5 Tips For Effective Supplier Audits

5 Tips For Effective Supplier Audits

You rely on your suppliers to deliver goods and services to sustain and keep your customers happy. Their business practices have a direct impact on your organization. Auditing suppliers is a necessary part of quality management. It makes no difference what business you are in. Auditing your suppliers is important to the stability and profitability of your company.

Here are a few helpful tips to get you prepared and help you achieve a purposeful and quality driven audit.

  1. Make contact with your supplier – a good place to start is by scheduling a time to conduct your audit. It will be wise to pay attention to the response you receive.  Were they receptive to you conducting an audit?  Be considerate by taking your supplier’s time into consideration and schedule an audit time that is suitable to both of you.
  2. Take time to develop and plan your audit-review the quality history of your supplier and taper your audit plan around your reason for performing an audit.  Spend time auditing areas that did not meet your expectation.
  3. Collaborate with your accounting department – review pricing contracts along with existing supplier’s invoices to verify that you are being charged according to the contract agreed upon.  Prepare before you start your audit.  Look for things like unexplained miscellaneous charges and inaccurate shipping and transportation fees.
  4. Take notes – spend time taking accurate notes on your observation. Add as much detail as necessary to your notes so that you are able to properly address issues. You notes will serve you well when you are ready to write your report.
  5. Write your report –ensure that you include any recommendations and support them with proof – example: if you are recommending new equipment then document what you observed while you were performing the audit. Provide the supplier with your evaluation and take time to discuss any concerns the supplier may have with your findings and recommendations.

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