Benefits of Supplier Quality Audit

by Procurement Freelancers Team

Do you trust your suppliers completely? Regardless of your answer, you need to have a properly maintained supplier audit process in place to be sure whether your suppliers are having proper procedures and if they are applying everything properly. Supplier auditors conduct audits and help manufacturers keep their eye on the employees working for the suppliers. In addition to these, it helps you check if the supplier’s operational standards are aligning with the industrial standards. A well-built and visible brand recognizes supplier audit as a pertinent task and uses this process to reach out to a greater number of customers.

Given below are four main benefits of conducting supplier quality audits. Read on to know them.

Better manages business relation with contractors and suppliers

Cost reduction is one of the main motives of conducting supplier quality audits in a business. When efficient supplier auditors are appointed, the cost gets reduced unbelievably, cutting down other product-related issues and expenses. Supplier quality audit helps in protecting the brand reputation, streamlining the contractor and supplier management process, and this ultimately helps in managing the profit margin of the organization. Quality audit procedures work by providing a comprehensive image of the supply chain operations as supply chain-related issues contribute to the cost of poor-quality products. After a supply quality auditor performs a quality audit of the manufactured products, manufacturers can then work with the suppliers in a one-to-one manner through supplier-charge backups. When the cost of production goes down, the profit margin experiences and enhance, which in turn, helps in providing value to the customers without compromising on the quality.

Improve supplier relation

After a quality control subcontractor performs a quality check of the manufactured products, he informs the manufacturers of the product’s quality. This helps manufacturers define the quality objectives of the product. When the manufacturers get an idea of the product’s quality, this helps them gain visibility into the supplier activities and provides them complete transparency into the supplier-related practices. This helps manufacturers have a direct and genuine conversation with the supplier, where manufacturers work with their suppliers to improve product’s quality, in case faulty products are found manufactured. If faulty products are found, the manufacturers can choose to pursue a cost recovery process through supplier-charge backs and recover the product’s quality. This way you can see how a supply quality audit contributes to improving the relationship between supplier and manufacturer through a proper exchange of information and complete visibility to both sides. A business that organizes regular audits makes it mutually beneficial for suppliers and manufacturers by aligning the goals of both sides.

Read: Strategies for Improving Supplier Relationship Management (SRM)

Adopt business quality standards

If your suppliers have a good knowledge of the industry standard and customer’s product requirement standard, they will most likely produce good quality products. The quality of your products will directly depend on the quality of your suppliers. And to maintain consistency in the product’s quality throughout, the manufacturers need to enact the same standard in the supply chain as well. One can put an electronic quality management system in action to automatically measure and track the industry regulations and standards, the requirements of the customer, and whether suppliers are meeting the requirements, and also check whether supplier quality documents are properly archived and in place. A supplier auditor properly audits and inspects important records. Even if there is any non-compliant material, a quality audit will reveal it and will decide in motion to make sure the industry standards are maintained.

Improve customer satisfaction

A perfectly audited product enhances the chance of bringing better quality to the market as these quality audits clearly define the product’s standards. When the product’s quality is clearly defined and the industrial standards are known to the suppliers, the suppliers become cautious about the industrial requirements. They try to align their standards with the required quality standards and in this way work in a collaborative manner with the manufacturers. Proper quality audits help in providing complete traceability and product genealogy of the products manufactured. Supply audit control helps in identifying the gap between the manufacturing process and the supply quality process. This also helps the manufacturers close a loop if deviations are found. Also, quality audits during manufacturing the products help in investigating and identifying the risk areas before they happen. With quality standards in place and firm compliance with the customer requirements, customer satisfaction will surely improve.

Read: What are the Ways of Improving Customer Experience?

Suppliers play a big role in making or breaking the reputation of an organization. The quality put forth by the suppliers plays a vital role in maintaining your standard in the market and holding on to your brand visibility. A quality control subcontractor effectively performs supplier audits to introduce accountability and measure and track the supply chain performance. Put your supply audit processes in place to improve your brand name and visibility.

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