Course Overview

Due to an organisation’s increasing dependence on outsourcing, supplier management is an essential part of an organisation’s operations. Supplier Audit is used by organisations to determine which suppliers they can work with, to meet their material quality and timelines. Suppliers are critical stakeholders in the value chain who can make your work easier. However, if they do not perform as per expectations, it can have a serious knock-on effect on your operations.

What does it mean to audit a supplier?

As a company grows, so does its supply chain and vendor/supplier-related risk. With every new vendor, comes the threat of poor quality, delivery, and performance. Without adequate oversight of all vendors, the standard, quality, and timely delivery of supplied parts and components can slip through the cracks. Companies can enhance their product quality and meet customer satisfaction by ensuring their supplier’s product quality and delivery standards remain high. This is what a supplier audit seeks to highlight.

How do you audit a supplier?

A supplier audit is necessary to verify supplier processes, capabilities, quality standards, and compliance with regulatory requirements. Audit findings and the report provide useful information to management for decision-making, which could impact supplier selection and control. Therefore, your organisation must make sure the auditor competency is up to notch in providing reliable audit results so you can make an informed decision.

This Zoe training course will provide you with knowledge and understanding of the fundamental concepts and importance of supplier auditing in supply chain management. By undertaking this course, you will gain detailed knowledge and skills about all the aspects necessary to plan and perform a supplier/vendor audit. The knowledge and exposure gained through this course will also give you the required skills to be a key contributor in devising the supplier/vendor strategy for your organisation. You can implement a progressive due-diligence, thus demonstrating the potential for excellence.

Course Objectives

The objectives of this course are to provide professionals with:

• The principles, objectives, and process behind supplier auditing

• Understanding of how to properly prepare for and carry out an audit

• The tools and techniques that can assist supplier auditors in conducting effective audits

• An understanding of the different types of audits, their uses, and an awareness of the type best suited for the intended objective situation

• The analytical and presentation skills to summarise audit findings and present them in a manner that allows for practical decision making

• The knowledge and skills to perform supplier due diligence and risk management

• The communication techniques used to engage with the supplier to perform an effective audit

• An opportunity to work hands-on on case studies to hone the fine skills required to plan, execute, and report on a Supplier Audit

Training Methodology

This collaborative Supplier Audit Training Course will comprise the following training methods:

• Lectures

• Seminars & Presentations

• Group Discussions

• Assignments

• Case Studies & Functional Exercises

Similar to all our facilitated courses, this program also follows the ‘Do-Review-Learn-Apply’ model.

Organisational Benefits

This course can benefit organisations significantly through:

• Significant control on risks, such as quality, safety, reputation, business continuity, and cost volatility

• Better and enhanced contractual and business relationships with suppliers

• A closer alignment to the organisations’ compliance standards

• Ensure satisfaction that the supplier meets the regulatory standards (such as country-specific regulations, industry standards, and  corporate policies)

• Better procurement decisions through mitigation of risk through effective communication, evaluation, selection, and monitoring services

• With ongoing guidance and support throughout the procurement process, lead times are reduced and efficiency is improved

Personal Benefits

This course will benefit participants through:

• A better understanding and knowledge of all aspects of supplier auditing

• Development of techniques to effectively perform an audit using new skills and the process-based approach

• The ability to effectively schedule, plan, prepare for, and conduct supplier audits

• Increased experience and confidence to train other team members on audit best practices

• Analytical skills to develop and present a report on areas that are effectively implemented, require improvement, or are nonconforming to requirements

• Communication and presentation skills to report findings clearly and concisely

Who Should Attend?

• Executive QA management and Senior Leadership involved in Supply Chain

• Management who want to gain a better understanding of the Supplier Audit process

• Current supplier auditors who wish to enhance their knowledge, skills, and auditing approach and get certified

• Team members who are involved in supplier quality assurance functions, such as quality engineers and supply chain analysts

• Staff and management in sourcing, procurement, and regulatory affairs who could use Supplier Audit process knowledge to perform effectively in their respective functions

• Anyone interested in a career in Supplier/Vendor Audit

Course Outline

Module 1: Overview of Supplier Audits

• Introduction to Supplier and Vendor Audits

• The Purpose of Auditing

• The Principles of Auditing

• The Benefits of Auditing

Module 2: “Types of Supplier Audits”

• System Audit

• Compliance Audit

• Process Audit

• Product Audit

Module 3: The Supplier Audit Process

• Prepare a detailed Supplier Audit Program.

• Pre-audit questionnaire and visit

• Team selection: audit

• Audit notification

• Prepare a checklist.

• Opening (in-brief) meeting

• Audit

• Debriefing (out-brief) meeting

• Reporting

• Follow-up & Review

Module 4: Supplier Audits | Increasing Value

• When conducting the supplier audit

• What to/not to assess during a supplier audit

• Determining your goals

• Reviewing supplier policies, procedures, and quality documents

• Field observations for site-level visibility

• Reporting findings and giving recommendations

• Coaching suppliers on how to close the gap

Module 5: Supplier Due Diligence

• What is supplier due diligence?

• Why is it necessary?

• Supplier due diligence framework

• Steps to ensure supply chain compliance

Module 6: Risk Management for Suppliers

• Risk management principles

• Types of Supplier Risk

• Process for assessing supplier risk

• Steps to mapping risk profiles

Module 7: Result Review & Post Action Plan

• How to present findings

• How to develop an action plan or roadmap

• Adhering to the roadmap

• Control Plan

• Metrics in accordance with the Control Plan

• Escalation, when required

Module 8: Opportunities for Improved Supplier Performance

• Techniques and Tools for Encouraging and Improving Supplier Performance

• Emerging Technologies for Auditing

• Suppliers are coached and mentored.

• Case examples

• Simulation of Supplier Audit