Supplier and Third-Party Auditing

Operational Auditing and Quality Assurance October 25, 2025
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Introduction

This specialized course addresses the unique challenges and requirements of auditing suppliers and third-party service providers. Participants will learn how to assess vendor capabilities, evaluate supply chain risks, and ensure that external partners meet organizational standards and requirements. The course covers supplier selection criteria, audit planning for external entities, remote auditing techniques, and relationship management strategies. Through practical case studies and industry examples, attendees will develop skills to effectively manage supplier quality and performance while maintaining positive business relationships. Effective supplier auditing is critical for managing extended enterprise risks and ensuring supply chain resilience.

Objectives

Upon completion of this course, participants will be able to:

  • Develop supplier audit programs based on risk assessment
  • Apply appropriate supplier selection and evaluation criteria
  • Plan and conduct effective supplier audits
  • Utilize remote auditing techniques and tools
  • Evaluate supplier quality management systems
  • Assess supply chain risks and vulnerabilities
  • Communicate audit findings and expectations to suppliers
  • Monitor supplier performance and improvement activities
  • Manage supplier relationships and development programs
  • Ensure regulatory and compliance requirements throughout supply chain

Target Audience

  • Supplier quality auditors
  • Procurement and sourcing professionals
  • Supply chain managers
  • Vendor management staff
  • Quality assurance professionals
  • Internal auditors with supply chain responsibilities
  • Risk management professionals
  • Compliance officers

Methodology

  • Case studies on supplier audit scenarios
  • Practical risk assessment workshops
  • Role-playing supplier communication scenarios
  • Remote audit simulation exercises
  • Group discussions on supply chain challenges
  • Individual exercises on supplier evaluation
  • Real-world supplier performance analysis

Personal Impact

  • Enhanced risk assessment and analysis capabilities
  • Improved communication and negotiation skills
  • Stronger relationship management abilities
  • Better understanding of supply chain dynamics
  • Increased cultural awareness and sensitivity
  • Enhanced technical knowledge of various industries

Organizational Impact

  • Improved supplier quality and performance
  • Reduced supply chain disruptions and risks
  • Better cost management through supplier performance
  • Enhanced compliance throughout supply chain
  • Stronger supplier relationships and partnerships
  • Continuous improvement in supply chain operations

Course Outline

Unit 1: Supplier Management Fundamentals

Supply Chain Concepts
  • Supply chain structures and relationships
  • Supplier categorization and criticality assessment
  • Regulatory requirements for supplier management
  • Industry-specific supply chain considerations
Supplier Selection and Qualification
  • Supplier evaluation criteria and methods
  • Pre-qualification assessments and surveys
  • Capability analysis and capacity evaluation
  • Initial supplier audits and assessments

Unit 2: Supplier Risk Assessment

Risk Identification
  • Supply chain risk categories and factors
  • Geopolitical and economic risk considerations
  • Single-source and dependency risks
  • Financial stability and business continuity risks
Risk Evaluation and Prioritization
  • Risk scoring and ranking methodologies
  • Criticality analysis for supplier prioritization
  • Developing risk-based audit schedules
  • Continuous risk monitoring approaches

Unit 3: Supplier Audit Planning

Audit Program Development
  • Developing the supplier audit program
  • Determining audit scope and objectives
  • Selecting appropriate audit criteria and standards
  • Resource planning and budget considerations
Logistics and Preparation
  • Scheduling and coordinating supplier audits
  • Communication protocols with suppliers
  • Cultural and international considerations
  • Pre-audit documentation review

Unit 4: Conducting Supplier Audits

On-site Audit Techniques
  • Supplier facility assessment methods
  • Process capability evaluation
  • Quality system documentation review
  • Performance metric validation
Remote Auditing Methods
  • Virtual audit planning and preparation
  • Digital tools and platforms for remote auditing
  • Document sharing and electronic evidence review
  • Video conferencing and virtual facility tours

Unit 5: Supplier Performance Management

Findings and Reporting
  • Developing supplier audit reports
  • Communicating findings and expectations
  • Supplier corrective action requests
  • Performance rating and scorecard development
Relationship Management
  • Supplier development and improvement programs
  • Performance monitoring and trend analysis
  • Contract compliance verification
  • Supplier recognition and certification programs

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