Externally Provided Processes, Products and Services-Providers Audit & Certification

Externally Provided Processes, Products and Services-Providers Audit & Certification

Externally Provided Processes, Products and Services-Providers Audit & Certification

Today’s businesses strive to be resilient and manage numerous business risk to remain competitive and grow profit. Multiple strategies and deployments are often executed to achieve vast results. One of such is to outsource services and products to competent parties to manage and deliver consistently.

These providers are key stakeholders in business management, and therefore their relevance in delivering business objectives is critical. Such objectives will include overall business customer satisfaction and profitability. The final outputs –products or services – of the organizations must meet customer, statutory, regulatory, and organization’s own requirements on consistent basis.

The inability of an organization to deliver as a result of failure induced by the vendor or its non-performance or inability of external provider to timely deliver the outsource product or service to requirements cannot be excused when customers apply barometer for service. Customers see the organization as a failure and not the vendor.

Organizations engage the services of external services providers for services such as security, cleaning services, haulage, courier, ATM Support services, cash delivery, transportation, protocol, bandwidth provision, Alert services (SMS /E-mail), card personalization services, raw material supplies etc.

It is imperative therefore for an organization to manage the risk associated with the engagement of these providers by employing methods and approaches that are proven and result yielding.

Best practice approaches will include the following :

• Determine what could go wrong , assess the risk and controls to be applied which will include

i) when a process or part of a process is provided by an external provider
ii) when products and services are provided directly to your customers on your behalf
iii) when products and services from the external providers are intended for incorporation into your own products and services

• Institute a process for determining and setting criteria for selection , evaluation and monitoring of performance of the external providers

• Institute a process for rating, re-evaluation of the external services and products providers. This may include periodic audits

• Assign responsibilities and authorities for the management of these processes and set specific ,measurable objectives for them with appropriate empowerment

• Encourage the external services and products providers to implement best practice or standard such as ISO 9001:2015, ISO 28001 Supply Chain Security Management System (SCSMS).

• Establish a formal and informal communication process, well known to all parties .Share and share with the external services and product providers within your organization’s control.

• Ensure adequacy of requirements for products and services the providers must meet and ensure it is communicated appropriately using defined format and route.

• Institute a verification process that will ensure that externally provided processes , products and services meet requirements

• Maintain and retain documented information on the management of the processes for externally provided services and products

• Engage competent and certified personnel to manage these processes

• Train your staff and where appropriate ,train external products and services providers

• Design metrics to measure these processes and monitor frequently

These approaches above will ensure efficiency and effectiveness of the external services and products providers in the supply chain of the organization. More so, it provides opportunity for process and system improvement, promotes services and products quality, standardization and reduces supply risk.


For more information or enquiry, please contact: tenolone@tenol-alpha.com

1 thought on “Externally Provided Processes, Products and Services-Providers Audit & Certification”

  • 1
    Bruce on April 10, 2019 Reply

    Do you have any ideas for creating write-ups? That’s where
    I always struggle and I just finish up looking empty screen for
    very long time.

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