When a supplier delivers defective goods, missing documentation, wrong parts, or services that do not meet requirements, the first priority is often to solve the immediate problem.
The buyer may need replacement goods. The warehouse may need return instructions. Quality may issue a Non-Conformity Report. The supplier may issue an RMA number so the material can be returned.
But one important question remains:
What will stop the same problem from happening again?
This is where a Supplier Corrective Action Report, often called SCAR, becomes important.
A SCAR is used when a supplier problem is serious, repeated, or important enough that the buyer needs more than a quick fix. The supplier must investigate the root cause, define corrective actions, implement them, and show that the actions are effective.
In procurement, SCAR connects supplier issue handling with supplier development, quality performance, cost control, and long-term supplier accountability.
Blog framework
Role: Tactical buyer
Supporting roles: Operative buyer, supplier quality, quality control, procurement management
Process: Supplier corrective action / supplier performance management / supplier development
Level: Advanced
Related course: Supplier management
Quick answer: What is a Supplier Corrective Action Report?
A Supplier Corrective Action Report, or SCAR, is a formal document and process used to request, track, and verify corrective action from a supplier.
It is normally used after a supplier non-conformity has been identified. The supplier is expected to investigate the root cause, define corrective actions, implement them, and prevent the problem from recurring.
A SCAR is not only about fixing defective goods. It is about correcting the supplier process that allowed the defect, delivery failure, documentation error, or service problem to happen in the first place. This aligns with the quality principle that root cause analysis should identify the underlying cause of a nonconformance so it can be permanently eliminated through process improvement.
The practical problem: the supplier fixed the delivery, but not the cause
Many supplier problems are handled too quickly.
A buyer receives defective material. The supplier sends replacement parts. The immediate production risk is solved. Everyone moves on.
Then the same problem happens again.
This is a common procurement problem. The organization solved the symptom, but not the cause.
Examples include:
- A supplier repeatedly delivers parts with the same defect.
- Certificates or documentation are often missing.
- Packaging damage appears in several deliveries.
- The wrong revision is delivered more than once.
- A service supplier repeatedly fails to follow agreed procedures.
- The supplier promises improvement, but the same issue returns.
- The buyer receives credits or replacements, but internal cost continues.
In these situations, an NCR or RMA may not be enough.
The NCR documents the problem.
The RMA controls the return of material.
The SCAR asks the supplier to correct the root cause.
That is the key difference.
NCR, RMA, and SCAR: How they fit together
NCR, RMA, and SCAR are related, but they have different purposes.
| Tool | Main purpose | Main question it answers |
|---|---|---|
| NCR | Documents the non-conformity | What is wrong? |
| RMA | Authorizes and tracks the return | How do we return or replace the goods? |
| SCAR | Drives corrective action | How do we stop this from happening again? |
A typical supplier issue may move through all three steps.
First, the organization identifies a non-conforming delivery and creates an NCR. Then, if the material must be returned, the supplier issues an RMA. If the issue is serious or repeated, the buyer or supplier quality team issues a SCAR.
The SCAR is the step that turns issue handling into supplier improvement.
What does SCAR mean?
SCAR is commonly used to mean Supplier Corrective Action Request or Supplier Corrective Action Report.
The two terms are closely connected:
- Supplier Corrective Action Request means the buyer formally asks the supplier to investigate and correct a problem.
- Supplier Corrective Action Report means the supplier documents the investigation, root cause, corrective actions, implementation, and verification.
In practice, many companies use the term SCAR for the full process.
A SCAR is formal because it creates clear expectations. It tells the supplier that the problem must be investigated, answered, corrected, and verified.
Several quality management sources define SCAR as a formal request to a supplier to address quality or compliance issues, usually by identifying root cause and preventing recurrence.
Why SCAR matters in procurement
A SCAR matters because supplier problems are not only quality problems. They can also create procurement, cost, delivery, production, and customer problems.
A weak corrective action process leads to recurring supplier issues. Recurring issues create hidden cost.
