Why a Supplier Audit

Why a Supplier Audit?

A supplier audit is when a third-party inspector visits a supplier's warehouse, factory or processing facility to review and check its practices, processes, certification and trading history. Goodada conducts Supplier Audits across 76 countries.

Goodada's Supplier Audits are tailored to meet a client's requirements and the industry in which the Supplier operates. Our industry-tailored audit reports enable our clients to maximize the information-gathering process when an auditor is requested to visit a supplier to conduct an audit on behalf of the client.

It is considered best practice to audit a supplier every two years and to have this audit conducted by a third-party inspection firm such as Goodada.

Key Features of a Supplier Audit

Supplier Audit, also known as Factory Audit, involves visiting the Seller's premises to conduct a comprehensive inspection covering various essential areas:

Supplier Identification: - This investigation determines whether you are purchasing from a trading company or directly from the manufacturer. In case of direct purchase from the manufacturer, the factory's details are gathered, enabling you to buy from them directly, thereby eliminating intermediary costs and saving money.

Background Information: We thoroughly examine exporting licenses, financial circumstances, business licenses, sales records, and factory owner details to ensure the supplier's credibility and reliability.

Quality Controls Procedures and Responsibilities – This aspect focuses on investigating if the supplier maintains the expected quality records. It involves validating the authenticity and validity of testing certificates and assessing the suitability of your supplier's quality management system for your supply chain

New Part Manufacturing Procedures –This step is essential to confirm the seller's practices and procedures concerning the production of new products. By gaining a complete understanding of your supplier's sourcing and operational policies, you safeguard your brand image.

Product Testing –We review and verify whether the supplier's testing procedures are suitable to guarantee the quality and safety of the products supplied.

Consumer Complaints – This part aims to comprehend the supplier's practices and procedures for handling consumer complaints, helping you gauge their customer service responsiveness and problem-solving capabilities.

Product Failure Responsibilities – It is crucial to confirm the level of support and commitment the supplier will provide in the unfortunate event of product failure, ensuring you are adequately protected.

On-Time Delivery – Identifying the supplier's steps and measures to ensure on-time delivery of products is vital to maintain your supply chain's efficiency and meet customer expectations.

Why Get a Supplier Audit?

Reduce risks in product quality, financial, ethical and supply chain.
Review and verify a suppliers quality control practices and processes.
Enables a firm to get information about a suppliers sourcing and operational processes.
Provides stakeholders with assurance that suppliers in a firms supply chain adhere to the proper worker and environment welfare practices.
It helps firms to secure and protect their brand image and emphasize good corporate citizenship.

For more information about Goodada's Supplier Audit service, please contact:

Contact Person: Aidan Conaty

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Phone:(Europe/ Rest of the World) +353 1 885 3919 ; (UK) +44.020.3287.2990 ; (North America) +1.518.290.6604

Types of supplier audits

There are two main types of Supplier Audits that third-party Inspection companies offer their clients. The best type will depend on the reasons the client requires the supplier audit to be done. These types are:

1. Announced Supplier Audits

An announced Audit is when the Supplier that will be audited has been informed that they will be audited. An audit date is agreed upon between the Supplier and the auditor. Sometimes, with the client's permission, the Supplier will receive a list of questions and items that the auditor will review.

It is the most common approach to an audit as it ensures good will the Supplier, and there is a less likely likelihood of the auditor being prevented from entering the Supplier's factory or facility. However, the drawback of this approach is that it gives a supplier time to hide any issues from the auditor.

2. Unannounced Supplier Audits

An Unannounced audits is when an auditor arrives at a Suppliers facility, but the supplier has not been told beforehand that the auditor is visiting.

This advantage of this style of audit is that it enables confirms to get a real unaltered view of the supplier and their operations without the supplier being able to prepare or change them to suit the audit. The disadvantage of this style of audit is that there is a high chance that the auditor will be refused entry onto the suppliers premises, or the key personnel are not available to provide the information required.

Steps of a Supplier Audit

1. Client registers and books a Supplier Audit on Goodada

2. A pre audit online meeting is held between the client and the audit manager

3. The tailored audit template is designed .

4. The audit team is selected

5. If it is an Announced Audit, the Supplier is contacted by the audit team and the audit date is agreed.

6. The Audit team visit the Supplier to conduct the audit

7. An Audit report is prepared which details the results and findings of the audit.

8. The audit report is uploaded onto the clients Goodada Inspections panel for their review.

Benefits of a Supplier Audit:

Reduces Customer Complaints –If a firm is receivne a lot of complaints from their customers about a product this audit It helps a firm to investigate what is going wrong with their suppliers production processes.
Check if a Supplier is Outsourcing – It is vital for the securing of a companies quality, reputation and product supply chain to know if a supplier is outsourcing. There could be ethical and welfare issues with outsourced provider to your supplier that may have consequences for your company.
Identification of Risks – A Supplier Audit provides an independent assessment of a supplier which can identify any potential risks in the production process or the supply chain.
Improves Supplier Communications – Many Suppliers like to see auditors visit their factories as many feel that it is a sign from their customers that they are een to maintain and improve their business relationships. Additionally, as an auditor is an independent person, suppliers often feel less restricted to speak to them about any trues issues or concerns that they are having. This can then be feedback to the client.

Supplier Audit Services in over 76 Countries

Goodada has been providing Supplier Audits and inspection services for over 20 years. Today, we offer Supplier Audit and Inspection services across Africa, Asia, Europe, the Middle East, South America, North America and many other countries. We have offices in Europe, Asia, USA and the UK. Our team of experts are available to provide assistance to solve and quality issues or supply chain challenges that you may be facing.

Goodada offers a range of inspection services, to learn more, please visit our Types of Inspections page.

Supplier Audit Video

Click on the Image to play the explainer video about Supplier Audits

如需了解我们的中国供应商审核服务，请访问Goodada中文网站。

Para ler sobre nossos serviços de Auditoria de Fornecedores em português, visite o site Goodada Portuguese.

Why a Supplier Audit