Do you know how to audit a third party in the supply chain?

Mónica Ramírez Chimal (mramirez@asserto.com.mx) is Partner and Founder of her own consulting firm, Asserto RSC, in Mexico City, Mexico.

Great! Your business is expanding, and with that you need more suppliers, vendors, agents, and distributors in different cities — some even in other countries. You get the contract signed, and everything moves according to it…until certain news changes everything. A supplier is using people who entered the country illegally, students, or minors, or they are not complying with the labor, health, and security requirements needed to operate.

You can think, “Well, that is their problem. I have hired them to perform certain activities, so it is not my problem who or what they use to do it.” Wrong! This is your problem, and it could cost you a lot, from damage to your company’s image and reputation to loss of sales, fines, compliance and legal issues, etc.

So how can you prevent this situation?

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