Examples of hidden cost include:
- Extra inspection.
- Sorting.
- Rework.
- Scrap.
- Return freight.
- Expedited replacement deliveries.
- Production stops.
- Customer complaints.
- More administration.
- Lower trust in the supplier.
- More time spent by operative buyers and quality teams.
A good SCAR process helps procurement move from repeated firefighting to structured supplier improvement.
This is also consistent with the broader quality management principle that corrective actions should address the cause of nonconformities to prevent recurrence. ISO 9001 guidance on nonconformity and corrective action emphasizes reacting to nonconformities, evaluating the need for action to eliminate causes, implementing action, reviewing effectiveness, and retaining documented information.
When should a buyer issue a SCAR?
Not every supplier problem needs a SCAR.
If every small issue becomes a formal corrective action request, the process becomes heavy and suppliers may stop taking it seriously. The buyer should use SCAR when the issue justifies deeper investigation.
A SCAR is usually appropriate when:
- The same issue happens more than once.
- The non-conformity is serious.
- The issue creates production or customer risk.
- The issue affects safety, compliance, or regulatory requirements.
- The cost impact is significant.
- The supplier response is weak or unclear.
- The problem shows poor process control at the supplier.
- The supplier has a negative quality trend.
- A customer or internal stakeholder requires documented corrective action.
A SCAR should not be used as punishment. It should be used when structured corrective action is needed.
One source on SCAR notes that these requests are normally used for critical or repeated issues, not every minor non-conformance.
How this connects to the tactical buyer role
The tactical buyer is the primary procurement role for SCAR because SCAR connects supplier performance, commercial impact, supplier development, and contract follow-up.
The operative buyer may identify the issue and coordinate the immediate supplier communication. Quality may confirm the technical non-conformity. But the tactical buyer often becomes important when the problem affects supplier performance or the long-term supplier relationship.
Typical tactical buyer responsibilities include:
- Deciding whether the issue should be escalated to SCAR.
- Coordinating with supplier quality and internal stakeholders.
- Making sure the supplier understands the seriousness of the issue.
- Connecting the SCAR to supplier performance management.
- Reviewing cost impact and commercial consequences.
- Using SCAR data in supplier meetings.
- Following up repeated supplier failures.
- Deciding whether supplier development, audit, or resourcing is needed.
- Ensuring future contracts or specifications address recurring risks.
The tactical buyer should not treat SCAR as only a quality form. It is also a supplier management tool.
How this connects to the operative buyer role
The operative buyer is often closest to the daily issue.
The operative buyer may be the first procurement person to see that something is wrong because the problem appears during goods receipt, order follow-up, invoice matching, or communication with warehouse and production.
Typical operative buyer responsibilities include:
- Noticing repeated supplier problems.
- Connecting the issue to the purchase order and delivery.
- Sharing information with quality or the tactical buyer.
- Following up replacement, credit, or RMA.
- Updating purchasing records.
- Making sure open supplier issues do not disappear.
The operative buyer may not own the full SCAR process, but the operative buyer often provides the information that makes a good SCAR possible.
Where SCAR fits in the procurement process
SCAR belongs mainly in supplier performance management and supplier development, but it is triggered by problems found in daily operations.
It can be connected to several procurement process steps:
- Goods receipt.
- Incoming inspection.
- Non-Conformity Report.
- Return Material Authorization.
- Supplier communication.
- Corrective action follow-up.
- Supplier performance review.
- Supplier development.
- Contract review.
- Supplier audit.
- Sourcing decision.
This makes SCAR a bridge between operational problem solving and tactical supplier management.
The issue may start as a delivery problem, but the SCAR turns it into a structured improvement process.
What should be included in a Supplier Corrective Action Report?
A useful SCAR should be clear, factual, and action-oriented.
It should normally include the following content.
1. SCAR number and date
Each SCAR should have a unique reference number and issue date. This makes the case traceable and easier to follow up.
2. Supplier information
The report should include supplier name, supplier contact, site, and relevant contact details.
