2nd Party Audits
Companies worldwide are continuously looking for ways to reduce cost and improve quality. Vast numbers of manufacturers who historically relied on domestic materials procurement are currently re-examining their supply systems and looking overseas to expand their range of potential suppliers. Suppliers must maintain long-term quality and on time delivery of critical parts. Therefore, a robust system must be established to develop, qualify and monitor the supply base.
The 2nd party audit is a valuable tool for supplier management, sourcing high quality new parts and assemblies and building a robust supplier base. Implementing and maintaining an effective 2nd party auditing process is no small task and requires highly skilled experienced auditors and a strong auditing plan to be successful. At Cyber Tiger, we can provide the guidance and support needed to develop an effective robust 2nd party auditing process for your organization.
Second Party Audits are also referred to as external or supplier audits. The 2nd party audit is usually more formal than an internal or 1st party audit. In some instances, the results of the audit could influence future purchasing decisions. The audits may also be in response to one or more quality issues with the supplier’s parts or assemblies. There often is a contract involved between the customer and supplier specifying the terms of delivery, pricing, packaging, quality requirements and various additional terms. For this reason, second party audits are generally subject to rules and regulations concerning contract law.
Why Perform 2nd Party Audits (Consultant)
Performance of 2nd Party audits can result from various circumstances. An external audit may be performed when an organization is:
- Developing a new product and determining sourcing for sub-components
- Approving a new supplier for sourcing of current parts or commodities
- Exploring alternate sources of parts during a cost reduction effort
- Investigating a quality issue with the supplier’s product
- Confirming completion of corrective actions from a past quality issue
- Performing a review or maintenance audit as part of a supplier management process
The 2nd party audit is a valuable tool for strengthening a company’s supply chain through verification that all current and future suppliers meet or exceed pre-determined requirements. One of the primary objectives of a rigorous supplier audit system is to prevent any quality issues from reaching your customer. In addition, the audit can be used to assure the supplier can deliver the quantities of parts to meet demand. A well planned 2nd party or supplier audit system helps assure that quality parts are received on time and every time. Not long ago it was revealed that even “benchmark” companies can experience a supplier quality issue. The benefits of 2nd party audits as part of an effective supplier management system far outweigh the possible costs involved with product recalls, field campaigns, and loss of brand equity.
As part of our 2nd Party Audit Consulting Services, one of our Subject Matter Experts (SME) will:
- Review your current auditing process and available resources to identify your specific needs
- Assist in developing a comprehensive plan to implement and maintain an effective 2nd party audit system designed specifically for your organization
- Discuss your objectives and provide direction toward achieving your goals
- Aid in the development of any required documentation and procedures
- Mentor the leadership and audit teams to increase your rate of success
A well planned and effective 2nd party audit system is vital for developing and managing a strong supplier base. Development and implementation of a robust 2nd party audit system requires a substantial investment of time, talent and resources. There are times you will need additional resources, and need them right now. Unfortunately, it takes time to hire the right personnel. What you need are SMEs with the technical expertise, specific to your industry, ready to jump in and hit the ground running. Cyber Tiger is renowned as an industry leader in providing contract services for short or long term projects.