Top 8 dos and don’ts in conducting a successful supplier audit

Author: Betty Lane
1. Fix a Time
The first step to conduct a supplier audit is to contact the supplier and a fix a time to carry out the audit. Always try to conduct the audit at a time convenient for both the parties. Be attentive to the response of the supplier especially whether they are open to you on conducting an audit.
2. Be Punctual
Never be late to arrive at the supplier's facility. Take into account the time schedule of your supplier. Rescheduling and late arrival shows unprofessionalism.
3. Form a Plan
Always develop a plan for auditing and do a thorough review of the quality history of the supplier. Audit plan must be based on the reason for instance if you are facing some problems regarding the production, then more time should be allocated in auditing the production area.
4. Keen Observation
Pay keen attention to the parking area and the front office area and judge whether they are well maintained. Observe the way you are greeted because such small elements reflect the Supplier’s management team’s principles.
5. Pay Attention
Pay attention to each and every small issue. Check for any defects in equipment or safety issues. Make a note of the number of temporary and permanent workers. Audit the supplier’s policies on shipping and watch out the production and assembly processes. Take a note of the manager’s attitude when you are performing the audit.
6. Verify the business terms
Verification of the terms of business of any new supplier is a must. After using a new supplier for a few months, you should a couple of months of using a new supplier, you should analyze a few of the supplier's invoices and the business contracts to verify if the terms match. If you stumble upon a discrepancy that proves that you were being overly charged, you should call up the supplier to request a refund.
7. Compare the Invoices
Compare invoices and pricing contracts of existing suppliers and make sure that the supplier is charging you right. Check for any divergence in pricing, such as incorrect prices. Work in partnership with the accounts payable department to find out the occurrence of any discrepancy in supplier invoices, such as unexplained charges and improper shipping and transportation fees.
8. Good Documentation
A good documentation of all your observations will help you write a good review and present to the management. All as much notes as possible to your documentation so that you will be able to address them effectively. Include all suggestions in your evaluation supporting each observation with evidence.

Please submit the form

what would you like to do?