Second party audit is a comprehensive review of suppliers that provides assurance for a business’s supply chain. It is customized to meet specific client needs and is conducted by competent personnel. The process of a second party audit is based on ISO 19011:2018 codes of ethical behaviour. Since not every organization has high standards for quality, it is vital that companies have a quality framework in place to manage and ensure supplier quality. In addition to the ISO 19011:2018 code of ethical behaviour, the second party audit will assess suppliers based on their process capability and capacity.
The second party audit can focus on any aspect of an organization’s operations, from its policies and processes to its products and services. While nothing can be completely excluded, it is crucial that an organization takes action on any audit findings to ensure that it is a success. Some areas to look at include the ISO family of international management standards, discrete traditional management practices, environmental management, occupational safety, strategic planning, statistical process control, risk management, and performance measurement and improvement.
Another type of second party audit is conducted by company auditors. These are usually employees of the customer, and they face the same issues as third-party auditors. But they also have the added pressure of internal pressure from within their own organisation, which reduces their added value. The audit can be conducted by a third-party or even by the customer themselves. When the third-party audit involves external parties, it is crucial to hire the right company.
An organization can perform a first party audit to determine its strengths and weaknesses. Its purpose is to identify any weaknesses in its management system and determine whether or not they are in compliance with the appropriate standards and procedures. A first party audit, however, is conducted by employees of an organization; it is an internal audit. The auditors performing a second-party audit are independent, unrelated, and have no vested interest in the organization’s performance.
Another important role for the second party auditor is to verify whether the goals and objectives of the contractor are aligned with those of the DoD. Without these, the contractor is unlikely to meet the objectives and meet the goals. The best way to ensure that the goals and objectives of the project are met is to create a Plan of Action and Milestones (POA&M), which outlines important completion dates, responsible individuals, and follow-up strategies. These POA&Ms should also include objective metrics that can be measured as part of the second party audit.
While quality management system certification is a vital part of supplier approval, a second party audit can enhance the company’s supply chain and help to mitigate risks. Regardless of the business model, a second party audit is an effective way to ensure the quality of your suppliers’ products and services. In addition, a second-party audit is an ideal way to ensure the quality and consistency of your suppliers’ processes. The ISO 9001 standard, meanwhile, can help you identify risks in your supply chain.