If the supplier has several production sites, the affected site should be clearly identified.
3. Buyer and internal contact
The SCAR should identify the buyer, supplier quality engineer, quality contact, or internal owner responsible for follow-up.
4. Reference information
The SCAR should connect to relevant documents, such as:
- Purchase order.
- Contract.
- Delivery note.
- Invoice.
- NCR number.
- RMA number.
- Item number.
- Batch number.
- Serial number.
- Drawing or specification.
- Inspection report.
This link is important. Without traceability, supplier corrective action becomes vague.
5. Problem description
The problem description should be factual and specific.
It should explain:
- What was expected.
- What was delivered or performed.
- Which requirement was not met.
- How the issue was detected.
- How many items or deliveries are affected.
- Whether the problem is isolated or repeated.
A weak problem statement leads to a weak corrective action.
A strong problem statement creates a better investigation.
6. Evidence
Evidence may include photos, measurement results, test results, inspection records, certificates, complaint information, production reports, or returned samples.
The evidence should support the problem statement.
7. Impact
The SCAR should explain the business impact.
Examples include:
- Production delay.
- Customer delivery risk.
- Extra inspection.
- Scrap.
- Rework.
- Warranty issue.
- Safety concern.
- Regulatory risk.
- Increased cost.
- Loss of trust in the supplier.
Impact helps the supplier understand why the issue matters.
8. Immediate containment
Containment means action taken to stop the problem from spreading while the root cause is investigated.
Examples include:
- Blocking affected stock.
- Sorting material.
- Stopping shipment.
- Replacing goods.
- Checking inventory at supplier and buyer sites.
- Informing production.
- Isolating suspect batches.
- Using temporary inspection.
Containment is not the same as corrective action. It protects the business now, but it does not necessarily prevent recurrence.
9. Root cause analysis
The supplier should identify why the problem happened.
This is one of the most important parts of the SCAR.
Root cause analysis should go beyond symptoms. ASQ defines root cause as the core factor behind a nonconformance that should be permanently eliminated through process improvement.
Common root cause tools include:
- 5 Whys.
- Fishbone diagram.
- Process mapping.
- Fault tree analysis.
- Data review.
- Control plan review.
- Failure mode analysis.
The buyer should challenge weak root causes such as:
- “Operator error.”
- “Human mistake.”
- “Miscommunication.”
- “Supplier forgot.”
- “One-time issue.”
These may describe what happened, but they often do not explain why the process allowed it to happen.
10. Corrective action
Corrective action is the action that removes or controls the root cause.
Examples include:
- Updating work instructions.
- Improving process controls.
- Changing inspection method.
- Revising packaging design.
- Training operators.
- Updating supplier system settings.
- Improving drawing control.
- Introducing mistake-proofing.
- Changing tooling or machine setup.
- Adding approval steps for revision changes.
Corrective action should be specific, assigned, and dated.
11. Preventive action or systemic action
The supplier should also consider whether the same root cause may affect other products, lines, sites, or customers.
This is where the SCAR becomes stronger.
For example, if the root cause is poor revision control, the supplier should not only fix one part number. They should review whether other items could have the same risk.
12. Implementation date and responsible person
Every action should have an owner and due date.
Without responsibility and timing, the SCAR becomes a document rather than a management process.
13. Verification of effectiveness
The buyer should not close the SCAR only because the supplier has written an answer.
The corrective action should be verified.
Verification may include:
- Reviewing new inspection data.
- Checking several future deliveries.
- Auditing the changed process.
- Confirming no repeat issue after a defined period.
- Reviewing supplier evidence.
- Checking updated procedures.
- Confirming training records.
- Validating process capability.
AIAG describes effective problem solving as structured work that helps avoid skipped steps and supports sustainable improvement; its CQI-20 guide specifically focuses on improving problem descriptions, root-cause analysis, prioritization, review, and sustainable corrective action.
14. Closure decision
The SCAR should be closed only when the buyer or quality owner accepts that the supplier has taken effective action.
Closure should include:
- Date closed.
