are realizing the importance of vendor audit and payment services. With such services, you get to avoid several possible mistakes such as duplicate billing, overcharges and unwarranted accessorial charges. Every business exists to make a profit. Having the peace of mind and time to work on more important matters knowing well that your vendor audit and payment services are in safe hands can only enhance your bottom line.