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Don't you think that it's expensive especially for minor materials ...
it not only the value or quantity of material which matters during procurement. Different procedure have to be defined for different category of mateirl. i.e. if the material is to be used directly or is primary material which will influence the quality of the final product certainly vendor site must be audit to ensure the quality management system of the vendor. on the other site if the mateirla to be procured is indirect material than site audit can be avoid. Quality of final product always comes first.
i believe it is a common procesure that must be performed before adding any supplier to your approved supplier list.
we always do it when using sap SRM.
if he is in the list means he will get our orders,how can we give our orders to someone who isn'r really verified
Sometimes. In recent years the internet and multi-model business offered a lot of easy solutions which are trustworthy. Interestingly, these are3rd party certified like SGS. Before planning to go to the facility the key information like annual Turn Over / No. of Employees may give you an idea of results. If you go and see, waste your two weeks, if output is the same, the scenario comes back to square one.
It depends on the type of relationship with the supplier. If we are procuring material of minor value and on occasional basis, the process of on-site audit would prove to be a time+money consuming exercise and may also result in prolongling the procurement process. In such a case, increased attention should be paid to the quality of material being procured. However, in case of suppliers with whom we intend to build long term relationship for regualr/high value contracts, positive outcome of on site audit should be a necessary pre-requisite.
Yes unless your requirement is a standard item from a reputed company. Supplier audit is a mandatory pre-requiste especially when you deal with new supplier.And a periodic audit of existing supplier is prefered to ensure that supplier maintaining initial approved standards in operations.
Adding new supplier in the roster is useful which means the procurement officer carried out his job by undertaking Market survey
To refute corruption that might arise in long time treatment between the PO and the supplier
It is a good practise to carry out on site audits before adding a Supplier on database should the resource per. This will help in knowing the type of Supplier one will be adding on database, have a physical appreciation of the office set up and how they run their day to day operations. This will ensure that brief case suppliers or sole traders will be noted, hence due deligency always when dealing with them and family business are also noted during audit. In addition, it will be easy to check the stability of the supplier as you check their books of accounts and new player on the market can be easily noticed. Conclusively, by carrying out new supplier on site audit, one will determine the effort, risk management and value of orders to entrust this supplier with, and also rank accordingly and determine where to place this new supplier on the supplier preferential model.
That is good practice to implement quality system more efficiently,