business Supply Chain Risk Management: Tips for Manufacturers April 10, 2023 Looking for better ways to manage costly risks in your organization? A SOC for supply chain management can help. We have the details here. As we covered in our blog, AICPA Releases SOC for Supply Chain Management, in 2020, the American Institute of CPAs debuted SOC for Supply Chain to mediate risks companies were dealing with as a result of the COVID-19 pandemic. Its benefits are still relevant for businesses in 2023. Have you performed a SOC for supply chain assessment yet? How can this reporting framework help your business? Read on. SOC for Supply Chain SOC (system and organization controls) for supply chain is a risk management reporting framework that CPAs can use to provide assurance services to manufacturers, producers, and distribution companies as they face risks in their supply chain due to various threats. Because today’s supply chains are highly sophisticated and complex, they often depend on each other, which increases risk. Through a SOC for supply chain report, companies can access information that will give them more assurance around issues that could be holding up their supply chain. What does the report provide exactly? The report can provide: An opinion on the organization’s description of the system it uses to manufacture, produce or distribute productsAn opinion on the effectiveness of the controls within that system. What are the benefits? Beyond quality assurance and security, SOC for supply chain can help you: Lessen your administrative burden- With a SOC for supply chain report, you eliminate the need to respond to individual vendors or customers about your safeguards and systems. The SOC for supply chain has all the information they need. Maintain production standards- The SOC for supply chain report can help you honor your commitments when it comes to contractual obligations and customer privacy expectations. Focus your attention on core business practices. With less vendor and customer inquiries, you have more time and resources to develop your business. Gain a competitive advantage- When customers known you have a SOC for supply chain report, they can rest assured that you have the right processes and controls in place to protect supply chain activities. Think a SOC for Supply Chain engagement is right for your business? We can help.
