CUSTOMER-SUPPLY AUDIT PROCESS
Auditing, corrective action, and preventive action are
probably the three most critical processes for improving supply performance.
They ‘close the loop’ with all supply chain problem solving. They form the basis
of monitoring, intervening, correcting, and improving most customer-supply
processes.
ISO 9000 AUDIT REQUIREMENTS
Auditing is a fundamental element of most capability
maturity models, customer-supply partnering relationships and certification
standards such as ISO 9000 – 2000. Suppliers are often required to designate a
group of internal process and quality auditors.
ISO 9000 – 2000 states that audits “determine the extent to which the quality management system requirements are fulfilled.” The objective of internal auditing is to determine the effectiveness of the quality management system and identify opportunities for improvement.
CONTINUOUS SUPPLIER REVIEWS
Customer-supply audits are one of the most effective
monitoring and improvement techniques. Often, these assessments are called
quality audits but also involve analysis of cost, technology, delivery, service
and other factors. These audits are an official examination of supply chain
processes, products, or people to verify process improvement, effectiveness, and
compliance to policies, procedures, work instructions, and specifications.
Audits can be conducted on a periodic or random basis and can be performed
unannounced or upon request.
Auditing is also critical to all supply chains to ensure the right products are delivered to the right location on time, in the right sequence, properly protected. In other words, audits ensure key supply chain processes should be running smoothly, are controlled, are capable, and improving.
Once the audit is conducted, audit findings are documented in a report that is circulated to authorized clients. The audit report may recommend preventive action, corrective action or no action. Usually, if action is indicated, a corrective action request (CAR) or preventive action request (PAR) is written to initiate further action.
The following are advantages of conducting customer-supply audits: