SCAR 101: Understanding the Supplier Corrective Action Request

A mislabeled material is used in a production process, leading to product defects and complaints. A supplier is late with a shipment, impacting on-time delivery to customers. A supplier alters their production process without notifying the customer, causing downstream quality issues.  

All of these and more are reasons that manufacturers issue supplier corrective actions—and reasons why effective supplier quality management is so critical.   

To help understand how it works, this article explores steps in the process, elements to include in your supplier corrective action request (SCAR) and best practices to implement. 

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Steps in the SCAR Process

Supplier corrective actions should follow a repeatable, closed-loop process to mitigate the impact of nonconformances and prevent their recurrence. Below is a high-level look at steps in the SCAR process: 

1. Problem identification: The manufacturer identifies a supplier-related quality issue, such as when a defect occurs or if a plant floor audit reveals a non-conformance in materials or parts from a supplier.  
2. Supplier corrective action request (SCAR): The manufacturer formally issues a supplier corrective action request (SCAR) detailing the problem and asking the supplier to investigate and fix it. 
3. Root cause analysis: The supplier conducts a root cause analysis using tools such as 5 Whys, 8D or a Fishbone diagram, reporting the findings on the SCAR.  
4. Corrective and preventive actions: The supplier reports the immediate actions they have taken to contain the problem, as well as a detailed plan to correct the problem and prevent it from happening again. 
5. Verification and follow-up: The supplier documents that the corrective actions have been implemented correctly and sustained, noting any future actions to be taken. 
6. Customer review: Once the supplier submits the completed report, the customer determines whether the actions are sufficient, or if additional steps or responses are necessary.  
7. Final approval: If the supplier corrective actions meet the required conditions, it then goes on to the final stage for formal sign-off, with all results documented in the quality management system (QMS). If the supplier corrective actions do not pass quality control, they may be subject to action such as removal from the approved supplier list.

What Is a Supplier Corrective Action Request (SCAR)?

A supplier corrective action request, also called a supplier corrective action report (SCAR), is a formal notification issued to a supplier of a nonconformance they must investigate and correct. A SCAR helps drive supplier corrective actions by detailing the scope of the problem and initiating the collaboration process between the customer and supplier to address the root cause. 

Key SCAR Components

SCAR templates vary from one manufacturer to another, however most of them share a set of common components, as shown in the table below.  

SCAR Component	Elements Covered
Supplier information	·      Supplier name ·      Supplier contact details
Problem identification	·      Detailed description of the problem ·      Date of detection ·      Location of issue (e.g., incoming inspection, production line, end user or customer location)
Product details	·      Part or material number ·      Batch and lot number ·      Number of units affected
Root cause analysis	·      Preliminary findings ·      Results of problem-solving activities (e.g., 5 Whys, 8D, Fishbone diagram)
Corrective action plan	·      Immediate containment steps ·      Long-term corrective actions ·      Preventive actions ·      Implementation timeline and responsibilities ·      Verification method and criteria
Review and closure	·      Documentation of effectiveness review results ·      Formal sign-off

Best Practices for Supply Chain Corrective Actions

One of the first questions manufacturers face when dealing with supplier-related nonconformances is whether or not to issue a formal SCAR for a given supplier issue. The criteria for opening a SCAR will depend on your own internal requirements, and may be based on elements such as risk level or whether it’s a repeat issue. 

Effective communication and collaboration is also crucial when it comes to supplier corrective actions. This includes: 

• Assessing the supplier’s root cause analysis to determine whether they’ve dug deep enough into the problem  
• Working together to identify the best corrective actions, such as reworking the process, adding new controls or updating training  
• Asking the supplier to evaluate other areas where similar risks exist so that appropriate preventive controls can be added 

Finally, you want to remember that it doesn’t matter how good your solution is if you don’t have a system to verify that the correction is held in place. Additional checks around incoming inspection, process audits or supplier audits can all provide added safeguards to ultimately keep high quality standards, protect your customers—and your business.  

Supplier quality issues represent a major risk, especially for companies without good visibility into their suppliers’ processes. Implementing a robust supplier quality management program, including using SCARs effectively, can help proactively identify issues and pave the way for a stronger supply chain overall.