Supplier Audit UK
When and what to be appraised with reference to your suppliers is going to vary from organisation to organisation, this can be a time consuming and costly activity, and requires potentially a vast amount of gathering of information, you therefore need to be selective with your suppliers from the offset and make sure you have all the key areas covered. Every part of Oliver John’s procurement management process includes a strong supplier audit.
Financial information should reduce the risk of placing orders with organisations which has sufficient resources to fulfil the order.
Production capacity has the supplier got sufficient capacity to fulfil the order? Have they got the resources in place to expand, now or in the future?
Innovation and design have the got in place the research facilities and specialised equipment in place within the organisation and also the qualified staff to carry the project forward.
Production facilities. Has the organisation got in place good facilities and are they well maintained? How old is the machinery, and is it purchased, leased, loaned etc
Human resources. Organisations are only as good as their employees, a very true saying. So we look at various aspects of HR, including experience of managers and staff turnover which can give a good insight into the organisations loyalty.
Quality. Assessments are made with the emphasis on British Standards i.e. has the organisation met with BSI schemes, such as kite marks, Safety Mark, and schemes for regular stockists. How do they carry out their quality controls and can the supplier guarantee the purchaser can safely eliminate the requirement for any incoming inspections.
Performance. Especially with construction projects or computer installations, suitable questions need to be asked such as : references, similar projects, what innovations might be introduced?
Environmental / Ethical. Are all areas required by EU directives been covered in the Environmental and ethical polices of the organisation, and are they being adhered to?
Information Technology. IT is a ever growing way of transporting information between businesses, does the supplier take full advantage of their e-business possibilities and more over can this be integrated to your own organisation?
At Oliver John our we have prepared various questionaries’ in place for these activities, and are experienced in the evaluation of suppliers, combined with site visits you can be assured we will give an independent view in our procurement management services.