Would one deny a Request for a Customer Audit ?

#11
While I agree from a business sense standpoint, we must use caution here. Again I go back to contract review. If you don't take exception and the customer has a right of access clause in there p/o or associated quality clauses you may be in for a fight.

I would review my procedures and make sure this is properly addressed and also make sure this is dis-positioned during contract review. It will give you "legs" and save potential headaches and wasted time down the road.
Good point, Jason, but it takes a pretty mature client (only in certain industries too) to put that stuff in the contract! And, they appear, based on what we've been told, not to be in that league!;)
 
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Rand T

#12
I have refused several audits. I can't afford to spend a whole day on a $200 dollar a year customer just because they want to write off a trip to Florida during the winter. On the other hand, my large customers get the royal treatment when they want to audit us. To me it is a question of economics.
I bet that coincidently, they always want to audit you in February/March, and never in June through August, right?
 
D

dkusleika

#14
I had a supplier "refuse" our audit request before. Two of our huge customers insisted they audit this supplier and the supplier claimed, rightly so, that he can't spend 1/2 day for every one of our customers that wants to walk through his facility. They're an important supplier to us, but we're pretty small to them.

We convinced the two huge customers to do their walk through at the same time and the supplier agreed. If it had come down to it, I imagine we would have offered to pay the supplier for his time. I'm glad it didn't come down to that.

Incidentally, it was fascinating to watch two senior quality guys from different companies get the information that was important to them. Somebody in that room was in over his head (and it was probably me).
 

Jim Wynne

Staff member
Admin
#15
I had a supplier "refuse" our audit request before. Two of our huge customers insisted they audit this supplier and the supplier claimed, rightly so, that he can't spend 1/2 day for every one of our customers that wants to walk through his facility. They're an important supplier to us, but we're pretty small to them.

We convinced the two huge customers to do their walk through at the same time and the supplier agreed. If it had come down to it, I imagine we would have offered to pay the supplier for his time. I'm glad it didn't come down to that.

Incidentally, it was fascinating to watch two senior quality guys from different companies get the information that was important to them. Somebody in that room was in over his head (and it was probably me).
I can't imagine what could ever cause me to believe that auditing suppliers two levels down the chain would be a good idea, or useful in any way unless something terribly wrong were going on.
 
D

dkusleika

#16
Good point; I never thought of it that way. We make circuit boards and they do the wave soldering. I guess our customers think it's important enough. We never push back because this particular supplier has outstanding quality and an immaculate, modern facility, and knowledgeable employees that never fail to impress. They simply make us look better.
 
J

JaneB

#17
Bottom line: don't just agree to every request automatically.

Consider each request, determine if it's reasonable, 'worth' it (whether that be financially, customer niceness factor, commercial factors etc etc) and whether there are any other factors at play. Treat each request on its merits.
:topic:
Incidentally, I was interested to hear from you about the numbers of 'supplier audit requests' that 'just happen' to go south in winter-time/on either side of a holiday... Fancy that. Here it would be (presumably) customers wanting to go north to Brisbane/Gold Coast etc. In fact, given how particularly cold this winter has been (to us! not to you who live with snow and ice!) I'd be inclined to do the same.
 

Wes Bucey

Quite Involved in Discussions
#18
FWIW:
To my way of thinking, ANY customer audit needs to be thought through by each party BEFORE making and agreeing to the appointment:

  1. is the product off-the-shelf? Don't waste anyone's time - the product speaks for itself.
  2. is the custom part critical to the customer or sole source? Maybe, but read on.
  3. is the order significant in size to the supplier? If this order and/or total business of customer to this supplier is less than 1% of annual supplier business, there had better be an important issue to be resolved - probably something that does not require a formal audit (as we normally think of audits here in the Cove), and might be handled with a brief visit to the segment/department of the supplier concerned with that issue.
  4. is a supplier audit a routine for every supplier (big or small) by this customer? This customer probably needs a "Dutch Uncle" to gain perspective on the economics of such a routine.

On the matter of saying, "No!" by a supplier:
If the decision is based on the economics, do not be afraid to state that as a reason. (The truth shall set you free!)

If the customer (especially a mere "prospect") persists, state a fee to provide just compensation.
 
J
#19
I have to admit that Wes's suggestion of charging a fee for a customer (or potential customer) to perform an audit is novel....Gee this could turn QA into a moneymaker...:cool:

I couldn't help but think of how the banks look for ways to charge fees on things...:notme:

Peace
James
 

Wes Bucey

Quite Involved in Discussions
#20
I have to admit that Wes's suggestion of charging a fee for a customer (or potential customer) to perform an audit is novel....Gee this could turn QA into a moneymaker...:cool:

I couldn't help but think of how the banks look for ways to charge fees on things...:notme:

Peace
James
In my machining business, I sometimes charged a fee to quote a part (labeled "engineering fee") and had no trouble collecting. This was for new and existing customers who had VERY complicated parts. Mostly, though, we followed the routine I outlined in another thread
see these three posts, all in the same thread
( Quality Information Point - Quality information for operators and technician)
Wes Bucey on an efficient shop - empowerment (This is a single post (#18) in a longer thread - the url leads directly to the post - it is associated with a follow-up in post #20)
http://elsmar.com/Forums/showpost.ph...9&postcount=18
Wes Bucey on quoting and empowerment (This is a single post (#20) in a longer thread - the url leads directly to the post)
http://elsmar.com/Forums/showpost.ph...6&postcount=20

See also post #23 in the same thread, elaborating on the theme
Up front engineering costs - golden handcuffs for customers

http://elsmar.com/Forums/showpost.ph...8&postcount=23
 
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