What is supplier compliance?
Supplier compliance is the process of ensuring that your suppliers not only comply with local laws and accepted practices, but that more specifically they comply with your companies standards and requirements.
A modern company can have hundreds, even thousands of suppliers all over the world. These suppliers will adhere to their own standards and local laws. In some cases these standards and laws will be sufficient and acceptable. However, in others they will be less exactly than those expected.
In these cases Supplier Compliance allows you to set your own set of standards and expectations, increasing the standards implemented by your supplier. An example of this would be requiring that men and women are paid the same. While no local law may exist to enforce this, Supplier Compliance would stipulate that continued business was dependent on this being implemented.
Best practice suggests that a company should ensure that its suppliers act in a way that is both legal and ethical, sourcing materials in the best manner possible, and treating their workforce well. Supplier compliance is enforced via independent organizations and surprise audits.