header

Connect With US

joomla vector social icons

Supplier Sustainablity

If you are in a sustainability department, supply chain management or procurement, you’ve probably seen it happen: when asked to pass a sustainability audit, some suppliers do whatever they can to stall the process, often delaying the audit for a couple of months or even avoiding it altogether. With a few simple measures, you can greatly improve the success of your audit program.

As a provider of sustainability audits, we observe it all the time: Companies design a responsible sourcing program, code of conduct and audit program for their supply chain, but find that the planning of the audits takes forever. Some suppliers flat out refuse to have another sustainability audit, some go silent hoping the request will go away, whereas others request a postponement.

If those symptoms sound familiar, it is because the problem is a familiar one as well: audit fatigue. Despite all initiatives towards common supplier standards, the audit pressure on suppliers has never been higher than it is today.

How can we do better?

The issue of audit fatigue is something to be aware of when setting up a responsible sourcing program for your supply chain. With a few relatively simple measures, you can improve the effectiveness of the audit program and reduce the strain on your suppliers.

Supplier Sustainablity Chart

Measure #1: Refer to existing standards in your Supplier Code of Conduct

99 % of all supplier codes of conduct are exactly the same. This means there is no need to reinvent the wheel: it is very likely that standards and initiatives such as Sedex SMETASA 8000 and BSCI already cover the requirements outlined in the code of conduct of your company. Instead of developing a custom-made audit program based on your code of conduct, we recommend looking at existing standards: they bundle years of best auditing practices.

If you have any particular requirements that go beyond existing standards, you can add these to the audit protocol.

Measure #2: Consider what your suppliers have already achieved

Before requesting your suppliers to pass an audit, consider what they already have: it is unlikely that you are the first client to request a sustainability audit. If a supplier already has a valid certificate or audit report from a trusted third party, is it necessary to audit the same aspects again? Compare your supplier code of conduct to existing standards and only audit those aspects that have not been sufficiently assessed yet.

Measure #3: Consider a risk-based approach

Instead of deploying a supply chain-wide audit requirement, balance the risk and the level of assurance you require. Several providers provide risk assessment tools that can help you determine auditing priorities. These tools typically distinguish:

  • inherent risk for regions and industry sectors (economic situation, wage structure, worker population, …)
  • particular risk levels of individual suppliers, e.g. based on previous audit findings and questionnaires

Measure #4: Focus on improvement

If suppliers are reluctant to have a sustainability audit, it may be because they worry about the consequences of a bad audit result. To allay these fears, offer support and guidance to suppliers – both for the preparation as well as for the follow-up. Avoid a “pass or fail”-approach, but rather help suppliers improve their sustainability performance.

Measure #5: Reward good performance with Business

Many companies have implemented an award scheme for their supply chain: winning the award gives the supplier something to be proud of. However, what matters more than a trophy is the bottom line: if suppliers with an excellent sustainability performance get a return on investment from you in the form of additional sales, they will need no further motivation to continue improving.

The above article sourcing from DQS CFS website (https://dqs-cfs.com/2018/06/supplier-sustainability-audits-how-to-alleviate-the-burden-for-suppliers/). For more information, please send email to This email address is being protected from spambots. You need JavaScript enabled to view it.

Share this post

Submit to DeliciousSubmit to DiggSubmit to FacebookSubmit to Google PlusSubmit to StumbleuponSubmit to TechnoratiSubmit to TwitterSubmit to LinkedIn

NEWS

Coming Soon: The ISO 24526 Certification Standard for Water efficiency Management Systems

Coming Soon: The ISO 24526 Certification Standard for Water efficiency Management Systems by Li Rayanna    Water – it may well be the most underrated resource in the world. Whereas many companies have implemented management systems to improve energy-efficiency, it is far less common to see effective water management systems. The new standard ISO 24526 for water-efficiency management systems addresses this void and will help organizations to increase efficiency, save costs and protect the envi

15-01-2019
- by dqsindonesia
Read more »
McDonald’s approves DQS CFS as globally recognized third-party auditing firm

McDonald’s approves DQS CFS as globally recognized third-party auditing firm by Li Rayanna      We are pleased to announce that McDonald's approved DQS CFS as a globally recognized third party auditing firm for SQMS (Supplier Quality Management System) audits. McDonald's is the leader in the fast food industry in Germany and one of the most famous brands worldwide. In this position food safety is a main topic. To verify a supplier's compliance with McDonald's SQMS there are three acceptabl

15-01-2019
- by dqsindonesia
Read more »
Associate Professional Management System Auditors

Associate Professional Management System Auditors We are looking for associate Professional Management System Auditors to join our team. Candidates are required to have the following qualifications : S1 degree from reputable university majoring in among others Engineering / Science /  Occupational Health and Safety (K3). Professional experience (full time) of at least 5 (five) years in the relevant activities related to quality/ environment/ safety management or related to the following

29-11-2018
- by dqsindonesia
Read more »
SOCIAL AUDITS: WHY WE ARE EXCITED ABOUT THE SUSTAINABLE SUPPLY CHAIN INITIATIVE

