🇦🇺Australia

Excessive Testing and Audit Costs

3 verified sources

Definition

Supplier qualification demands documentation reviews, questionnaires, CoA verification, and full testing of initial deliveries. On-site audits may be required, inflating costs until reduced sampling is validated.

Key Findings

  • Financial Impact: AUD 1,000-5,000 per supplier qualification (questionnaires, 3 full tests at AUD 300-1,000 each, audit travel)
  • Frequency: Per new vendor or status downgrade (e.g., on test failure)
  • Root Cause: Lack of digital tools for questionnaire automation, audit tracking, and test data trending

Why This Matters

The Pitch: Packaging firms in Australia spend AUD 10,000-50,000 yearly per critical supplier on mandatory full testing. Automation streamlines qualification to enable reduced sampling sooner.

Affected Stakeholders

Quality Unit, Purchasing, QA Auditor

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Financial Impact

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Current Workarounds

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Methodology & Sources

Data collected via OSINT from regulatory filings, industry audits, and verified case studies.

Evidence Sources:

Related Business Risks

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