Customer wants to audit my supplier...
Discussion
A customer wants to audit my supplier (a factory in Turkey) to ensure they adhere to their standards set for their supply chain.
Our contract states that we need to be transparent, allow access and also evidence steps we take to ensure min wage laws etc are enforced.
However, if I give them the factory details to audit - how can I stop them dealing direct? Trust? Can I agree something with the factory? (I know how that would pan out if we stopped using that factory!) Has anyone had to do this and how did it end?
Our contract states that we need to be transparent, allow access and also evidence steps we take to ensure min wage laws etc are enforced.
However, if I give them the factory details to audit - how can I stop them dealing direct? Trust? Can I agree something with the factory? (I know how that would pan out if we stopped using that factory!) Has anyone had to do this and how did it end?
VEIGHT said:
Thanks for the reply.
They want to send an auditor to the factory to inspect it. All they want from me is the name and address.
How do I ensure they don't deal direct with them after I tell them who I use?
I'd say you can't, but I guess it depends on your relationship with your supplier.They want to send an auditor to the factory to inspect it. All they want from me is the name and address.
How do I ensure they don't deal direct with them after I tell them who I use?
VEIGHT said:
Thanks for the reply.
They want to send an auditor to the factory to inspect it. All they want from me is the name and address.
How do I ensure they don't deal direct with them after I tell them who I use?
Either you're adding value to the contract or you're not.They want to send an auditor to the factory to inspect it. All they want from me is the name and address.
How do I ensure they don't deal direct with them after I tell them who I use?
If you're adding value, then why would they? They want to deal with you and what you bring to the deal.
If you're not.........?
JonChalk said:
Either you're adding value to the contract or you're not.
If you're adding value, then why would they? They want to deal with you and what you bring to the deal.
If you're not.........?
What he's added is (at least) that he's found a supplier of product they want. They could go and find their own supplier...If you're adding value, then why would they? They want to deal with you and what you bring to the deal.
If you're not.........?
VEIGHT said:
Thanks for the reply.
They want to send an auditor to the factory to inspect it. All they want from me is the name and address.
How do I ensure they don't deal direct with them after I tell them who I use?
Is it someone from their company or an independent / industry accredited auditor?They want to send an auditor to the factory to inspect it. All they want from me is the name and address.
How do I ensure they don't deal direct with them after I tell them who I use?
If the latter, it is much less worrisome.
How quickly can you get yourself ISO 9001 certified?
https://www.iso.org/iso-9001-quality-management.ht...
Then show them the certificate.
https://www.iso.org/iso-9001-quality-management.ht...
Then show them the certificate.
VEIGHT said:
A customer wants to audit my supplier (a factory in Turkey) to ensure they adhere to their standards set for their supply chain.
Our contract states that we need to be transparent, allow access and also evidence steps we take to ensure min wage laws etc are enforced.
However, if I give them the factory details to audit - how can I stop them dealing direct? Trust? Can I agree something with the factory? (I know how that would pan out if we stopped using that factory!) Has anyone had to do this and how did it end?
I assume you already doing your own assurance on the supplier including site visits, iso compliance etc.? If so, pass them the documentation. Our contract states that we need to be transparent, allow access and also evidence steps we take to ensure min wage laws etc are enforced.
However, if I give them the factory details to audit - how can I stop them dealing direct? Trust? Can I agree something with the factory? (I know how that would pan out if we stopped using that factory!) Has anyone had to do this and how did it end?
If not, firstly, you need to - and this does not mean placing reliance on their outputs or controls. Secondly, I am not surprised (what appears to be a) a large commercial company requires assurance of its supply chain - particularly if its the type of product that could have issues in the chain.
What stage of the contract are you in? Early, late etc? This will impact how you can respond.
Thanks for all of the replies. Gives me some different ways to approach this from.
To answer a few questions the relationship is around 10 years old so not new business. Some of the factories are 9001 accredited, some are not. We have visited nearly all of the factories we use however some are huge and have lot's of processes in place. Others are tiny and it's difficult to investigate past what they are willing to share / show you.
The auditors are a big independant (although being paid by customer) firm, so that as someone says could be a positive.
I'll also look into our own accreditations too moving forward! Thanks for the help.
To answer a few questions the relationship is around 10 years old so not new business. Some of the factories are 9001 accredited, some are not. We have visited nearly all of the factories we use however some are huge and have lot's of processes in place. Others are tiny and it's difficult to investigate past what they are willing to share / show you.
The auditors are a big independant (although being paid by customer) firm, so that as someone says could be a positive.
I'll also look into our own accreditations too moving forward! Thanks for the help.
VEIGHT said:
Thanks for all of the replies. Gives me some different ways to approach this from.
To answer a few questions the relationship is around 10 years old so not new business. Some of the factories are 9001 accredited, some are not. We have visited nearly all of the factories we use however some are huge and have lot's of processes in place. Others are tiny and it's difficult to investigate past what they are willing to share / show you.
The auditors are a big independant (although being paid by customer) firm, so that as someone says could be a positive.
I'll also look into our own accreditations too moving forward! Thanks for the help.
A friend of mine is a supply chain auditor. He used to work for a large auditing company but was so busy working for them he’s decided to branch out on his own, goes all over the world doing it. To answer a few questions the relationship is around 10 years old so not new business. Some of the factories are 9001 accredited, some are not. We have visited nearly all of the factories we use however some are huge and have lot's of processes in place. Others are tiny and it's difficult to investigate past what they are willing to share / show you.
The auditors are a big independant (although being paid by customer) firm, so that as someone says could be a positive.
I'll also look into our own accreditations too moving forward! Thanks for the help.
All his clients are major corporations where their prime motivation is a tick in the box to say that they’ve audited their supply chain, to mitigate the risk of them ending up on the front page of the Sunday broadsheets as a company engaging (albeit unwittingly) in human slavery. It’s all about protection from reputational harm.
This is a big corporate topic. I’m a freelancer to a major blue chip, but I had to go on a mandatorily Human Slavery training course last week, as they deemed that everyone in their operations needs to be aware of this, so that they minimise risk of exposure to it. Obvs there were plenty of quips about us IT bods and our day rates.
I’d say this probably falls into that category and they hopefully don’t want to pinch your supplier. My pal has never heard of any commissioning client ever ‘going direct’ as a result of his audit, although there is plenty ‘cease with this supplier unless they improve X, Y and Z’ because he unearths quite a few shady practices. ‘Auditing’ sounds a very boring profession but he has some tales to make your hair curl. I’m actually looking forward to a post-pandemic pint with him to hear tales from his latest travels.
VEIGHT said:
A customer wants to audit my supplier (a factory in Turkey) to ensure they adhere to their standards set for their supply chain.
Our contract states that we need to be transparent, allow access and also evidence steps we take to ensure min wage laws etc are enforced.
However, if I give them the factory details to audit - how can I stop them dealing direct? Trust? Can I agree something with the factory? (I know how that would pan out if we stopped using that factory!) Has anyone had to do this and how did it end?
Limitations on them going direct should also be in your contract given your transparency clause.Our contract states that we need to be transparent, allow access and also evidence steps we take to ensure min wage laws etc are enforced.
However, if I give them the factory details to audit - how can I stop them dealing direct? Trust? Can I agree something with the factory? (I know how that would pan out if we stopped using that factory!) Has anyone had to do this and how did it end?
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