SOCIAL AUDITS: WHY WE ARE EXCITED ABOUT THE SUSTAINABLE SUPPLY CHAIN INITIATIVE In recent years, we have seen a proliferation of social standards. Many industries and associations have developed customized standards to match the particularities of their sector.  The downside of this development is that suppliers often have to pass multiple audits, which are all very similar. The Sustainable Supply Chain Initiative, to be launched later this year, sets out to improve recognition of social au

27-11-2018
- by dqsindonesia
Read more »
The first IATF 16949 certificate in Algeria goes to SAPPL Mercedes-Benz SPA

The first IATF 16949 certificate in Algeria goes to SAPPL Mercedes-Benz SPA (by Li Rayanna, DQS CFS) 508 trucks is not the kind of delivery even the Algerian army receives every day, and this time, the recent certification to IATF 16949 was one more reason for celebration. SAPPL Mercedes Benz SPA is the first company to be certified to this very demanding automotive industry standard in Algeria. DQS was therefore proud to be represented by both the Managing Director of DQS Maghreb Sarl., Mr. T

26-11-2018
- by dqsindonesia
Read more »
DQS CFS now collaborates with United Nations World Food Programme

DQS CFS now collaborates with United Nations World Food Programme (by Li Rayanna, DQS CFS)    We are happy to announce that DQS CFS just established a Long-Term Agreement with the UN's World Food Programme. World Food Programme (WFP) is the world's largest humanitarian organization commited to end hunger, achieve food security and improved nutrition. Just in 2017 WFP purchased more than 2.9 million MT of food from more than 600 suppliers originating in 115 countries. Their action in food ass

26-11-2018
- by dqsindonesia
Read more »
APSCA PROGRESS UPDATE – ENSURING THE PROFESSIONALISM OF SOCIAL AUDITS

APSCA PROGRESS UPDATE – ENSURING THE PROFESSIONALISM OF SOCIAL AUDITS In the summer of 2016, we announced that DQS CFS had joined APSCA, an initiative to ensure the professionalism of social compliance auditors. In this article, we would like to provide you with an update on the progress that has been made, as well as the implications for suppliers, buyers and auditors. What is APSCA? APSCA (Association of Professional Social Compliance Auditors) is an organisation created to increase

06-11-2018
- by dqsindonesia
Read more »
Updates to Standards – Quarter 3

Updates to Standards – Quarter 3 The Quarter 3 issue of Updates to Standards includes information on the following: ISO 50001:2018 Revision SQF Fundamentals BRC Revision ISO 22000:2018 Revision Other DQS Services The above article sourcing from DQS US website (https://dqsus.com/wp-content/uploads/2018/10/Updates-to-Standards-Q3.pdf). For more information, please send email to info@dqsindonesia.com  

31-10-2018
- by dqsindonesia
Read more »
A CULTURE OF FOOD SAFETY: GLOBAL FOOD SAFETY INITIATIVE

A CULTURE OF FOOD SAFETY: GLOBAL FOOD SAFETY INITIATIVE PUBLISHES POSITION PAPER     After 18 months of work, the Global Food Safety Initiative (GFSI) has published its new position paper on a food safety culture. How does it contribute to global food safety? Whether a company manages to ensure the long-term quality and safety of its products depends to a large extent on the corporate culture and the value system within the organization. However, because topics such as corporate cultur

11-10-2018
- by dqsindonesia
Read more »
Energy Management: Revised ISO 50001:2018 has been published

On August 20, 2018 the International Organization for Standardization (ISO) has published ISO 50001:2018, the revised management system standard for energy management. The transition period for existing certificates was confirmed to be three years from the publication date.   DQS, like all other certification bodies is required to stop conducting audits according to the "old" ISO 50001:2011 after February 20, 2020 (18 months after the publication date). This means that certified organizations w

26-09-2018
- by dqsindonesia
Read more »
ISO 37001 – DQS CFS successfully completes Accreditation Audit

Since its publication two years ago, ISO 37001, the international standard for anti-bribery management systems, has quickly established itself as a crucial tool to combat bribery-related risks. In order to ensure the lasting credibility of ISO 37001 certificates issued by DQS, we have made it a priority to apply for accreditation. We are pleased to announce that DQS is one of the first certification bodies in the world to have passed the accreditation audit. When we announced in April 2018 t

26-09-2018
- by dqsindonesia
Read more »
SUPPLIER SUSTAINABILITY AUDITS: HOW TO ALLEVIATE THE BURDEN FOR SUPPLIERS

If you are in a sustainability department, supply chain management or procurement, you’ve probably seen it happen: when asked to pass a sustainability audit, some suppliers do whatever they can to stall the process, often delaying the audit for a couple of months or even avoiding it altogether. With a few simple measures, you can greatly improve the success of your audit program. As a provider of sustainability audits, we observe it all the time: Companies design a responsible sourcing progra

24-08-2018
- by dqsindonesia
Read more »

PT. DQS CERTIFICATION INDONESIA

JL. Margasatwa 4, Unit A. Cilandak Timur, Pasar Minggu, Jakarta Selatan 12560 Indonesia

Tel: (62-21) 22780821 (62-21) 22780823 (62-21) 22780343 Fax: (62-21) 22780837

Email: info@dqsindonesia.com

2018 ©Hani Bahanan-DQS Indonesia All rights reserved.