In order to maintain a sustainable and competitive business, you should always consider the risks related to your supply chain. If key suppliers do not have the capability or capacity to support your current business or future growth plans, it can have a significant impact and devastating effect on your organisation. In the existing era of increased competitiveness, systematic and detailed supplier audits hold a paramount value in assuring the reliability of supply chain. There is no doubt the compliance, strength, and competence of organisations comes down to their supply chain and how they manage it.
Supplier Evaluation
Within the ISO 9001 standard covering quality management, supplier evaluation is covered under clause 8.4 (Control of externally provided processes, products and services). A well-managed supply chain can offer real advantages for an organisation and improve quality, cost and delivery of products and services. Using a supplier evaluation form for ISO 9001 which often is referred to as a PQQ (Pre-Qualification Questionnaire), is an initial step to reduce risks prior to starting using a supplier. As part of supplier evaluation, supplier audits can be used in addition to the PQQ for high risk or critical suppliers.
Supplier Evaluation Form for Selection
As stated earlier, it is a requirement by ISO 9001 that organisations implement a mechanism where they evaluate their suppliers and that it should be based on risk. To do so, you can use an efficient supplier evaluation form for ISO 9001. The evaluation form can be used for a range of supplier tendering for work on a project, as part of the selection process where the most qualified one is selected.
An organisations supplier evaluation form for ISO 9001 should be tailored around what is important for the business. For example, it could include elements related to certain certifications, environmental initiatives, or their approach to health & safety amongst others.
Another key factor to clearly define for the supplier evaluation process is who the responsibility sits with. For example, who decides when a supplier evaluation form for ISO 9001 should be used and who validates what is and is not acceptable.
The format of a supplier evaluation form or PQQ as it often is referred to, is a checklist of all the elements that are crucial for the organisation to deliver their products and services. Having a standardised form also makes it easier to compare potential suppliers and subcontractors during the selection process.
Ongoing Supplier Evaluation
The supplier evaluation does not end ones a supplier has been selected and should be continued throughout the time working with a supplier. Here it is up to the organisation to determine the level of supplier evaluation that is required and to what extent.
Ongoing evaluation could be for the key suppliers to complete the supplier evaluation form for ISO 9001 on an annual basis, to determine if there have been any changes. However, there are many additional tools that can be used as part of ongoing evaluation of suppliers.
These include, but are not limited to, the following.
- Approved Suppliers Register: This is a register where all of the approved suppliers and subcontractors are listed, to ensure only ones that are formally approved can be used.
- Supplier Evaluation Form: This form can be used after a delivery or a project to evaluate a supplier or subcontractor. This evaluation form can then be used on future projects to determine if a given supplier or subcontractor would be the right fit.
- Supplier audits: These audits can be extremely affective in determining how a company is structured and if they comply with all the legal and contractual requirements.
- Formal Review: This is a formal review of the key suppliers within the supply chain and should be conducted by the relevant stakeholders.
If you need to develop a procedure to evaluate suppliers, then our Supplier Pre-Qualification Questionnaire might be of interest to you.
Alternatively, if you are looking for documentation for a full management system, then you might be interested in our Management System Packages which include a range of documents at a cost-effective price.