- Person approving closure.
- Evidence reviewed.
- Any remaining follow-up.
- Link to supplier performance record.
Supplier Corrective Action Report process step by step
A practical SCAR process can be managed in eight steps.
Step 1: Identify the supplier issue
The process starts when a supplier problem is identified.
This may happen through incoming inspection, production use, customer complaint, service follow-up, audit finding, missing documentation, or repeated delivery issue.
The organization should first decide whether the problem is serious enough for a SCAR.
Step 2: Contain the problem
Before asking for long-term corrective action, the immediate risk must be controlled.
This may mean blocking stock, stopping use, requesting replacement goods, starting sorting, returning material through RMA, or informing affected internal stakeholders.
Containment protects the business while the investigation continues.
Step 3: Document the issue through NCR or equivalent record
The supplier issue should be documented clearly.
In many organizations, this starts with a Non-Conformity Report. The NCR describes what is wrong and connects the issue to purchase order, delivery, item, quantity, evidence, and requirement.
The SCAR should not be based on unclear complaints. It should be based on a documented problem.
Step 4: Issue the SCAR to the supplier
The buyer, supplier quality engineer, or quality department sends the SCAR to the supplier.
The SCAR should define:
- What issue must be answered.
- What information is required.
- When containment response is expected.
- When root cause and corrective action are expected.
- Who the supplier should respond to.
- What format should be used.
Clear timing is important because corrective action can easily lose momentum.
Step 5: Supplier investigates root cause
The supplier investigates why the problem happened.
A good investigation should include people who understand the actual process. It should not be done only from a desk.
The supplier should review data, process steps, controls, inspection records, work instructions, training, machines, materials, and communication flow.
The goal is to identify the real process weakness.
Step 6: Supplier defines and implements corrective action
After identifying root cause, the supplier defines corrective actions.
The actions should be practical and connected to the root cause.
For example:
- If the issue is wrong revision delivery, the corrective action may involve stronger document control and ERP revision checks.
- If the issue is packaging damage, the corrective action may involve packaging redesign and transport validation.
- If the issue is missing certificates, the corrective action may involve system blocking before shipment.
- If the issue is dimensional variation, the corrective action may involve machine setup control and process capability review.
The buyer should check whether the action truly addresses the root cause.
Step 7: Verify effectiveness
Verification is the step many organizations skip.
The supplier may say the action is complete, but the buyer should ask whether the action has worked.
Verification may require several accepted deliveries, audit evidence, inspection data, or proof that the supplier process has changed.
Without verification, the SCAR may close too early.
Step 8: Close the SCAR and update supplier performance
When the corrective action is accepted, the SCAR can be closed.
The case should then be reflected in supplier performance data.
SCAR history can support:
- Supplier review meetings.
- Supplier scorecards.
- Supplier development plans.
- Contract discussions.
- Risk assessment.
- Future sourcing decisions.
This is where the tactical buyer turns corrective action into supplier management insight.
Practical example: SCAR for repeated packaging damage
A manufacturing company receives metal components from a supplier. During goods receipt, several deliveries show transport damage. The first time, the supplier replaces the damaged parts. The second time, the supplier issues a credit. The third time, production is delayed because usable material is not available.
The operative buyer creates an NCR and coordinates an RMA for the damaged goods. Because the issue has repeated and caused operational impact, the tactical buyer and supplier quality engineer issue a SCAR.
The supplier first responds that the goods were damaged during transport.
The buyer challenges the response because “transport damage” describes where the damage was found, not why the supplier’s process allowed the goods to be shipped in packaging that could not protect them.
The supplier investigates and finds that the packaging standard was changed locally without validation. The new packaging did not include enough internal separation between components.
Corrective actions include:
- Reinstating the approved packaging design.
- Updating the packaging work instruction.
- Training warehouse staff.
- Adding a packaging approval step before shipment.
- Checking current finished goods inventory before shipping.
- Sending photos of the next three shipments before dispatch.
