How to Conduct a Quality Supplier Audit – Key Steps

Quality Supplier Audits are like quality checkups for businesses. They’re super important because they ensure that products are top-notch and the supply system is strong. This blog is here to help you learn how to do your own supplier audits. Think of audits as detectives—they inspect how things are done to ensure they’re done correctly. Our goal? To give you the knowledge and steps you need to be a pro at these audits. With this know-how, you’ll build a strong, reliable supply chain that sets you up for success. 

1. Pre-Audit Preparation:

Pre-audit preparation involves meticulous planning, defining objectives, assembling the right team, crafting detailed checklists, reviewing documentation, and engaging suppliers before the audit. It’s vital because it lays the groundwork for a successful audit. This phase clarifies the audit’s scope, ensures readiness, identifies potential risks, aligns expectations, and establishes communication, enabling a focused and effective audit process that verifies adherence to standards and enhances overall quality control. Before embarking on a Supplier Quality Audit, it requires pre-planning and execution.

Here’s your comprehensive guide to navigating through each crucial step in pre-audit preparation:

Defining the Scope and Objectives

First things first – set the stage. Define what areas will fall under scrutiny during the audit. Establishing clear objectives is paramo, whether it’s the production processes, quality control measures, or social compliance standards.

Selecting the Audit Team

Assemble your dream team. Consider expertise, experience, and familiarity with both the supplier and the industry. Decide whether internal or external auditors are better suited for the task.

Preparing the Audit Checklist and Plan

The blueprint to success lies in meticulous planning. Craft a detailed checklist encompassing pertinent questions and procedures aligned with your defined scope and objectives. Remember to cover all bases, from document reviews to insightful interviews and physical observations.

Reviewing Supplier Documentation and Records

Time to dig into the paperwork. Acquire quality manuals, certifications, reports – the works. Scan these documents for any inconsistencies or potential red flags that might warrant a closer inspection.

Conducting a Pre-Audit Meeting

Communication is key. Before diving into the audit, hold a meeting with the supplier. Lay out the scope, objectives, and what’s expected. This is the time to address any queries or concerns they might have, fostering a collaborative and transparent environment.

2. How to conduct a supplier audit?

To conduct a supplier audit, begin by defining objectives and criteria. Collect relevant documentation, including contracts and quality standards. Plan an audit schedule and select a qualified team. Conduct on-site visits, review records, and interview personnel. Evaluate compliance, quality control, and communication. Document findings, provide feedback, and collaborate on corrective actions for improvement. Finally, follow up to ensure implementation of agreed-upon changes for enhanced supplier performance.

Supplier audit involves several key steps to ensure thorough evaluation and compliance. 

Here are the steps to follow to approach this auditing;

Opening Meeting:

The following steps must be involved in opening the meeting

• Purpose Reiteration: Clearly state the goals of the audit, emphasizing quality, compliance, and partnership improvement.
• Introduction of Team: Introduce audit team members and their roles.
• Establish Ground Rules: Outline expectations, confidentiality agreements, and the audit schedule.
• Communication Clarification: Specify channels for queries and reporting during the audit process.

Factory Tour:

Factory tours must involve these steps:

• Observation of Processes: Inspect production areas, noting machinery, workflow, and quality checkpoints.
• Verification against Procedures: Compare observed practices with documented protocols and industry standards.
• Safety and Environment Check: Identify any potential safety hazards or environmental risks within the facility.

Employee Data Gathering (if applicable):

Gather the data of employees if applicable, by using any strategies given below:

• Interviews or Surveys: Conduct interviews or surveys with employees to assess working conditions, training adequacy, and compensation satisfaction.
• Compliance Review: Ensure adherence to labor laws, ethical practices, and standards for employee treatment.

Document Review:

Document review must be carried out by following these steps:

• Record Scrutiny: Thoroughly examine supplier records for accuracy, completeness, and traceability.
• Data Verification: Cross-reference documented data with observed practices and findings from employee interviews or surveys.

Closing Meeting:

The closing meeting must involve the following considerations:

• Key Observation Summary: Recap major observations, noting strengths and areas needing improvement.
• Preliminary Findings: Present initial audit findings, highlighting commendable practices and potential areas of concern.
• Opportunity for Clarification: Offer the supplier a chance to address or clarify any issues raised during the audit.

3. Post-Audit Activities:

Post-audit activities in quality supplier audits involve compiling audit reports, sharing findings, and implementing corrective actions. They’re crucial to drive improvements, ensure compliance, and strengthen supplier relationships. These activities facilitate transparency, accountability, and continuous enhancement of quality, processes, and standards, fostering long-term business sustainability.

Here’s a breakdown of how to perform post-audit activities following the outlined process:

Analyze and Evaluate Findings:

Here is how you can analyze and  evaluate findings:

• Identify Non-Conformances: Highlight discrepancies between observed practices and documented standards.
• Assess Risks and Improvement Areas: Identify potential risks, weaknesses, and opportunities for enhancement.
• Evaluate Quality Management System: Review the overall effectiveness of the supplier’s quality management system against industry benchmarks.

Develop and Communicate a Corrective Action Plan (CAP):

By following these steps, you can develop a CAP:

• Outline Specific Actions: Clearly define steps to rectify identified issues, specifying what needs to change.
• Set Timelines: Establish realistic timelines for implementing corrective actions.
• Assign Ownership and Responsibilities: Allocate responsibilities to individuals for executing and overseeing the CAP.

Monitor and Follow Up on CAP Implementation:

Monitor and Follow Up on CAP Implementation by following these strategies:

• Schedule Progress Reviews: Arrange regular meetings or checkpoints with the supplier to track progress.
• Verify Effective Action: Ensure corrective actions are carried out as planned and effectively address the identified concerns.
• Adjust and Reinforce: If necessary, adjust the plan or provide additional support to reinforce corrective actions for better results.

Example Of Supplier Audit Checklist

Feel free to mark each box with a checkmark (✓) as tasks are completed during the

audit process: 

Supplier Audit Checklist	Done
Pre-Audit Preparation	☐
Define Scope and Objectives	☐
Select Audit Team	☐
Prepare Audit Checklist	☐
Review Supplier Documentation	☐
Conduct Pre-Audit Meeting	☐
Audit Execution	☐
Opening Meeting	☐
Factory Tour	☐
Employee Data Gathering	☐
Document Review	☐
Closing Meeting	☐
Post-Audit Activities	☐
Analyze and Evaluate Findings	☐
Develop Corrective Action Plan	☐
Monitor Corrective Actions	☐

Conclusion:

Regular quality supplier audits are a linchpin for supply chain success, ensuring adherence to standards and continuous improvement. Open communication and collaboration with suppliers rectify issues and strengthen relationships vital for long-term partnerships. Further guidance on audit best practices and industry standards can be found in resources like industry publications, professional associations, or specialized training programs, facilitating ongoing enhancement in supplier quality and performance.
Read more