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Glossary · Supply Chain

Supplier Audit Program

Systematic process for evaluating suppliers' operations, controls, and compliance through on-site or remote audits against defined criteria.

Full definition
Supplier audit programs verify that vendors meet contractual obligations, quality standards, regulatory requirements, and ethical practices. Audits may cover financial health, operational capabilities, cybersecurity controls, labor practices, or environmental compliance. Frequency and depth are risk-based, with critical suppliers receiving annual comprehensive audits. Corrective action plans address identified gaps with follow-up verification. An electronics manufacturer's supplier audit discovered child labor violations at a component supplier's subcontractor facility, triggering immediate contract suspension and requiring third-party remediation verification before reinstatement.
Supply Chainauditcompliancevendor management

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