Overcoming Supplier Compliance Issues: Lessons Learned

I still remember the moment I opened that audit report and my stomach sank.

It was a routine supplier compliance check or at least it was supposed to be. We had been working with this supplier for over three years, and things had always appeared smooth. Deliveries were prompt, pricing was fair and our internal teams rarely complained.

But the report told a different story.

From missing documentation to non-conformance with key industry standards, the findings were clear: our trusted supplier had been cutting corners. And as the Procurement Lead, I had a decision to make.

How Did We Miss This? This was the first question my team and I asked ourselves. We had regular meetings, monitored KPIs and ran checks but we hadn't dug deep enough into their actual compliance practices.

Looking back, it was easy to see how we got comfortable. Familiarity made us trust without verifying. And in Procurement, that’s a trap.

#1 Lesson: Routine doesn’t replace due diligence: Even long-term vendors need structured compliance checks because consistency on the surface doesn't always mean compliance behind the scenes.

Calling the supplier wasn’t easy. I’ve always believed in treating suppliers as partners, not just vendors, but I also knew we had to draw the line.

I scheduled a virtual meeting and shared the findings calmly. I told them: “This isn’t about ending the relationship. It’s about rebuilding it with stronger foundations.”

Thankfully, they didn’t push back. Instead, they admitted that internal changes had led to lapses. They appreciated our honesty and asked for a chance to fix things.

Over the next few weeks, we worked closely with their team:

✔️ We co-created a compliance improvement roadmap.

✔️ We agreed on monthly check-ins and submission of supporting documentation.

✔️ Their representatives underwent external training on quality and safety standards.

✔️ We sent our quality team for an on-site audit to validate progress.

It wasn’t perfect overnight BUT I saw genuine effort. Within two months, the supplier was back on track and even passed a surprise audit with flying colors.

#2 Lesson: Accountability and partnership can co-exist: You can hold suppliers to high standards without burning bridges. Sometimes, your firm but fair approach is what pushes them to grow.

If you're facing compliance issues with a supplier or worried one might be slipping, remember this: It’s not always about how quickly you cut ties, it’s about how well you manage the process, uphold standards and build systems that prevent recurrence.

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