A second-party audit – like first and third-party audits – is essential to maintaining the quality of our operations. Without it, we often cannot properly assess the quality of our suppliers or correctly understand the characteristics of what our companies purchase and consume.
A good second-party audit will help your company ensure that suppliers maintain predefined quality standards, as well as help identify and mitigate risks related to supply failures and even compliance issues. All of this, of course, ensures that our suppliers’ processes are efficient and, more importantly, capable of consistently delivering products or services.
Additionally, when properly executed, this type of audit helps build stronger, more collaborative relationships with suppliers. They not only provide constructive feedback but also offer opportunities for improvement and benchmarking. In short: everyone wins!
However, this is also a delicate, critical moment that requires a lot of attention and planning. It tests not only the supplier’s processes but also our ability to evaluate them. Therefore, in today’s article, we decided to bring you tips on how to conduct a good second-party audit, generating positive results for all stakeholders. Let’s get to the content?
Before we get to the tips, let’s quickly review the types of audits and the focus of each one. Basically, there are three types of audits:
This process should be conducted with seriousness and professionalism, always aiming for good results for both parties. Here are some tips that can help achieve the objectives of the audit. Let’s look at some best practices:
Failing in any of the previously suggested points can lead to problems during your audit. For example, if planning is crucial, the lack of it can cause many errors and be catastrophic.
However, there are some things we can avoid that can make a big difference in the results of the process. These are vital aspects that often go unnoticed. Let’s take a look!
Professionalism ensures that the audit is conducted impartially, fairly, and efficiently. Auditors must be well-prepared, with a deep understanding of the audit criteria, the expectations of both parties, and the applicable standards. They need to be objective and base their conclusions on concrete evidence, avoiding any personal influence that could compromise the integrity of the audit.
Collaboration is equally crucial. A second-party audit involves evaluating suppliers or partners, and a collaborative approach can turn the process into an improvement opportunity for both parties. By clearly communicating the purpose, scope, and criteria of the audit, auditors foster an environment of transparency and trust. This open communication helps to alleviate any tension or resistance from the supplier, who can see the audit as a chance to demonstrate their capabilities and identify areas for improvement.
When professionalism and collaboration guide the process, a win-win relationship materializes, allowing the company and supplier to grow together, resolve issues, manage risks, and ensure that deliveries meet the agreed-upon standards. In this way, the audit ceases to be a moment of stress and fear and becomes a moment of communication and strengthening for all involved.
A good second-party audit will help your company ensure that suppliers maintain predefined quality standards, as well as help identify and mitigate risks related to supply failures and even compliance issues. All of this, of course, ensures that our suppliers’ processes are efficient and, more importantly, capable of consistently delivering products or services.
Additionally, when properly executed, this type of audit helps build stronger, more collaborative relationships with suppliers. They not only provide constructive feedback but also offer opportunities for improvement and benchmarking. In short: everyone wins!
However, this is also a delicate, critical moment that requires a lot of attention and planning. It tests not only the supplier’s processes but also our ability to evaluate them. Therefore, in today’s article, we decided to bring you tips on how to conduct a good second-party audit, generating positive results for all stakeholders. Let’s get to the content?
Reviewing Types of Audits
Before we get to the tips, let’s quickly review the types of audits and the focus of each one. Basically, there are three types of audits:
- First-Party Audit: Also known as an internal audit, it is conducted by the organization itself on its processes and operations. The goal is to assess compliance with internal standards and procedures and identify opportunities for improvement;
- Second-Party Audit: Conducted by an organization on its suppliers or partners to verify compliance with the contracting organization’s specific requirements. This is our focus for today’s content;
- Third-Party Audit: Conducted by an external and independent entity (certification body) to assess compliance with international standards, such as ISO 9001 or ISO 14001.
