A whitepaper that discusses how World Class Global Corporations can manage their suppliers using the ISO Framework. Included is a brief guidance relating to transparency with respect to compliance, governance and sustainability elements. Drivers include Corporate Governance, Quality Management ISO9001, Health & Safety OHSAS18001 and Environmental ISO14001.

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A PRACTICAL GUIDE TO SUPPLIER DEVELOPMENT USING THE INTERNATIONAL ISO FRAMEWORK
C O N T E N T S
Considerations 2
_________________________
Impacts 3
_________________________
- Shareholder Benefits
Corporate Responsibility 4
_________________________
- Overall Governance
ISO9001 Quality 5
_________________________
- Confidence in Delivery
ISO14001 Environment 6
_________________________
OHSAS18001 Safety 7
_________________________
Supplier Certification 8
_________________________
- Supplier Monitoring
Process Map 12
_________________________
- High Level Strategy
Further Notes 13
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Modern corporate organizations should have a workable and practical
supplier development program as part of their strategy.
It has been predicted that those who place themselves on their supply
chain map with strategic intent emerge as the clear winners on the
international playing field.
This white paper summarizes the key drivers within the Compliance &
Governance leg-
This summary includes the most successful and transparent approaches
that are undertaken by today’s corporate giants- namely Corporate
Responsibility, Quality Management, Environmental Management and
Occupational Health & Safety Management-
A practical approach using the ISO FRAMEWORK is described, with
levels of compliance flagging the actual supplier development to be
deployed.
Andre Barnarde
OWNER
ISO Masters

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Figure 1
C O N S I D E R A T I O N S
Modern corporate organizations should have a workable
and practical supplier development program as part of
their strategy.
It has been predicted that those who place themselves on
their supply chain map with strategic intent emerge as the
clear winners on the international playing field.
This white paper summarizes the key drivers within the
Compliance & Governance leg of Supply Chain
Management.
This summary includes the most successful and
transparent approaches that are undertaken by todays
corporate giants- namely Corporate Responsibility,
_____________________________________________
Quality Management, Environmental Management
and Safety Management.
The figure above illustrates the flow of change throughout
the supply chain, which is initiated from the supplier
processes to the final impacts which in the long run boost
shareholder confidence-
It should be noted that recent changes to the ISO
standards include requirements for Context of the
Organization, and the need for a clear description of
shareholders and interested parties, and how these
parties influence the processes of the supplier’s
organization.
__________________________________________________

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Boost Shareholder Confidence
Integrated & Collaborative Supply
Chain
Confidence in Products/Services
used
Risk Mitigation
Mission-Critical Supplier Control
Improved Project Performance
Safety Control
Green Issues Transparency
Alignment of Corporate Reporting
Figure 2
Some of the impacts and benefits to be achieved from a
well-deployed Supplier Development Program are
illustrated by the table above.
Each Corporate Body should consider how to ensure that
its requirements are rolled out into the supply chain.
Appropriate methods of communication should be used;
however actual levels of compliance should be attained
by means of gap-assessments and audits.
Once an initial audit has been completed, the level of
compliance should be entered into the Supply Chain
Management database- the base-line information should
then be available, and where necessary, appropriate
supplier development should then be done.
_____________________________________________
In practice, deployment should first be planned with
respect to mission-critical suppliers.
This whitepaper illustrates how levels of compliance can
be indicated- for instance by classifying suppliers as
ONE-STAR, TWO-STAR or THREE-STAR suppliers.
Actual weighting and scoring should be designed
according to internal controls of the corporate body.
The following sections describe the main elements to be
used to drive supplier development.
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I M P A C T S
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C O R P O R A T E R E S P O N S I B I L T Y / G O V E R N A N C E
This driver includes the rollout of the corporate body’s
mission and values into the supply chain.
Expectations would include documented and signed
statements of related policies by the supplier’s executive
management.
It should be noted that the approach should be one of
alignment, not autocracy- thus each supplier’s identity
and branding should be preserved.
_____________________________________________
Elements of corporate responsibility include commitment
to appropriate legislation, ethics, values, fair treatment of
workers and so on.
Organizations may cross-reference to International
Standards such as BS 10500:2011 Anti Bribery and
BS13500 for guidance-
Refer to the links below for more information:
__________________________________________________
L I N K S F O R F U R T H E R
G U I D A N C E
Anti-Bribery Article
Anti-Bribery & Anti-
Corruption Standard
BS10500:2011 SAI
Effective Governance Article Governance Standard BS13500 BSI

