Supply Chain Compliance

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While it takes many years and decades of hard work and sacrifices to build a great product or prestigious brand, destroying it can happen in a matter of minutes due to the power of social media and globalisation. Product quality and a great brand often go hand-in-hand with compliance. Supply chain compliance refers to organizational adherence to established guidelines and requirements and its ability to meet or exceed the expectations of its stakeholders with regard to sourcing, manufacturing and delivery of products. Supplier compliance with quality, environmental, labour, health and safety standards is a growing concern across the world. According to a recent Aberdeen study, 45% of supply chain executives say that they are experiencing increased pressure for regulatory and quality compliance as well as internal compliance to contracts. Which is why organisations are under increasing pressure to ensure that their suppliers comply with minimum standards.
In order to understand the importance of supply chain compliance, organisations need to take cognizance of the following:

• When requirements are not monitored and adhered to, disruptions to the supply chain can occur and cause negative impacts to the organization’s bottom line and reputation;
• Health hazards and deaths can occur when suppliers do not comply with health, safety and environmental requirements;
• Structures and buildings can collapse and cause injuries and deaths when quality requirements are not adhered to; and
• Structures and buildings can collapse and cause injuries and deaths when quality requirements are not adhered to; and
• Customers and regulators can demand that you provide them with evidence to show the origins and composition of your products, (e.g. ingredients, substances, materials, or chemicals), as well as your suppliers’ and sub-suppliers’ compliance with human rights and bilateral/multilateral trade agreements.

In sum, organisations who do not enforce compliance at every level of their supply chain face many risks, including the following:

Apart from ensuring compliance at every level of their supply chain, organisations also need to ensure that compliance documents are stored and managed in one central location that can be accessed by a cross- function team. This can overwhelm organisations and their supply chain systems. However, this is where Chipise comes in. We assist and support organisations in achieving compliance at every level of their supply chain.