If you’re searching for a new contractor in your supply chain, you know reliability and performance are mandatory. Some businesses will hire an auditor to determine whether a contractor fits the bill. In addition to providing clients the data necessary to make an informed decision, these audits can be a great way for contractors to see where they have room for improvement. Here are three main considerations to take into account when choosing this new contractor:
- Regulatory compliance: Has the company been cited by the EPA or OSHA? Are there any ongoing investigations? Whether a company has been deliberately cutting corners or are actually unaware of certain regulatory requirements, an audit can inform you about their activity, as well as give them the opportunity to correct these issues.
- Performance: If there have been accidents reported by the company, an auditor will try to dig deeper and look at root causes. Is there a pattern? What was done to correct the underlying factors?
- Management engagement: How involved is management on a day-to-day basis? Are they approachable? Do workers feel comfortable coming to them with concerns and safety issues? Auditors can talk with the company’s human resources department, review training manuals, and interview employees to get an idea of the level of management engagement.
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