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I S O 9 0 0 1 Q U A L I T Y M A N A G E M E N T
The key deliverable of the compliance leg of a supplier
development program should be confidence in suppliers’
products or services.
The ISO9001 standard is the world’s most successful
standard, with world-wide certifications now exceeding the
ONE MILLION mark.
An appropriate Quality Management System should ensure
consistent delivery of product or service of the supplier.
Hence, the corporate body’s Supply Chain Development
Program should include activities which measure the
confidence in the ability of the suppliers to meet the full intent
of their Quality Management Systems.
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It is appropriate to use a phased-in approach-
While ISO9001 should be used as the bench mark,
considering the array of factors in the supply chain, ratings of
compliance should be measured and monitored- 100%
compliance is therefore not necessarily demanded, but where
mission-critical delivery is identified, such gaps should be
noted and flagged- this is where the actual supplier
development should then be deployed.
Where such gaps have been identified, development activities
should include training, awareness, ISO consultancy and
follow-up assessments.
L I N K S F O R F U R T H E R
G U I D A N C E
NEW ISO 9001 Revision
Quality Management
Standard NEWS ITEM
ISO9001:2015 BSI

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I S O 1 4 0 0 1 E N V I R O N M E N T A L M A N A G E M E N T
The most significant movement at the current time is the
GREEN MOVEMENT.
The ISO14001 standard represents the world’s most
influential means of attaining environmental compliance.
An effective system ensures that a supplier’s activities
are in line with current legislation, and that the
environment is not adversely affected. It further ensures
that the corporate body’s reputation is protected.
The relevant environmental elements of the supplier
should be encapsulated within the ISO14001 system-
while 100% compliance is not necessarily implied, partial
ISO14001 systems should control and manage the most
significant aspects, for example:
Critical supplier monitoring should include status of
banned substances such as RoHS (lead, mercury,
cadmium, hexavalent chrome, polybrominated biphenals
and polybrominated diphenyl ether and so on.
Other essential elements of Environmental Systems
should include a defined waste control process,
monitoring of use of energy, electricity, water, paper and
other resources.
L I N K S F O R F U R T H E R
G U I D A N C E
ISO 14001 Information Environmental Standard ISO14001:2015 ISO
Restricted Substances
Restriction of Hazardous
Substances
Directive
2002/95/EC
ROHS

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O H S A S 1 8 0 0 1 H E A L T H & S A F E T Y M A N A G E M E N T
The third standard exerting global influence in terms of
high-level compliance is the International Standard
OHSAS 18001.
Of primary importance here are leading indicators relating
to injuries and fatalities- it should be noted that no
fatalities and low levels of injuries do not necessarily
imply that an organization’s Health and Safety System is
effective-
The risk/hazard identification system of the supplier
should reveal the actual risk levels within such
organization- and actions within such organizations
should show a clear reduction in risk levels.
_____________________________________________
Controls relating to mitigation of risk should include
Behavior-Based Systems and Tools, since root cause
analysis of injuries and fatalities show a clear link
between organizational behavior and the occurrence of
accidents.
Further development of Health and Safety Systems
should also include transparency in terms of long-term
health of employees, not only safety.
Thus, a fully functioning Supply Development Program
should flag the most likely occurrences and
classifications of ill health, injuries and fatalities, even
though this may be seen as an unpleasant activity.
_____________________________________________
L I N K S F O R F U R T H E R
G U I D A N C E
OHSAS 18001 Information
OHSAS18001:2007
Standard
BSI
ISO45001 Information
ISO45001 FORTHCOMING
Health & Safety Standard
BSI

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In order to carry out a Supplier Development Program,
base-line gap assessment or audits should be conducted.
The planning processes will include initial selection and
evaluation, after which more formal gap-assessments or
audits should take place.
As indicated within this this whitepaper, the framework
should include the elements relating to Corporate
Reasponsibility, Quality, Environment and Health &
Safety.
The subsequent data gathered from the such base-line
activities should then be lined up so that the status of
compliance is clear- the benefit of such transparency is
that the relavent risk profiles within the Supply Chain Map
_____________________________________________
can be continuously managed, and actual deployment of
such development can then be planned for.
Since it is expected that a phased-in approach of
compliance of suppliers is to be the most practical
strategy, classifications of supplier compliance status
should therefore be built into the corporate body’s
Supplier Development Program.
The following tables represent a practical approach to
Supplier Compliance Status Classification- the main
sections and clauses of the related standards are
included for illustration- Note that each corporate body’s
internal measuring criteria would include further detail
with regard to level of compliance, weighting, scoring and
so on.
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S U P P L I E R D E V E L O P M E N T C E R T I F I C A T I O N P R O G R A M
Select
Evaluate
Audit
Monitor
Develop
Tender Award
9001
14001
18001
ISO

