How To Conduct A Supplier Audit Effectively

Auditing is the key to recognizing the true potential of an individual. Nowadays, every organization has an audit functional area that keeps a keen watch on each professional directly related to the enhancement of a business. The entire theory of procurement revolves around suppliers. Without suppliers, the process of procurement simply remains blind. Since your suppliers are responsible for providing necessary goods and services, you must audit their performance and quality of work. Typically, critical suppliers are audited annually while poor quality suppliers undergo frequent auditing sessions. Here, the presence of a supplier auditor is extremely important for running and managing the overall audit smoothly and effectively. You can then ideally identify, eliminate, and prevent quality issues with the products or services your supplier is providing.

Reviewing Before You Go

Review every single thing before you proceed with auditing. The review should be done on the expectations and responsibilities of both parties as already laid out in the quality agreement. You can also include past audit reports, current product specifications, the importance of the product, company history with the supplier's product, whether the product has ever failed, alternative manufacturers qualified, and interviews with in-house personnel both about the product and the supplier. If a supplier auditor here takes the entire responsibility without the involvement of any other professional, both the review and audit process would run efficiently.

Considering The Digital Footprint

Taking account of the active and passive digital footprint of a supplier is very essential. The footprint must include social media channels and online reviews. The digital footprint lets you know the exact image of a supplier you are looking forward to dealing with. Through their social media profiles and websites, you can know what kinds of customer and product reviews they offer, what both past and present customers say about the company and its offerings, and if the company and its products have been reviewed and rated by CNET or Consumer Reports.

Not Underestimating Customer Complaints

Customer complaints are important but should never be taken for granted. During an audit, you must ask to see the customer complaints on products you are currently buying from your supplier. Customer complaints can always act as an important source of information but depending fully on them is simply not good for your business. The complaints can help you identify the performance and quality of products under perfect usage. Thus, you must always have faith in customer complaints and accordingly reduce the shipment of nonconforming items. A supplier auditor here can help you find the best complaints about the betterment of your business.

Staying Vigilant And On Track

Asking the right, effective questions is considered one of the major components of an audit. The auditor should also not be afraid of asking weird or uncomfortable questions. At that time, the supplier should feel that you are there to help identify processes, training, or documentation issues affecting their metrics despite the uncomfortable observations or questions. You must stay vigilant and on track for getting clear answers from the suppliers.

Every audit consists of different types of stages. Such stages usually make an audit complicated or hard to understand. But, at the same time, it will perfectly examine the quality and performance of a supplier. But you simply cannot assign any professional for conducting a great supplier audit. Rather, you will only require a supplier auditor to run and manage the whole of the audit effectively and smoothly.