When you are carrying out an external audit, you need to do your homework. The more you familiarise yourself in advance with the supplier’s business, culture and terminology, the better the dialogue and the supplier audit will be.
Follow the 7 steps
- You represent the customer
Your organisation is the buyer, and the supplier is the seller. During a supplier audit, you act as the auditor representing the buyer, and your task is to audit the contract, i.e. to ensure that the supplier is capable of delivering the product purchased in accordance with the contract. - Be aware of your position
Be aware that you hold authority and influence that differ from an internal audit. You act as your organisation's eyes and ears, and your audit may have financial implications for both your organisation and the supplier. - Understand the culture
As far as possible, familiarise yourself in advance with the company's culture. There may be specific jargon in use, and the organisation may be either flat or hierarchical. If you are abroad – for example in China – the company culture will often reflect the national culture. The key point is that you should not let first impressions influence you during the visit. You can reduce this risk by preparing yourself in advance regarding the relevant culture. - Follow the ethical principles
Regarding the local culture, you also need to be aware of your organisation’s policies and your own boundaries. On one hand, a gift such as a bottle of wine does not necessarily constitute bribery - in fact, in some countries, refusing such a gesture may be considered impolite. On the other hand, receiving six bottles could be an attempt to influence you. - Speak the supplier's language
Familiarise yourself with the professional terminology used within the company. This will make you appear more competent during interviews and enable you to acquire more knowledge from the process. - Start at the leadership level
Start by assessing the situation through an initial meeting with the management. This typically provides a clear understanding of the organisation, the chain of command and identifies relevant interview partners. The meeting also offers insight into whether, and to what extent, management is involved and engaged in the management system. - Be open and transparent
Ask your questions in the same manner as you would during an internal audit and make sure to summarise and provide immediate feedback – e.g. “do we agree that this and that deviates from the contract”. A supplier audit should be open and transparent, so the supplier is fully informed of their status following the audit.
Reach out to Jens Ewers for more information.