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ONE STAR TWO STAR THREE-STAR
0-20% 20-40% 50% 60-80% 80-100%
04
Quality Management
System
05
Management
Responsibility
06 Resources
07
Product/Service
Realization
08
Measurement Analysis &
Improvement
Figure 3
The table above represents the approach organizations
should used with respect to ISO9001 Quality
Management.
For illustration purposes, the main sections/clauses of the
standard are tabled- in practice organizations need to
take into account all the sub-clauses and requirements of
the standard.
One of the outputs of the SUPPLIER DEVELOPMENT
PROGRAM is the flagging of all concerns relating to
product or service delivery- this is usually recorded in the
form of non-conformances.
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Concerns which are raised should be cross-referenced to
the appropriate clause of the standard. However, it
should be noted that 100% compliance to the ISO9001 is
not necessarily implied. A realistic approach may include
ONE-STAR, TWO-STAR and THREE-STAR levels of
compliance.
NOTES: The break down of each clause catorgory, such
as CLAUSE 4 Quality Management System would be
quantified according to the corporate body’s own internal
guidance documents- such actual scoring would take
place on the day of the actual assessment of such
supplier.
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I S O 9 0 0 1 : 2 0 0 8 R E Q U I R E M E N T S

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ONE STAR TWO STAR THREE-STAR
0-20% 20-40% 50% 60-80% 80-100%
4.1 General
4.2 Policy
4.3 Planning
4.4
Implementation &
Operation
4.5 Checking
4.6 Management Review
Figure 4
The table above represents the approach organizations
should use with respect to ISO14001 Environmental
Management and OHSAS18001 Occupational Health
and Safety Management.
As per the section above relating to ISO9001 Quality
Management, concerns should be recorded via non-
conformance systems, incident systems etc.
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NOTES: The break down of each clause catorgory, such
as CLAUSE 4.1 General would be quantified according to
the corporate body’s own internal quidance documents-
such actual scoring would take place on the day of the
actual assessment of such supplier.
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I S O 1 4 0 0 1 : 2 0 0 4 / O H S A S 1 8 0 0 1 : 2 0 0 7 R E Q U I R E M E N T S

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ONE STAR TWO STAR THREE-STAR
0-20% 20-40% 50% 60-80% 80-100%
04
Context of the
Organization
05 Leadership
06 Planning
07 Support
08 Operation
09 Performance Evaluation
10 Improvement
Figure 5
Organizations should be aware that ISO9001 and
ISO14001 standards have now been ratified (September
2015).
Therefore Supplier Development Programs now need
to make allowance for these changes.
The main clauses and requirements are illustrated in the
table above.
The internal programs will need to take these new
changes into account; in practice audit and related
activities will need to have two sets of criteria until the
previous versions of the standards are no longer valid.
It is thus necessary that a TRANSITION PERIOD be
incorporated into the SUPPLIER DEVELOPMENT
PROGRAM, such as is now being used by international
Certification Bodies- while somewhat inconvenient, the
internal processes and procedures relating to auditing
and related Supply Chain Management activities need
not be un-necessarily cumbersome.
NOTES: The break down of each clause category, such
as CLAUSE 04 Context of the Organization would be
quantified according to the corporate body’s own internal
quidance documents- such actual scoring would take
place on the day of the actual assessment of such
supplier
The overall high level process map/summary relating to
this whitepaper is illustrated below:
I S O 9 0 0 1 : 2 0 1 5 / I S O 1 4 0 0 1 : 2 0 1 5 R E Q U I R E M E N T S

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Figure 6

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There are well-established standards, tools and
references that are available within the different
industries that should be used to complement an
organization’s BUSINESS MANAGEMENT SYSTEM-
As we have seen these encapsulate the essence of
Corporate Responsibility, Quality Management,
Environmental Management as well as Occupational
Health & Safety Management.
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Within the ISO FRAMEWORK, there are a number of
tools and methods which I like to think of as building
blocks- these building blocks can be used within an
orgainzation to faciltate day-to-day requirements and also
longer term requirements such as training, process
qualification and shareholder reporting.
The table below gives further examples of such building
blocks:
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Corrective Action Root Cause Analysis Preventive Action
PDCA
Plan-Do-Check-Act
The 7 Quality Control Tools Six Sigma
Lean Management
TQM
Total Quality Management
Management
Pareto Charts
Control Charts Quality Plans
ITP
Inspection & Test Plans
Incident Management Risk Management Waste Control
Restricted Substances Emergency Response Business Continuity Plans
Figure 7
FURTHER INFORMATION
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Contact Us: For-your-ISO-requirements:
ISO Certification | Auditing | Training | Internal Auditing | ISO System Design | Supplier Audits
ISO9001 | Quality Management
ISO14001 | Environmental Management
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