Supplier Audit

A supplier audit is the on-site assessment of the ability of an existing or candidate supplier to meet the buyer's requirements. It is most often carried out as a second-party audit, on the buyer's behalf.

The aim is to see supply risk before the order is placed. A mistake in choosing a supplier becomes the source of every subsequent quality and schedule problem; the audit puts that decision on evidence.

• Buyer companies running a supplier-approval process
• Purchasing departments onboarding a new supplier
• Companies assessing suppliers with performance issues
• Organisations working with a critical or sole-source supplier
• Groups running supply-chain risk management

The criteria are the buyer's own supplier manual, technical specification and code of conduct; a standard such as ISO 9001 and sector-specific requirements can be added to these. The criteria and scoring method must be communicated to the supplier before the audit.

• The quality management system and the validity of certificates
• Production capacity and the current load situation
• Process capability and equipment condition
• Quality control, inspection and measurement systems
• Calibration and measurement traceability
• Traceability and batch management
• Sub-supplier selection and control
• Delivery performance and lead-time management
• Nonconformity and complaint management
• Change management and notification obligations
• Business continuity and emergency plans
• Financial and operational continuity indicators

• ISO 19011
• ISO 9001
• IATF 16949
• VDA 6.3
• ISO 28000

1. 1Defining the Scope and CriteriaWhat is to be audited and against which criteria is set out in writing: a customer code of conduct, a specification, a standard or a checklist.
2. 2Preliminary Information GatheringThe size and activity of the party to be audited, its audit history and any open nonconformities are reviewed.
3. 3Audit PlanThe audit date, team and timetable are prepared; the areas to be visited and the roles to be interviewed are planned.
4. 4Opening MeetingThe purpose, scope, method and reporting format of the audit are explained; the principles of confidentiality and impartiality are confirmed.
5. 5On-site AuditProduction or service areas are walked, records are examined and workers are interviewed. Findings are recorded on the spot.
6. 6Classification of FindingsDeterminations are graded according to the classification of the scheme in use (critical / major / minor / observation).
7. 7Closing MeetingThe findings are presented to management, their justification is explained and the expectation for corrective action is set out.
8. 8Report and Follow-upThe audit report is issued; a corrective action plan is obtained and its close-out is followed up. Where necessary a follow-up audit is carried out.

Findings are rated according to the buyer's classification and are usually tied to a score. The score determines the supplier status (approved / conditionally approved / not approved), which directly affects the ability to win orders.

• Details of the audit body, the auditor and the auditee
• Date, duration and scope of the audit
• Criteria or checklist applied
• Areas and processes audited
• Findings and their classification
• Evidence and photographs supporting the findings
• Scoring or rating, where the scheme requires it
• Corrective action plan and close-out status

This audit documents the situation observed at the time of the audit and within the scope audited. Auditing is sampling-based: the records examined and the areas visited are selected to represent the whole, but this does not mean that every record was checked. The report is neither a guarantee nor a certificate, and it does not relieve the auditee of its responsibility.

Accreditation differs with the type of audit. Third-party audits underpinning management system certification are carried out under ISO/IEC 17021-1 and those underpinning product certification under ISO/IEC 17065; these scopes are subject to accreditation. First- and second-party audits, and audits governed by a scheme owner's own rules (such as SMETA or amfori BSCI), do not fall within accredited certification; they are conducted following the ISO 19011 guidance and produce a report. EUROLAB holds internationally recognised accreditation under ISO/IEC 17021-1 and ISO/IEC 17065, granted by accreditation bodies that are signatories to the IAF multilateral recognition arrangement; which audits can be offered within accredited scope is confirmed in writing at the quotation stage.

• Factory Audit
• Process Audit
• Product Audit
• Quality Audit
• Compliance Audit
• Technical Audit
• Supply Chain Audit