Auditing Suppliers and Vendors

Vendor evaluation of vendors which are crucial for your business should be done at least once a year. It does cause harm in evaluating the facilities where they manufacture products which are used by your business. Evaluation or auditing a vendor goes hand in hand with a site audit. You need to audit the vendor location and his products and manufacturing unit to be able to maintain the quality of your products. The type of audits and how many times it should be done depends on the vendor and the kind of services he offers to you. Also how crucial is that vendor and his products for your business.

The areas which need to be covered when conducting supplier audits are evaluation of short shipments, invoicing to and fro from the supplier and technical support. The deliveries which are targeted need to be evaluated as well in order to keep the quality standards intact. The majority of times the nature of audits revolves around two major things. First being the fact that how well your vendor protects the environment when manufacturing products and secondly how good is the equipment he uses in manufacturing the products.

The facilities of the vendor need to be checked for long term usage and also audits would determine how the vendor is going to invest in better equipment and machinery in the future for better development of his business and quality of products manufactured. Supplier audits would determine if the vendor is healthy enough to keep supplying you with the same quality of products he has promised to provide for a long time.

Another integral part of supplier evaluation is the evaluation of the transportation used in supplying you the products they manufacture. The majority of time delay in delivery and damage to raw products is caused during the transportation process. Auditing the transportation chain which provides you the products from the vendor is essential and this will ensure you receive the products on time and your client deadlines are met without any troubles. The transportation company is another vendor of your business and auditing it regularly will ensure your business runs smoothly.

When you need to maintain high standards of quality for your products and services which you provide to your clients, it is required that regular audits are conducted. You can either have an in house auditing department with professional and expert auditors to conduct the audits and tests on your will or you may even hire specialized auditing service providers as a third party. Such specialized companies have expert auditors on board and they conduct specialized audits on your request for suppliers and other vendors of your business. Hiring a third party is very much convenient and you can rest assure that your work is done with the quality that even an in house auditor won’t be able to.