How To Audit Your Supply Chain

A supply chain is a non-linear process of producing a product.

The non-linear nature of a supply chain makes it very challenging to fully comprehend the complete nature of each individual transaction throughout, and the process as a whole.

In this article we aim to give you insights and some practical ideas you can use to conduct an audit of your own supply chain.

Seeing The Whole Supply Chain

To audit your supply chain is to take an investigative approach and tracing the process of creating your product all the way back to its origin.

This is extremely difficult, especially because a large portion of supply tends to lead back to 3rd world countries, where transparency is often grossly lacking.

The non-linear nature of this process can also make this quite complex.

For instance, if you are a producer of "organic orange juice" and you want to audit your supply chain, the first step you would want to take in the process is looking at where the fruit gets processed and bottled to make sure that the process they use meets the standards for "organic" labeling in the country where you sell your product. You would need to review the entire process of how they produce and bottle the end product, including storing processes, cleaning of equipment, etc.

Next, you would need to review the process of how the fruit is transported to the bottling facility to make sure the fruit is not excessively exposed to chemicals, etc. depending on the distance the fruit has to travel to arrive at the bottling facility, you may need to check storage facilities and other modes of transport (sea freight, etc.) to ensure that the fruit, once again, isn't being exposed to chemicals that could render it as non-organic.

Lastly you would arrive at the farm where the fruit is grown. At this point you may need to take several soil tests as well as review the history of the farm to ensure that it meets the organic-labeling requirements

These are just some of the steps that are needed to be taken. There are more, and they become very nuanced depending on the industry/business.

Summary

Hope this has been helpful. If you have any questions, please don't hesitate to get in contact.