The Procurement Glossary » Supplier Audit
Supplier Audit
Suppliers & Vendors
Definition
A formal on-site or documentary review of a supplier's processes, quality systems or compliance.
Explanation
Audits verify that a supplier actually operates as claimed — quality controls, ethical practices, security or safety. They are used at qualification and periodically for high-risk suppliers, and drive corrective actions where gaps are found.
Example
A social-compliance audit of the overseas factory checks working hours, safety and wage records.
Related terms
- Due Diligence — The investigation of a supplier's legitimacy, capability, financial health and compliance before engaging it.
- Corrective Action Request (CAR) — A formal request asking a supplier to investigate a problem, fix its root cause and prevent recurrence.
- Quality Assurance (QA) — The proactive processes that ensure goods and services will meet required quality standards.
- Procurement Compliance — Adherence to the policies, contracts, laws and controls that govern how an organisation buys.
Frequently Asked Questions
What is Supplier Audit?
A formal on-site or documentary review of a supplier's processes, quality systems or compliance. Audits verify that a supplier actually operates as claimed — quality controls, ethical practices, security or safety. They are used at qualification and periodically for high-risk suppliers, and drive corrective actions where gaps are found.
Can you give an example of Supplier Audit?
A social-compliance audit of the overseas factory checks working hours, safety and wage records.
Back to the procurement glossary | Procurement concepts | Contact us