The buyer verifies the next three deliveries. No damage is found. The SCAR is closed and the issue is reviewed in the next supplier performance meeting.
This is a good SCAR example because the supplier did not only replace damaged parts. They corrected the process that caused the damage.
What a good SCAR response looks like
A good supplier response should be specific, evidence-based, and connected to the root cause.
A strong response includes:
- Clear acknowledgement of the issue.
- Immediate containment action.
- Confirmed affected scope.
- Root cause analysis.
- Corrective action linked to root cause.
- Responsible person.
- Implementation date.
- Evidence of completion.
- Verification of effectiveness.
- Preventive action for similar risks.
A weak response usually includes:
- Generic promises.
- No clear root cause.
- Blaming one employee.
- No evidence.
- No implementation date.
- No effectiveness check.
- No review of similar products or processes.
The buyer should not accept a weak SCAR response just to close the case.
Common mistakes when managing SCARs
1. Issuing SCARs for every small issue
If SCAR is used for every minor problem, the process becomes administrative noise.
SCAR should be used when the issue is serious, repeated, high-risk, costly, or strategically important.
2. Confusing containment with corrective action
Containment is the short-term action that protects the business.
Corrective action removes the cause of the problem.
For example, sorting defective parts is containment. Changing the supplier process so defective parts are no longer produced is corrective action.
3. Accepting “operator error” as root cause
Operator error may be part of the story, but it is rarely enough.
The better question is: why did the process allow the error to happen?
Was the instruction unclear? Was the training missing? Was there no verification step? Was the tool wrong? Was the system not updated? Was production under time pressure?
Good SCAR work looks for process causes, not only people causes.
4. Closing the SCAR without verifying effectiveness
A SCAR should not be closed only because the supplier filled in the form.
The buyer or quality owner should verify that the action was implemented and that the problem has not repeated.
5. Not connecting SCARs to supplier performance
If SCARs are handled only by quality and never discussed in supplier reviews, procurement loses important information.
Repeated SCARs should influence supplier scorecards, development actions, negotiation preparation, and sourcing decisions.
6. Making SCAR a blame process
SCAR should create accountability, but it should not become emotional or punitive.
The best SCAR processes are factual, structured, and improvement-oriented.
The message to the supplier should be clear: we need evidence that the process has been corrected.
Practical checklist for the tactical buyer
Before issuing a SCAR, check:
- Is the issue serious or repeated enough for SCAR?
- Is there a documented NCR or equivalent issue record?
- Is the requirement clearly defined?
- Is there evidence of the non-conformity?
- Has immediate containment been handled?
- Is RMA needed for returned material?
- What is the cost, delivery, quality, or customer impact?
- Who owns the internal follow-up?
- What response time should the supplier meet?
- Does the contract define corrective action obligations?
- How will effectiveness be verified?
- Should the issue be included in supplier performance review?
Before closing a SCAR, check:
- Has the supplier identified a credible root cause?
- Are corrective actions linked to the root cause?
- Are actions completed and evidenced?
- Has the effect been verified?
- Are similar products or processes considered?
- Has any cost or credit issue been handled?
- Has supplier performance data been updated?
- Are internal stakeholders informed?
SCAR and cost of quality
SCAR is closely connected to the cost of quality.
Poor supplier quality creates visible and hidden costs. Some costs are easy to see, such as scrap, rework, credits, and expedited freight. Other costs are harder to see, such as buyer time, production planning changes, loss of trust, customer dissatisfaction, and repeated internal meetings.
SCAR helps reduce poor quality costs by focusing on prevention of recurrence.
This is why SCAR should not be treated only as paperwork. A well-managed SCAR can reduce future cost by forcing the supplier and buyer to address the cause of the problem.
ASQ also connects corrective and preventive action with cost of quality because organizations often need to understand both the cost of nonconformance and the cost of solving the root cause.
SCAR and supplier development
A SCAR can be a first step toward supplier development.
If a supplier responds professionally, investigates properly, implements effective actions, and prevents recurrence, the SCAR can strengthen the relationship.
