WHY HEALTH & SAFETY NEEDS TO BE AT THE HEART OF SUPPLIER SELECTION

Procurement decisions extend far beyond cost and efficiency. With increased regulatory scrutiny and rising stakeholder expectations, suppliers’ adherence to Occupational Health and Safety (OHS) standards has become crucial. Businesses must ensure that every link in their supply chain meets legal obligations to protect workers, maintain operational continuity, and safeguard brand reputation.

The Risks of Non-Compliance

• Legal Exposure: Companies can be held liable for incidents involving non-compliant suppliers.

• Reputation Damage: Stakeholders, investors, and clients increasingly demand transparent and ethical supply chains.

• Operational Disruption: Unsafe suppliers can lead to workplace accidents, production delays, or halted services.

Integrating OHS into Procurement

1. Supplier Audits: Conduct regular OHS audits to evaluate supplier compliance before contracts are signed.

2. Risk Assessment: Identify suppliers whose non-compliance poses operational, legal, or reputational risks.

3. Supplier Development Programs: Support suppliers in implementing robust OHS measures through training and advisory services.

4. Policy Integration: Embed OHS requirements into procurement policies, contracts, and performance evaluations.

5. Monitoring & Reporting: Track supplier performance and corrective actions to ensure ongoing compliance.

Embedding OHS into procurement safeguards employees, clients, and the broader business ecosystem. By prioritizing health and safety, businesses reduce risk, enhance resilience, and demonstrate responsible leadership in supply chain management. Compliance Hub provides the expertise to help organizations achieve this seamlessly.