Remote Audit as an Important Component in Compliance Management with ISO 37301 (ISO 19600) and for the New Supply Chain Act

Compliance and the related compliance management have long been “trending topics” in the global business world, but only with the new Supply Chain Act do they now become mandatory in the everyday operations of corporate leadership and management. The Supply Chain Act introduces concrete liability obligations and risks that extend beyond the boundaries of one’s own company. Compliance is no longer just an important “marketing factor” for external image or an ethical but largely non-binding self-commitment; it has now become a concrete economic requirement. Because it is no longer enough to monitor processes within one’s own organization, entirely new consequences arise for collaboration and, in particular, the control of subcontractors and suppliers. In the future, companies will be responsible not only for themselves but can also be held accountable for what happens before and after them in the supply chain.

Compliance Management

“Compliance” now encompasses an internationally accepted framework that represents ethically and morally correct business conduct. At the latest with the publication of ISO 37301 (formerly ISO 19600), this framework has been methodically formalized and can therefore be approached using established quality management methods.

Compliance management today is almost entirely computer-supported. Audit, certification, and documentation tasks can only be performed efficiently in digital form. However, high efforts arise in large, primarily internationally operating companies due to necessary travel to business units, suppliers, or distribution partners. Although modern video technologies and document management systems provide partial solutions, they cannot offer continuous, targeted support. These tools are not specialized enough and, as typical end-user programs, do not primarily follow the specific requirements of standards such as ISO 37301 (ISO 19600).

Remote Audit Solutions for Compliance Management

Remote audit has already proven its strengths during the pandemic. During lockdowns and contact restrictions, remote audit software was one of the big winners, helping companies maintain their usual operations—now better digitalized. True remote audit solutions deliberately combine conventional video conferencing with proven methods of collaborative screen work, modern hardware (e.g., smart glasses, portable devices, etc.), and, above all, significantly improved document management.

Advantages of Remote Audit

• Significantly reduced or completely eliminated travel and associated overhead efforts.
• Automation of documentation.
• Use of modern but cost-effective tools (tablet computers, smartphones, portable cameras, etc.).
• Better integration of audit processes with other digitalized processes.
• Easy involvement of external experts.

Disadvantages of Remote Audit

• High initial costs.
• Lack of personal or tactile experience.
• Scheduling across different time zones is necessary (e.g., conflicts with core working hours).
• Requires a well-developed and reliable technical infrastructure.
• Due to the absence of personal presence, one must familiarize oneself—at least theoretically—with cultural, ethical, or legal conditions. On-site work cannot be directly “experienced.”

Among the advantages of remote audit for compliance, two points are particularly important: reduced travel and automated documentation. Audits can take place across company boundaries more spontaneously and with less notice than would be possible during in-person visits. Time requirements can be significantly shortened. On the other hand, the “personal impression” plays a smaller role; one only sees what is shown or electronically accessible. The authenticity of non-digital documents cannot be physically or visually verified. One relies on the information provided by the technology.

Remote audits in compliance management can therefore be useful tools but still require a solid trust relationship between the parties. The use of smart glasses and wearable data devices can provide further benefits. From a cost perspective, the greater the distribution of the value chain and the more complex the processes involved, the faster the often high initial investments can pay off.

iVision® Remote Audit Software

With our award-winning iVision® software, PeRoBa GmbH Munich offers a powerful and flexible platform for all use cases of remote auditing. In addition to audits from classical quality management, iVision® is particularly suitable for the partially new requirements of cross-company and cross-border compliance management. The software is characterized by excellent scalability and expandability and excels in manufacturer-independent support of modern smart glasses.

iVision® is thus today one of the most innovative and flexible audit software solutions on the market. We are happy to provide detailed information on how iVision® Remote Audit can make your compliance management more effective and efficient while reducing long-term efforts.