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Supplier audit: definition & important aspects
Supplier audit in a nutshell:
A supplier audit is a systematic and documented review of a supplier's processes, systems and performance based on defined criteria. For purchasing, it serves as an important tool for quality assurance, risk minimization and continuous improvement of supplier relationships.
Example: An automotive supplier conducts a two-day process audit at its strategic metal parts supplier, in which 85 checklist items in the areas of quality management, production processes and supply chain are reviewed, resulting in an audit score of 87% and three specific improvement measures.
Contents
What is a supplier audit?
A supplier audit is a structured evaluation process in which the capabilities and performance of a supplier are reviewed with regard to certain criteria. The aim is to ensure that the supplier meets the company's requirements in terms of quality, delivery capability, sustainability and compliance.
Main components of a supplier audit:
- Audit planning: definition of audit objectives, criteria and methods as well as scheduling of audits
- Document review: Review of relevant documents such as quality certificates, production processes and compliance documents.
- On-site inspection: Physical inspection of supplier facilities to evaluate production conditions and quality controls.
- Employee interviews: Interviews with employees to assess operational processes and quality awareness.
- Reporting: Documentation of the audit findings and preparation of a final report with recommendations.
Importance for buyers:
- Ensuring product quality: Audits are carried out to check whether the products supplied meet the specified quality standards.
- Building trust: Regular audits promote a transparent and trusting relationship between buyer and supplier.
- Continuous improvement: Audits identify potential for improvement that help to optimize supplier performance.
- Compliance assurance: Ensuring that all legal and regulatory requirements are met.
Carrying out a supplier audit:
- Audit planning and preparation: definition of audit objectives, selection of audit teams and preparation of audit questions.
- Implementation of the audit: Perform planned audit activities, including document review, site visit and interviews.
- Audit evaluation and report: Analysis of the information collected, evaluation of supplier performance and preparation of a detailed audit report.
- Follow-up and measures: Implementation of recommended measures and monitoring of progress to ensure continuous improvement.
Best Practices:
- Define clear criteria: Establish clear and measurable criteria for evaluating supplier performance.
- Carry out regular audits: Continuously review suppliers to ensure consistent quality and performance.
- Transparent communication: Open and honest communication with suppliers throughout the entire audit process.
- Auditor training: Ensure that the auditors carrying out the audit are well trained and familiar with the audit methods.
Supplier audits: from traditional on-site audits to digital remote audits
Building on the understanding of the supplier audit as an essential tool for ensuring quality and reliability in the supply chain, its practical implementation is becoming increasingly important. In the globalized economy, complex supply chains require more efficient and flexible audit procedures. The shift from traditional to modern approaches is necessary to meet the increasing demands for speed, cost optimization and scope.
Old: Traditional on-site audits
Traditional approach: In traditional supplier audits, auditors physically travel to the supplier's site to check processes, quality standards and compliance directly on site. This approach provides a detailed insight into operational processes and promotes personal interaction. However, such audits are time-consuming, cost-intensive and logistically challenging, especially for companies with international operations. The limited frequency of these audits can lead to delays in the identification of risk analysis and limited transparency.
New: Remote audits
Remote audits: Using modern technologies such as video conferencing, cloud-based document management systems and real-time data transfer, remote audits are revolutionizing supplier assessment. This approach enables auditors to conduct audits remotely without having to be physically on site. The integration of AI-supported analysis tools increases the efficiency and precision of audits. Practical benefits include reduced travel costs by up to 70%, increased audit frequency and a faster response time to potential compliance violations.
Practical example: Digitalization in pharmaceutical purchasing
A global pharmaceutical company implemented remote audits for its suppliers of active ingredients. Using virtual tours and digital documentation, the company was able to increase the number of annual audits by 60%. At the same time, audit costs were reduced by 50%. The faster identification of quality risks led to a 25% reduction in production downtime and strengthened supply security in sensitive market segments.
Conclusion: Supplier audit as a key element for sustainable purchasing success
The supplier audit is an indispensable tool for buyers who want to ensure the quality, reliability and compliance of their suppliers. Through systematic and regular audits, companies can minimize risks in the supply chain, improve collaboration with suppliers and build long-term, sustainable business relationships. Although supplier audits involve a certain amount of effort and potential challenges, the benefits clearly outweigh the risks. With clearly defined criteria, well-trained auditors and partnership-based cooperation with suppliers, supplier audits can make a significant contribution to optimizing purchasing processes and increasing a company's competitiveness. Integrating supplier audits into comprehensive supply chain management creates the basis for successful and sustainable purchasing.
