Are You Auditing Your Suppliers?


Outsourcing business can be a terrific way to grow your company and save money in the process. But, if you are not auditing your suppliers, how can you be sure they are meeting your standards and accurately complying to your contract?  The lack of a supplier audit, could put your company at risk.

Why audit suppliers?

Auditing your outsourced work can help you and your supplier better your companies and fix any issues that occur. Without an audit, there is not accurate representation of your supplier performing at their highest potential. Audits also help investigate potential misconduct, overbilling, and breaches in contract while evaluating the company’s Quality Management System (QMS). An audit will provide clear, and transparent processes and documentation throughout the company you entrust your outsourcing to and identify the potential hazards that may occur.

When should you audit your suppliers?

Auditing while comparing vendors can help with the selection process by seeing which company achieves exactly what you are searching for. If you do not choose to audit during the vendor selection, it would be useful to perform this audit during the supplier onboarding process to help map out accurate goals to achieve. Once the partnership evolves, it is a good idea to either annually or quarterly audit to ensure the level of consistency, especially before you renew your contract.

Compliance-focused vendor audits are increasingly being perceived as best practice across a wide range of industries, and particularly in logistics where the business model engages large numbers of third-parties.

Tips when auditing suppliers.

  • Develop the scope of your audit. Evaluate supplier QMS documentation (request if needed) and develop checklists to identify underperformance that might be timely remedied and encourage support efforts in high-performing areas. Determine the scoring process before audit begins.
  • Within the ISO 9001 certification, the customer must allow the evaluation and checklist to be transparent and available for the supplier.
  • Evaluate the facility, QMS, individual employees, communication process, equipment and tools, proper testing of equipment, storage of equipment, delivery, and final product.

If you are looking to audit your suppliers, call us today to learn how BDeWees Consulting can assist.