Abstract

Supplier audits are important steps in reducing risk for an organization, but without the right procedures, mistakes or failure can occur. Occasionally, these failures occur on a massive level, such as the 2016 Toyota recall for faulty airbags or the 2016 Samsung Galaxy Note 7 recalls for exploding batteries. Proper supply chain management practices will increase the chances of positive supplier audits. Five common and important steps in supply chain management include planning, sourcing materials, making the products, delivering the products to customers and also ensuring the process of returning products is optimized.