In relation to ethics, why is it important to routinely evaluate suppliers?

Evaluating suppliers routinely is vital for ensuring best pricing and compliance with standards. This practice allows organizations to assess not only the cost-effectiveness of the contracts and services provided by suppliers but also their adherence to ethical standards, quality requirements, and regulatory compliance. Regular evaluations help maintain a competitive environment where suppliers are incentivized to offer the best prices and quality, ensuring that the organization receives the most value for its expenditures. Additionally, by keeping assessments current, procurement teams can identify any potential issues with compliance that could lead to legal or operational problems later on. This ongoing diligence strengthens supplier relationships and mitigates risks associated with procurement practices.