Supplier refusing to be Audited

[AliGuff]

We are a manufacturing company owned by a Group.

We are working with a second manufacturing company owned by the same Group, but who are separate to ours (though we do share a site)

The other company is currently supplying us with a product for our customer. I have treated them as any other supplier.

I requested they completed a Supplier Self Assessment form which they queried stating we were the same company. I explained that they are a major supplier on our project and thus are treated as every other supplier. They completed the form.

Following a customer visit, concerns were raised on how the quality inspections were being documented at this other company. It was not raised as an NC, just a concern. To help alleviate the customer's concerns I requested I carry out a supplier audit on this project. After initially agreeing, a 'bigwig' has refused to allow us to audit, stating it would not be productive

I have put a note on our key supplier list to this effect for future reference.

I am interested if others have had suppliers refuse to host an audit and what you have done about it

Thanks

 

[Scanton]

If I were in your shoes I would be looking for another supplier.

Every supplier quality manual I have ever seen includes this requirement, i.e. to allow the customer to audit their supplier.

Standards aside, what does this tell you about the supplier, other than they have something to hide, or that they are so wrapped up in petty politics that they cannot allow a perfectly simple and reasonable request?

 

[dominique]

You say that you are part of a bigger company and Group. The company which supplies you is partially if not fully owned by means of a Group license hence it is more an intercompany supply situation than sub supplier. Most companies have specific Purchasing policies for Inter company supply management for PPM reporting and escalation and "sourcing away meetings" as it is really counterproductive as you all share the same board of senior directors and a concern could be resolved easier directly. Robing Peter to pay Paul is equally a waist as the penalty will be paid by the group. So I see a lack in the Purchasing Policy and Procedure for intercompany supply evaluation. That said intercompany suppliers are normally found in the top 80% Pareto of problem supplier statistics. Which in tern frustrates the Customers and internal HOD's as they seem untouchable as it always feels like the black sheep of the family is supplying your plant.

 

[GStough]

We are a manufacturing company owned by a Group.

We are working with a second manufacturing company owned by the same Group, but who are separate to ours (though we do share a site)

The other company is currently supplying us with a product for our customer. I have treated them as any other supplier.

I requested they completed a Supplier Self Assessment form which they queried stating we were the same company. I explained that they are a major supplier on our project and thus are treated as every other supplier. They completed the form.

Following a customer visit, concerns were raised on how the quality inspections were being documented at this other company. It was not raised as an NC, just a concern. To help alleviate the customer's concerns I requested I carry out a supplier audit on this project. After initially agreeing, a 'bigwig' has refused to allow us to audit, stating it would not be productive

I have put a note on our key supplier list to this effect for future reference.

I am interested if others have had suppliers refuse to host an audit and what you have done about it

Thanks

Here are some considerations....

1) Does the Group have a policy or procedure that outlines the process for this scenario?

2) Would the supplier be willing to provide some objective evidence that they document quality inspections they do, and the procedure/s relating to them, as well as record retention requirements?

3) Would the supplier be willing to provide the most recent ISO audit report from their registrar, if they are registered to an ISO standard?

4) Would a remote audit be more palatable for the supplier? Perhaps a virtual audit would be a better option for them.

I've used these alternatives in similar situations, and have found that the reluctant supplier will usually agree to at least one of these.

Hope this helps.

 

[Cari Spears]

Following a customer visit, concerns were raised on how the quality inspections were being documented at this other company. It was not raised as an NC, just a concern. To help alleviate the customer's concerns I requested I carry out a supplier audit on this project. After initially agreeing, a 'bigwig' has refused to allow us to audit, stating it would not be productive.

Does this need to be an audit? Could they simply send you something - their procedure or an example of the inspection package - that describes their inspection documentation?

Was the concern raised because the customer doesn't know what they'll receive - or because of something they saw that they didn't like?

 

[Mike S.]

I like GStough's approach.

Our company is part of a group of companies, but we treat other companies in our group like any other AS9100 certified supplier, which does not require an on-site audit in most cases unless there is a problem.

 

[Al Rosen]

Since you share a site, rather than a complete audit, you could request to perform a "Source Inspection" for the material being supplied for that customer. If there haven't been any issues with the supplier, why did your customer raise a concern?

 

[BradM]

Well... honestly I do see both sides: yours and the other sites management. You have customers to please. The other management, has probably had to spend so much wasted time on useless/ no value activities in the past.

For now, I would keep this simple and to the point:

Following a customer visit, concerns were raised on how the quality inspections were being documented at this other company.

Was it that there were no quality inspection documents available for the customer? Or did they review it and have some concerns?

Their concerns... were the issues dictated on the purchase order or some agreed upon standard?

I would be specific here of what the problem is. Then take that information to the supplier. Now you have something that the supplier can work on; and something that would benefit them for their other customers.

 

[Eredhel]

Maybe they're thinking you want to do a full on audit for something that really requires much less.

 

[ADSJT]

Does the "bigwig" work for, or have oversight of, both companies? If he only works for the supplier, perhaps a bigwig from your company could intercede. If he works for both, maybe you could ask for a compromise and ask to be allowed to observe the inspections so that you can clearly understand what is being done so that you can communicate properly with your customer. I would stay away from the word "audit".
(We all know that "observing the process" is "auditing".)

Many managers have a negative connotation of that word, as a waste of time. Since you share a site, there is no travel involved, so a less formal approach may satisfy all.

I would also caution you about putting notes on your key supplier list. This could lead to questions from future auditors from all customers. Don't wave that red flag.