HomeBusinessThe Benefits of Auditing Within Supplier Sourcing Techniques
The Benefits of Auditing Within Supplier Sourcing Techniques
October 22, 2018
When you are running a successful business it is because of the best quality of raw materials and supplies that your suppliers provide you. However, it is not advisable to trust suppliers without quality checking their raw material and accepting their supplies in the same way. The evaluation of the supplier or provider must be done before finalizing a provider or supplier and even over the years while working with them. Auditing your quality standards, the systems you use, the practices you follow, the procedures that follow are very crucial and only then will your company obtain the goodwill it requires.
The seller’s evaluation of the suppliers that are crucial to your business should be done at least once a year. It causes harm when evaluating the facilities where they manufacture the products your company uses. The evaluation or audit of a supplier goes hand in hand with a site audit. You need to audit the location of the supplier and its products and the manufacturing unit in order to maintain the quality of its products. The type of audits and how many times it should be done depends on the provider and the type of services offered. Also, how crucial is that seller and its products to your business.
The areas that must be covered when performing supplier audits are the evaluation of short shipments, technical support, and billing from the supplier. Directed deliveries should also be evaluated to maintain quality standards intact. Most of the time, the nature of audits revolves around two main things. First, the fact that your supplier protects the environment when you manufacture products and, secondly, how good is the tools & equipment you use to manufacture the products.
For suppliers, audits are a necessary evil that is a trade requirement. Without a successful audit, it is unlikely that you will be selected and included in the provider group. Audits can vary, in some cases be very mechanical, a mere matter of compliance with the requirements of the company. For others, it is more than just a review, it represents an effective feedback process that is based on a robust analysis of key systems and processes. It is equally important for suppliers as it is for buyers.
The supplier’s audit creates a perception. Independent opinions about the company and the operations of the suppliers can highlight the deficiencies that could affect its supply capacity. Buyers take the results of the audit seriously, as they must assess the risks as part of the supplier selection process and require the appropriate information to make that judgment.
The supplier should see this audit process as something that will calibrate their supply opportunity. This, in turn, provides them with information about the markets’ perception of their capacity and offers the potential to market their products to a more meaningful customer base if they can understand the buyer’s requirements and translate them into commercial processes and systems.
The auditors are there to identify problems or concerns. Corrective actions in these matters are the role of the provider and not the auditor. Sometimes they can make recommendations on how to approach the problem; however, this should be reviewed in such a way that it is perceived as a suggestion rather than a criticism.
A good quality control services should not only be an expert in the actual audit process, but also someone who has a good understanding of the full picture that covers key issues and highlights the risk. The audit should be communicated in such a way that the community that is not equipped with the relevant technical knowledge can still understand the findings of the report.
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