Choosing the wrong supplier is in many cases the main cause of your poor production and time delays. The quality of your work is greatly influenced by the inputs you work with. If the inputs do not meet the required specification or are not delivered on time and in the required quantity, it is very difficult to ensure the required quality of outputs. With the help of supplier audits, you can see the possibilities and quality of your suppliers in a short time. In addition, you can be sure that the audit process and output will be handled objectively by a non-interested third party.
Many supplier organizations use it for production process inputs. Given the importance of quality inputs, it is very important to choose the right supplier. You can use a supplier audit to check on a new vendor. But it is equally important to conduct regular audits to see if you can continue to trust your suppliers.
Why is supplier failure critical?
- Increased costs:
- If the supplier fails, you pay the costs. Costs during the year and the number of suppliers can accumulate up to critical numbers.
- A poorly managed supplier failure costs the organization a good name:
- The risk associated with non-delivery of goods or delivery of low-quality goods is on the side of the organization that produces the product. Thus, a supplier's failure can affect a company's reputation.
- Loss of employees:
- Regular supplier failure costs your employees considerable effort. Over time, the employee may decide to look for a new job with less stressful tasks. Also, losses due to supplier failure can lead to cost cuts in the form of labor reductions.
Benefits of auditing suppliers:
- Financial savings:
- Regular audits ensure compliance, identify recurring issues and potential risks. The result will be a reduction in losses due to supplier failure.
- Creating a standard and starting a process of continuous improvement:
- Organizations that use a quality management system are responsible for managing processes, products and services that are outsourced. Through regular audits of suppliers, they ensure compliance with the requirements of the standard and are able to start the process of continuous quality improvement both in their own organization and at the selected supplier.
Possibilities of using supplier audit:
- Comprehensive evaluation of your suppliers with the possibility of comparing results.
- Focus of audits according to criteria set by you.
- Discovering the weaknesses of your suppliers and their causes.
- Recommendations for improving suppliers and further work with them.
- Reduction of discrepancies caused by suppliers.
