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Basics of Vendor and Audit Evaluation

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Over the last two decades, various industries worldwide are experiencing huge growth. With the rapid progression, the market is also becoming competitive with each passing day. The high quality of the particular product is an important thing for the success of the company’s quality control process. Therefore, the quality contracts by vendors are important. In order to achieve the company’s goal using the quality control function, it is important to publish guidelines and procedures for the approval, evaluation, and auditing of shipment from the manufacturers.

Basics of Vendor and Audit Evaluation

Moreover, these days industries have realized that evaluation and audits of a supplier company should be considered as an important part of assessing any type of company or industry. The routine of the entire industry depends on the kind of material supplied for manufacturing. These raw materials will then be used to make the final end product. Therefore, it is important to give the guarantee to the supplier company who supplies raw material of high quality and standards and the materials they supply should follow all the industry standards and policies. Great quality products are becoming standards and reliable end-user products that can satisfy the customers.

Types of Vendors

The evaluation of any quality program is always performed in collaboration with vendor-vendee activity. All these should be achieved efficiently, as it provides mutual benefits to all the parties concerned. The vendor company should evaluate their existing process effectively and efficiently. The vendee should check the quality program of the vendor and look whether the vendor will be able to produce the product of the desired quality.

In addition, the vendor company should establish a ranking system by providing a numerical value. This value will be assigned to each vendor, should be recognized and can be used as the basis for remedial action and comparisons of vendors within the vendee’s company. The vendee’s should develop a comprehensive audit solution to cover all aspects of production, and operation, either within the organization or by hiring an factory audit company. The main purpose of performing quality audits is to guarantee the production of the product is according to program requirements mentioned in the quality assurance documentation.

Moreover, the management of vendor is important for the company because it provides excellent services, improves cash flow, improves the reliability of supply, and helps in removing dependencies on capital assets and provide latest technology trends.

Management of Vendor

Evaluation of Vendor

There are three methods to conduct the evaluation of the vendors. They are as follows:

• After the Fact Evaluation

• Informal Use of Records

• Before the Fact Designed

• After the Fact Evaluation

When an event has occurred, the manager can ask the question like what has happened? How did it happen? Why did it succeed? Or why the product failed? How well did it perform? Answers to such questions give analysis for decision and future planning after an event has occurred.

• Informal Use of Record

In this type of evaluation of the vendor, data is gathered from various sources like diaries, journals, financial records, or log books, and analyze what has happened in the past allow the auditors or quality inspection companies to evaluate an event in order to make best decisions for the future.

• Before the Fact Designed

In this kind of evaluation of vendors, the evaluators plan and collect the data early of the previous project. Evaluation of vendor capabilities is one such example.

According to a recent survey, the survey of the vendor and determining the capability is an important task for the buyer companies to find out, well in advance, the capability of the vendor company to produce high-quality products on time. Large businesses hold their suppliers and buyers and consider them as their partners to help in their business. It is considered a beneficial partnership. If a supplier or vendor is important part for your business operation than you should invite them for strategic meetings that include the product they are working on.