EVALUATION, MONITORING AND AUDITING OF SUPPLIERS IN SUPPLY CHAIN MANAGEMENT

Abstract

In the global market, the supply chain performances have a significant impact on the company’s business strategy. The quality requirements that must be followed by suppliers require permanent monitoring of processes of design, development, production, installation and service of products through audits qualified based on supply chain management. This paper presents an analysis of the supplier qualification process including the main phases as follows: evaluation, monitoring and auditing of suppliers in supply chain management. Internal quality audits and/or suppliers are one of the key instruments for ensuring sustainability and performance in supply chain management. Auditing of suppliers is a core component of the modern management of suppliers, with the help of which the customer can analyze precisely relevant processes to existing or potential suppliers. Supplier audits help both commercial partners to increase the transparency of the supply chain and also simplify supplier selection, evaluation, monitoring and development. The suppliers must meet the highest quality standards for products and processes. The main purpose of this paper is to give a general view of the supplier qualification process which involves the steps from initial identification until the inclusion of the supplier in the Approved Supplier List (LST). This list should be managed in such way that a complete traceability is assured. Following the proposed qualification diagram the customer can obtain an image about the status of one supplier, can also identify the weak points considering the evaluation, monitoring and audit class.