Clearly define the audit objectives
One of the most important elements to define before conducting a supplier audit is clarifying the objectives of the evaluation. This depends on the specific requirements and challenges of the commissioning company.
The quality control of the products or services provided by the supplier is one of the main concerns. Quality control refers to their compliance in terms of performance, reliability, longevity, and durability. In particular, it is possible to check the materials, the technology used, and compliance with applicable regulations.
Furthermore, ISO standards and other company policy standards, such as ISO 9001 certification, should not be overlooked. Risks associated with the supplier approach must be controlled. Finally, it is possible to consider objectives related to social responsibility and a safe working environment.
Thoroughly prepare the audit
After setting the objectives, it becomes easier to prepare the audit in line with the expected outcomes. The first preparation step involves selecting suppliers by gathering information about them. This includes collecting contracts with the supplier, previous audit reports, basic compliance certificates, and ISO 9001 certifications.
Lastly, all technical documents related to the purchased products must be drafted. These preliminary documents are important as they help identify potential non-conformities. Auditors must then develop an evaluation grid specifying the criteria and levels of compliance.
This grid assesses quality, time management, adherence to standards, and potential risks. It is also necessary to schedule all appointments, including contacting the supplier, setting a date, preparing questions, detailing the evaluation grid, and coordinating auditors. These preparation steps facilitate the upcoming evaluation and increase its effectiveness.
Check regulatory and documentary compliance
One of the first checks performed during a supplier audit is regulatory and documentary compliance. This step is essential to ensure that the supplied products and services meet the quality, safety, and performance standards required by the market.
First, it is necessary to verify the company’s certification to ISO standards, especially ISO 9001 for quality management. Other relevant certifications may include ISO 14001 for environmental management or ISO 45001 for occupational safety.
Then, compliance with local and international regulations must be assessed, which varies depending on the target market, such as CE standards in Europe, FDA in the United States, or ASTM for specific industries.
Finally, the supplier must fulfill their contractual obligations, including specific criteria agreed with the client company. These relate particularly to raw material traceability, regular deliveries, and implementation of continuous improvement plans. Documentary verification is based on a checklist that includes obtained certifications, product datasheets, and the supplier’s internal procedures.
Assess production capacity and processes
A supplier audit helps assess the provider’s production capacity to ensure they can meet the company’s requirements in terms of quality, volume, and timeline.
First, the auditor will examine the supplier’s facilities and equipment. Obsolete or poorly maintained industrial assets can compromise product quality and cause production delays. The supplier’s production capacity is another key evaluation factor. The audit verifies whether the supplier can meet their commitments, even during periods of high demand.
Next, auditing the production processes reveals potential inefficiencies. The analysis focuses on product traceability and ISO 9001 compliance.
Lastly, raw material and inventory management is a critical performance factor. A responsible supplier should anticipate demand trends and secure their international purchases. A lack of competitiveness in sourcing could lead to shortages or cost overruns, thereby compromising delivery reliability.
As a business, you aim to establish reliable partnerships with your suppliers to ensure regular, compliant supply. However, if your main supplier is a key link in your production chain, so is their own supplier. A high-performing supplier does not just manage their production but must also effectively manage their own supply chain.
Check sourcing management
The supplier audit must assess sourcing management by analyzing both the diversification of suppliers and the stability of current supply contracts.
Indeed, a supply source that is overly dependent becomes a risk. In such cases, the supplier must be asked to optimize their supplier management to avoid quality issues, missed deadlines, or contract breaches.
Ensure material traceability
The audit must also ensure material traceability—an important element to certify compliance with material handling standards and avoid falsification or deviations from conformity.
To this end, the auditor will check that the supplier has a supplier management system in place, allowing them to track certifications, quality tests, and the origins of materials.
A well-organized supplier should anticipate demand fluctuations and logistics disruptions and implement solutions such as buffer stock or recovery plans with their own suppliers. Optimized supply chain management reduces risks and improves delivery reliability.
Analyze quality management and non-conformities
Quality management is a fundamental criterion for evaluating supplier reliability. A good provider must have a quality management system compliant with international standards, such as ISO 9001. This system includes formal procedures for process monitoring, documentation management, and continuous improvement. The auditor must ensure that these protocols are well implemented and not merely theoretical.
Then, internal quality controls are reviewed: a serious supplier performs regular tests to ensure product compliance. The effectiveness of tracking tools, such as quality management software, is also assessed. Finally, non-conformity management is a key indicator of the supplier’s ability to respond to defects. The audit checks how issues are detected, handled, and documented. It also ensures that corrective and preventive actions are implemented to avoid recurrence.
A good supplier is actively committed to a continuous improvement dynamic. This ensures customer satisfaction and sustainable collaborations. You’ll find all our tips here on how to find the right supplier for your business.
Review financial and logistics aspects
A supplier check does not only concern product quality or manufacturing processes. This type of audit must also cover the provider’s financial situation and logistics performance. This information ensures supply security and mitigates risks of supply chain disruptions.
First, the auditor verifies the supplier’s financial stability by reviewing their balance sheets, profitability, and any debts. A supplier facing financial trouble poses a potential risk. In cases of bankruptcy or even economic difficulties, client orders may be delayed, costs may suddenly rise, or the provider may no longer honor commitments.
The audit also ensures that the supplier meets delivery deadlines. To do this, the auditor reviews delivery history, any delays, and the provider’s ability to respond to unexpected events.
Draft the audit report and quality plan
Following the audit, the results are formalized in an audit report. This report summarizes all findings and includes recommendations for implementation. It contains several key sections. First, a summary of the supplier’s strengths and weaknesses should be presented, highlighting best practices and areas for improvement to ensure effective collaboration.
In the case of non-compliance, a corrective action plan must be implemented. This plan should outline the actions to be taken, deadlines, and the responsibilities of each party. Proper management of corrective actions strengthens quality and prevents recurring problems. The audit promotes continuous improvement and, beyond the one-time evaluation, should be part of a long-term quality approach.
A follow-up process should be implemented to ensure that recommendations are applied and improvements evaluated. This may include follow-up audits, regular checkpoints, and the use of quality management tools to effectively guide improvement.