Tips for Conducting a Second-Party Audit
This process should be conducted with seriousness and professionalism, always aiming for good results for both parties. Here are some tips that can help achieve the objectives of the audit. Let’s look at some best practices:
- Don’t Skimp on Planning: For any audit, it is essential to define objectives, evaluation criteria, and necessary documents. In second-party audits, this is even more crucial because it’s easy to lose focus on what really affects the deliveries our company receives when dealing with the supplier’s processes. Therefore, clearly define the scope and what needs to be evaluated within it;
- Maintain Clear Communication: Always inform the supplier about the purpose and scope of the audit to avoid mistrust and make the process clearer and more transparent. Additionally, communicate in a simple, clear, and objective manner, ensuring that professionalism is maintained;
- Use Checklists and Don’t Forget Documentation: Using detailed checklists will help you focus on the predefined items in the scope and ensure you ask the right questions. Also, remember to document all evidence, which will help later in writing the audit report;
- Focus on Interviews and Observation: Some preparations can be done remotely, but visiting the company is essential. Organize structured interviews with good questions. Observing field operations, in addition to the interviews, can provide valuable insights;
- Write a Good Audit Report: The audit report is the final output of the process. It will contain all relevant information, such as non-conformities and strengths. Therefore, write a clear, objective, and impartial report, highlighting positive points and areas for improvement. Focus on understanding the supplier’s capability while also providing suggestions for process improvements;
- Follow-Up Can Be Beneficial: In some cases, it may be necessary to follow up on the audit results. In these cases, establish a joint action plan with the supplier and monitor the implementation of improvements. This can be very beneficial for both companies.
Possible Errors in Second-Party Audits
Failing in any of the previously suggested points can lead to problems during your audit. For example, if planning is crucial, the lack of it can cause many errors and be catastrophic.
However, there are some things we can avoid that can make a big difference in the results of the process. These are vital aspects that often go unnoticed. Let’s take a look!
- Excessive Interruptions in the Supplier’s Process: The goal of a second-party audit is to ensure that the supplier is capable of providing the contracted product or service. Thus, preventing them from doing so would be at least strange. Some level of interruption is inevitable, but avoid excessively disrupting the supplier’s operations during the audit. Similarly, pay attention to necessary procedures and routines, such as the use of PPE or other internal codes;
- Exclusive Focus on Non-Conformities: To understand delivery capability, we need to comprehend the process as a whole! Therefore, do not focus all your attention solely on failures; don’t conduct a “witch hunt,” but also recognize strengths and best practices. This is fundamental!
- Ignoring the Auditee’s Perceptions: Do not ignore the concerns or explanations provided by the supplier. This is important not only to ensure a better relationship but also to understand how they are managing their system and processes. A major problem might be being resolved, or a risk may already have been mapped out, making a significant difference in long-term sustainability – for them and your company;
- Confrontational and Disrespectful Attitude: The era of harsh auditors is over. Avoid an aggressive, confrontational approach. This can hinder collaboration and the relationship with the supplier, negatively affecting deliveries and even creating non-conformities. Maintain seriousness and professionalism, fostering a firm yet cordial relationship.
Professionalism and Collaboration Above All
Professionalism ensures that the audit is conducted impartially, fairly, and efficiently. Auditors must be well-prepared, with a deep understanding of the audit criteria, the expectations of both parties, and the applicable standards. They need to be objective and base their conclusions on concrete evidence, avoiding any personal influence that could compromise the integrity of the audit.
Collaboration is equally crucial. A second-party audit involves evaluating suppliers or partners, and a collaborative approach can turn the process into an improvement opportunity for both parties. By clearly communicating the purpose, scope, and criteria of the audit, auditors foster an environment of transparency and trust. This open communication helps to alleviate any tension or resistance from the supplier, who can see the audit as a chance to demonstrate their capabilities and identify areas for improvement.
When professionalism and collaboration guide the process, a win-win relationship materializes, allowing the company and supplier to grow together, resolve issues, manage risks, and ensure that deliveries meet the agreed-upon standards. In this way, the audit ceases to be a moment of stress and fear and becomes a moment of communication and strengthening for all involved.
