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-supplier audits are critical to a successful supply chain-

-Supplier Audits -

Supply chain management is an essential part of an organization’s business due to the increase in dependence on outsourcing.    


Supplier Quality Auditing is critical in verifying a supplier’s processes, products or services for compliance against regulatory requirements, customer specific requirements or agreed standards.


Results of the audit provide useful information for decision making which can impact supplier selection and control. 


The following are steps for a successful Supply Chain Audit:


  • Define and the structure of the Business Management System
  • The Supplier Audit must be process-based, metrics-driven and risk - base management focused
  • Develop Audit Scope
  • The audit requirements must be clear and precise
  • Audit planning is clearly identified
  • Collect and review information needed
  • Communicate audit plan with Supplier - Audit Notice
  • Conduct Audit
  • Interview appropriate management and employees
  • Review all documents and process within Audit Scope
  • Take detailed notes
  • Collect objective evidence
  • Observe and sample
  • Prepare Audit Report
  • Determine if nonconformance's or findings are present
  • Discuss Audit Report with Supplier
  • Work with Supplier on any nonconformance's or findings 
  • Close out Supplier Audit
  • Follow up with Supplier on any nonconformance's and corrective actions


What companies should pursue Supplier Audits?

  

  • Companies that do not have a 100% product or service quality from their Suppliers.
  • Companies that need a supplier audit to verify their compliance to their supplier’s products oses.
  • Companies that need to improve their Return on  (ROA).
  • Companies that would want to manage their supply  quality management system so that they can know that their suppliers are complying.
  • The companies that struggle with reallocating their  resources such that they cannot keep current projects on schedule while their engineers are out in the field conducting supplier audits.
  • Businesses that need to conduct mutual and beneficial audits to their company and suppliers.
  • Companies or businesses that would want to create an integrated auditing process aligned with internal goals and supplier commitments.
  • Companies that require flexibility and consistently structured supplier audit services so that they can execute a value-adding audit program.


Benefits of Supplier Audits:

 

  • Increase profits margins because of reduced costs of  production and service.
  • Helps your company to reduce costs in various  areas including: Inventory, purchasing and supply, investments, marketing  costs, etc.
  • Minimized defective products and services leading to reduced  investments costs.
  • Helps companies to achieve streamlined business  operations.
  • Enhances the positive impact of the business in the market place.
  • Reduce its inventory costs to a minimum.
  • Due to increased customer responsiveness, the company or business can increase its market share in the market place.
  • Creates positive impact of the company or business in the global market place because of its partnership with the suppliers which helps in the production of quality products and improved operations.
  • Ultimately  contributes to the continuous improvements of the company’s projects.


BMS can assist you with 

your  "Supplier Audits".

Call us at today (405) 593-6085