How do supplier selection in the automotive industry?


To implement a system for supplier evaluation, supplier selection and supplier approval on the basis of their ability to supply products as per the company’s requirements.


It covers all material, parts/components, job work service & direct production consumables whose product/services affect end-product quality.

Note: – This procedure is not applicable for customer-approved sources or Raw Material Suppliers.

Responsibility of Supplier Selection:

Purchase Head / MR is the overall responsible person for reviewing & implementation of this procedure.

Procedure for supplier selection :

Identification of potential suppliers through the following sources: 

  • Supplier approaching the company
  • Customer’s recommendation
  • Known acquaintances

Shortlisting the supplier and sending supplier evaluation forms for assessing the capability of the supplier.

Receipt of supplier assessment form duly filled. Send the Audit Team for confirmation of assessment as done by the supplier. Do supplier quality system audit as per supplier audit check sheet.

Criteria for Supplier Selection:

Suppliers will be eligible if the audit score is > 75 % in Quality & 65% overall. If the supplier does not achieve the passing criteria, one month period will be given to close all  NCs during Initial Audit. Re audit is conducted of the supplier. If the supplier stills fail to achieve the passing criteria, the supplier is rejected.

If the supplier achieves the passing criteria, send product details to the supplier. Receipt of sample from supplier and approval taken from quality department. If the quality department does not approve the samples, samples are demanded again for 2 times. if samples are not approved then reject the supplier. If the sample is approved, take a quotation from the supplier & add the supplier to the Approved Supplier List.

Supplier Audit Check Sheet:

Supplier Audit Check Sheet

Periodic Review of the Supplier :

Make a plan for supplier audit.

Conduct supplier audit as per plan once in a year as per supplier audit check sheet.

Passing criteria is more than 75% in quality and more than 65% overall.

Audit observation sheet shared with supplier and action is required.

Varify all closure points with evidence.

Periodic supplier audit

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