If the supplier responds poorly, misses deadlines, gives weak root cause analysis, or repeats the same issue, procurement may need to escalate.
Possible escalation actions include:
- Supplier performance meeting.
- Supplier audit.
- Supplier development plan.
- Increased incoming inspection.
- Temporary controlled shipping.
- Commercial claim.
- Contract review.
- Reduced allocation.
- Resourcing or dual sourcing.
The tactical buyer should view SCAR as one part of the supplier management toolbox.
Suggested SCAR template structure
A practical Supplier Corrective Action Report template can include these sections:
- SCAR number
- Issue date
- Supplier name and site
- Supplier contact
- Buyer contact
- Purchase order reference
- NCR reference
- RMA reference, if relevant
- Item number or service description
- Quantity affected
- Problem description
- Requirement not met
- Evidence attached
- Business impact
- Immediate containment action
- Root cause analysis
- Corrective action plan
- Preventive or systemic action
- Responsible person
- Due date
- Supplier completion evidence
- Buyer or quality verification
- Closure decision
- Closure date
This structure makes the SCAR easier to use in procurement, quality, supplier management, and audit follow-up.
Link to the related LHTS course
If you want to go deeper into this topic, the Learn How to Source course Supplier Management gives you the structured foundation for supplier management, supplier performance follow-up, supplier development, and commercial supplier control.
SCAR is especially relevant for tactical buyers because it connects daily supplier problems with long-term supplier performance, contract expectations, cost impact, and supplier development.
FAQ: Supplier Corrective Action Report
What is a Supplier Corrective Action Report?
A Supplier Corrective Action Report is a formal document used to track how a supplier investigates and corrects the root cause of a non-conformity. It usually includes problem description, containment, root cause analysis, corrective action, verification, and closure.
What does SCAR mean?
SCAR usually means Supplier Corrective Action Request or Supplier Corrective Action Report. The request is issued by the buyer or quality team, and the report is the supplier’s documented response and corrective action plan.
What is the difference between NCR and SCAR?
An NCR documents what is wrong. A SCAR asks the supplier to investigate why it happened and what they will do to prevent recurrence.
What is the difference between RMA and SCAR?
An RMA authorizes the return of material. A SCAR drives corrective action so the problem does not happen again. An RMA handles the returned goods. A SCAR handles the supplier process problem.
When should procurement issue a SCAR?
Procurement should issue a SCAR when the supplier issue is serious, repeated, costly, safety-related, compliance-related, or important enough to require documented root cause analysis and corrective action.
Who owns the SCAR process?
Ownership depends on the company. Supplier quality often owns the technical process, while the tactical buyer often owns the supplier management and commercial follow-up. The operative buyer may support with purchase order, delivery, RMA, and supplier communication details.
What should a supplier include in a SCAR response?
The supplier should include containment action, root cause analysis, corrective action, responsible person, due date, evidence of implementation, and verification of effectiveness.
Can a SCAR be used for service suppliers?
Yes. A SCAR can be used for service suppliers when the delivered service does not meet agreed requirements, such as missed service levels, poor documentation, repeated errors, or non-compliance with procedures.
Should every NCR lead to a SCAR?
No. Not every NCR needs a SCAR. A SCAR should be used when the issue is serious, repeated, high-risk, or important enough to require structured corrective action.
When should a SCAR be closed?
A SCAR should be closed when the supplier has completed corrective actions, evidence has been reviewed, effectiveness has been verified, and the buyer or quality owner accepts the closure.
Conclusion
A Supplier Corrective Action Report is the missing link between documenting supplier problems and improving supplier performance.
An NCR tells the supplier what went wrong. An RMA helps manage the return of goods. A SCAR asks the supplier to find the root cause, correct the process, and prove that the issue will not happen again.
For the tactical buyer, SCAR is an important supplier management tool. It supports better supplier performance, stronger accountability, lower cost of poor quality, and more professional supplier development.
The goal is not to create more paperwork. The goal is to stop repeated supplier problems from becoming normal.
