Customer wants to audit our supplier audits - seems inappropriate

#1
We are due for a customer audit soon. They have sent the audit agenda. One of the things they want to audit is our audits of our suppliers. They are specifically wanting to see the non-conformances and follow-up.

It seems inappropriate to me to share our suppliers' information. Per my auditor training, all the information gathered in an audit is confidential.

Currently I intend to let them know that we can't share that type of information, but I would like to hear from others if/how they've handled similar requests.

:censored::unsure:

:thanks:
 
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Sidney Vianna

Post Responsibly
Staff member
Admin
#2
I understand the discomfort in sharing some sensitive data, but can't you have the customer reps signing an NDA? And I do think the customers are practicing supply chain management. They "manage" you as a supplier and the expectation is that you "manage" your suppliers. It seems to me that they want to gather evidence that your supplier assessments are robust and your suppliers (their sub-suppliers) are performing meaningful root cause analysis and effecting meaningful corrective actions.

Supply chain management is getting more complex by the day, but I do see the rationale and desire for customers to assess sub-tier suppliers and how direct suppliers manage their external sources; after all more and more business risks are being introduced by such sub-tier vendors.

Good luck.
 

pkost

Trusted Information Resource
#4
Seems reasonable to me. I think you need to distinguish between the sensitive data that an auditor may see during an audit and the confidential information that is present in an audit report/corrective action.

As an auditor I expect to see the design file for a product so that I can assess the design process is being followed, I don't document the highly sensitive contents, I just document that I saw the file and there was a non conformnace because it did not contain a design review as required by etc etc.

As Sidney suggested an NDA should be adequate
 

GStough

Staff member
Super Moderator
#5
Sidney, Marcelo, and pkost are correct. This can be particularly helpful if you have customer complaints that involve products you purchase from your suppliers (their sub-tier suppliers). It can potentially be a good exercise to improve supplier performance for both you and your customer.
 

JoshuaFroud

Involved In Discussions
#6
I will not revisit what the others above me have said, I agree with their statements.

i will, however, add when addressing this question previously I have presented the customer with partially redacted audit reports. The names and addresses of the supplier was removed along with any identifying information, but the body of the report including non-conformance and follow ups were given.

Also ensure you get the customer auditor to sign an appropriately worded NDA or CDA, but this should be standard practice for all customer audits.
 

Eredhel

Quality Manager
#7
I was going to say something similar to Joshua. I think there is room to meet what they want and still be mindful of organizational needs. We actually had a competitor in town purchase an out of town coating facility and they used its paperwork to find customers other shops were getting work from.

Not that your customer would do that to you, just giving a real life example of weird stuff that can happen.
 
#8
Thanks all for the feedback. We do have an NDA with our customer. I was concerned about audit overreach, so others' experience is very helpful. This is the first time in my 15 years that I've had an auditor request this level of detail (and we are frequently audited to ISO/VDA/IATF). I would be less uncomfortable with this in a registrar audit, but with a customer audit, I feel like we're airing our suppliers' dirty laundry (there is potential for this customer to be a direct customer to our supplier).
 

BradM

Staff member
Admin
#9
It's an excellent question and I like how you're approaching it. Thing is... Supply Chains are becoming (or should at least in principle) more collaborative; upstream and downstream should be helping each other.

I think if your supplier audit program is reasonably robust and you do establish with these customers to not share any of the information outside the audit, I think you should be fine.
 

Ronen E

Problem Solver
Staff member
Moderator
#10
(there is potential for this customer to be a direct customer to our supplier)
Are you adding value?...

On topic: I would redact any sensitive specifics, including - as necessary - technical details. It's reasonable to require to audit your auditing process and your diligence, but this should not be an excuse to indirectly audit your suppliers.

If what they're after is actually auditing your suppliers, let it come to the light and formalise it in written agreements.
 
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