What is a retailer audit?
Aaron Hoare 
Date published: Dec 18, 23
A retailer audit is a thorough investigation conducted by an independent third-party organization. The aim of these audits is to assess a wide variety of parameters such as product quality, safety measures, business practices, and compliance with industry-specific regulations. In this article, we will be shining a spotlight mostly on the food and beverage industry, though the key points of a retailer audit are similar across more industries. We covered, for example, the most common FDA 483 inspection observations across a number of sectors in a recent article.
A retailer audit is an assessment that is not restricted solely to products, but often extends to the examination of the operational practices, supply chain management, and even ethical standards of the company in question. Retailer audits are commonly requested by retail businesses who wish to ensure that their suppliers adhere to expected standards, thus protecting the credibility of their brand and the trust of their customers.
Food and beverage retailer audits
A retailer audit specifically for the food and beverage sector will still be a rigorous inspection or assessment conducted by an independent third-party organization. These audits are designed to scrutinize the safety, hygiene, and quality standards upheld by food and beverage producers.
Retailers commission these audits to confirm that the products they stock and sell to consumers meet or exceed specific quality standards. These audits encompass a comprehensive evaluation of various aspects like sourcing of ingredients, production processes, packaging, storage, distribution practices, and even ethical standards. By doing so, retailer audits aim to ensure that the food and beverage products consumed by customers are not only safe and hygienic, but also adhere to the highest quality standards.
Want to simplify retailer audits in your organization? Download our guide to retail audits for the food and beverage sector today.
Download nowTypes of retail audit
There are several types of retailer audits, each with its own focus and objectives. Here are a few of the most common ones:
- Quality audits: These audits focus on the quality of the products. They entail a detailed analysis of the production processes, product design, packaging, and labeling to ensure that all these aspects meet the set quality standards.
- Safety audits: Safety audits are all about making sure that the products are safe for consumption. They closely examine the hygiene standards maintained during production, storage, and distribution in relation to the food and beverage sector. But they will also look closely at the safe working practices of the operation. This can have overlapping goals with an ethical audit.
- Compliance audits: These audits check whether the producers are complying with all the required industry regulations and standards. They also involve checking the paperwork to ensure that all the necessary permits and licenses are in place.
- Environmental audits: These audits scrutinize the environmental impact of the producers' operations. They assess the company's waste management practices, energy usage, and overall carbon footprint.
- Ethical audits: Ethical audits evaluate the social responsibility of the producers. They look into fair trade practices, workers' rights, and the company's contributions towards social causes.
- Financial audits: These audits are more concerned with the financial aspects of the business. They verify the accuracy of the company's financial statements and ensure that the company is financially stable and profitable.
Internal vs external retail audits
Both internal and external retail audits play an integral role in maintaining food safety, hygiene, and quality standards. However, they differ in their purpose, scope, and execution.
Internal audits: As the name suggests, are conducted by the company's own audit team. They are a self-check mechanism that allows the organization to continually monitor and improve their processes. The prime advantage of internal audits is their frequency and timeliness. Since they are conducted by the company's own staff, they can be done more regularly, and issues can be spotted and corrected earlier. However, they may lack the objectivity and comprehensiveness that external audits provide.
External audits: Are conducted by independent third-party organizations. Their primary goal is to provide an unbiased evaluation of an organization’s adherence to regulatory standards. External auditors have no affiliations with the company being audited, which allows them to provide an objective assessment. Their findings can be used to provide independent assurance to stakeholders that the company is following all necessary safety, hygiene, and quality standards. However, external audits can be more time-consuming and costly.
So, say you are a food and beverage product supplier to Walmart, Tesco, or any other retail giant. With very little warning, they may commission a retail audit of your practices, and this would be an external audit. Use what you learn from your internal audits to make sure you are always ready for an external retail audit.
Quality management software ensures you are always retailer audit ready
Retail audits can be unexpected, and negative observations can have a severe effect on your reputation, not to mention your bottom line. The only way to make sure you breeze through your next retail audit is to maintain a state of near-constant audit readiness.
That is where Ideagen’s quality management solutions come in. By using Ideagen Quality Management, you can ensure you are audit ready at all times, maintain compliance with key regulations as set out by the FDA, BRC, or the GFSI. With Ideagen Quality Management Food & Beverage Edition, you can gain a 360-dgree view of your entire supply chain, product development, and customer communications. Track raw materials from farm to shelf with ease.
Learn more
Learn more about Ideagen’s powerful software solutions for managing quality in the food and beverage sector today, or book a demo with our team to see it in action
Find out more