1. Introduction

• A vendor audit is a vehicle used by companies to inspect and evaluate a vendor’s quality management system, as well as its practices, products, and documentation.
• LegAccord uses effective process and technology to audit and review the compliance status of the vendors and highlights the gaps and risk by way of audit reports.
• LegAccord also helps our clients in closing all compliance gaps within due time and thereby eliminating the risk of non-compliance.

2. Coverage of activities

• Review of vendor performance.
• Compliance program review w.r.t. coverage, applicability and correctness
• GAP Reporting of missing compliances.
• Verification of documents uploaded in the tool.
• Periodic monitoring and reporting of compliance status of vendors across location.

3. What is evaluated by Legaccord?

• Vendor viability
• Data integrity
• Management responsibility
• System accuracy

4. Benefits of Vendor Audit

• Adopt Organizational Quality Standards.
• Improve Customer Satisfaction.
• Ensure compliance with policies and regulations.
• Identify Areas of Potential Risk.
• Process improvement.

5. METHODOLOGY

• Communication to Management: Ensuring clear and effective communication with management throughout the audit process.
• System's Risk Assessment: Identifying and assessing potential risks within the system to pinpoint vulnerabilities.
• Vendor Overcharge Investigation: Investigating the likelihood and extent of vendor overcharges to mitigate financial discrepancies.

6. Why it is important to outsource your vendor audit services?

Outsourcing your vendor audit services can significantly enhance your business operations by addressing the following challenges:

• Inconsistent Audit Mechanisms: There is often no standard and consistent process to audit and measure vendors' maturity levels, leading to varied and unreliable results.
• Limited Resources: Businesses frequently lack the bandwidth to conduct thorough audits and identify issues upfront, potentially allowing problems to escalate unnoticed.
• Skill Shortage: Many organizations face a shortage of skilled personnel needed to perform comprehensive vendor audits.
• Manual Processes: Vendor audit processes are often manual and time-consuming, resulting in high cycle times and inefficiencies.
• Limited Automation: There is typically little to no automation in place to continuously monitor vendor compliance issues, which can lead to oversight and non-compliance.
• Lack of Benchmarking: Without proper benchmarking, it is challenging to track improvements and ensure that vendors meet evolving standards over time.