Auditing Purchasing - 8.4 Control of Externally Provided Processes, Products, and Services
In the last blog we introduced section 8.4.1 of ISO 9001:2015 (and AS9100D, AS9120B). In this blog we’re still discussing section 8.4.1 but are now turning our attention from the types of products and services requiring controls to the process of evaluation and selection of external providers.
Criteria for evaluation and selection
Evaluating and selecting external providers is a fairly straightforward task. Think about what drives your purchasing decisions when you’re using your own money. The same criteria make sense for a company seeking or maintaining their ISO 9001 and AS9100/AS9120 certification. Here are some common-sense selection factors:
- Capability: First and foremost, assess whether the supplier can provide the specific products or services you need. Ensure they also offer all necessary services, warranties, and relevant information. If they fall short in any of these areas, it’s best to move on to other options.
- Availability: Timing and location are crucial. Can the supplier deliver the goods or services when and where you need them? Delays or logistical issues can disrupt your operations, so this is a vital factor to confirm early in your evaluation.
- Pricing: While competitive pricing is important, remember that the lowest price doesn’t always equate to the best value. Evaluate the total package of services included. A slightly higher price might offer significant benefits in quality or support, making it a wiser investment.
- Quality: Can the external provider meet your specifications, tolerances, and performance requirements?
- Solvency: Consider the long-term viability of the supplier. Are they financially stable enough to be around next month or next year? This is particularly crucial if your procurement involves warranties or ongoing support. You don’t want to find yourself in a bind when you need assistance and the supplier has vanished.
- Implementation of a QMS: Look for suppliers that prioritize a formal Quality Management System such as certification to ISO 9001, AS9100, AS9120. A QMS is a hallmark of good management practices, promoting customer focus, discipline, and proactive problem prevention. If a supplier’s QMS is certified by an accredited body, like ISA, this adds an extra layer of assurance regarding their operational standards.
These are the most basic issues for selecting an external provider, and they are typically verified through research of sales literature, websites, published specifications, discussions with its representatives, industry journals, and customer references. Occasionally, the selection criteria may be verified through a trial purchase. This is the case when long-term contracts, large product quantities, or extremely critical products are involved. The trial purchase can reveal a great deal about what to expect over the long term.