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Second Party Audit

Second party audits are called external audits. It is usually done by customers or by others parties

A second-party audit, also known as a supplier or factory audit, is essential for organizations to develop a robust supplier management and control system, ensuring a strong supplier base. In the face of globalization, geopolitical shifts, changes in supply chains, short product life cycles, and rapidly evolving market conditions, organizations encounter significant supply chain management challenges.

Second-party audits help our clients and their suppliers mitigate risks, uphold high standards in quality and safety, and comply with regulatory requirements and contractual obligations. Non-compliant suppliers can severely impact an organization’s profitability, brand reputation, and stakeholder confidence.

Our supplier audit program and data platform provide our clients with global visibility into their suppliers' performance, enhancing confidence in their suppliers’ work. We offer specialized expertise to address various supply chain challenges.

Our global network of auditors, fluent in the local languages and knowledgeable about the local market's culture and legal requirements, supports clients across the entire supply chain. This capability helps reduce risks, protect brands, decrease defects, build consumer trust, and accelerate time to market.

Need for a Second-Party Audit?

Organizations conduct second-party audits for several critical reasons:

  • New Product Development or Material Sourcing

    When launching a new product or seeking new materials, ensuring the supplier meets required standards is essential.

  • Cost Reduction Initiatives

    During efforts to reduce costs, exploring alternative supply sources requires thorough evaluation to maintain quality and compliance.

  • Supplier Evaluation and Approval

    Before approving a new supplier, a detailed audit verifies their capability and reliability.

  • Quality or Safety Compliance Investigation

    If there are concerns about the quality or safety of a supplier’s product, an audit helps identify and address issues.

  • Corrective Action Verification

    To confirm that corrective actions from previous non-compliance issues have been effectively implemented.

  • Routine Surveillance or Maintenance

    Regular audits as part of an ongoing supplier management program ensure continuous compliance and performance standards.

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