API Spec Q1 – Addendum 2: Your Supply Chain is Only as Strong as its Weakest Link

Over the summer, the American Petroleum Institute (API) released an update to its Spec Q1 standard. This update, also known as Addendum 2, requires an additional layer of control over critical suppliers. Ultimately, these controls are beneficial, as they close a quality gap that was previously overlooked; however, as is the case with many improvements, your organization will likely experience a period of transition as it adapts to these new requirements.

Addendum 2 brings the addition of two key terms, which have a huge impact on purchasing: Component (a part or element of a larger whole) and Supply Chain (suppliers and associated sub-supplier(s) required for product realization).

The addition of Component impacts the deliverables you receive from suppliers. Instead of just determining the critical products and services your organization receives, you now need to go a step further to identify the parts of these deliverables that are critical.

The addition of Supply Chain expands your scope of responsibility beyond direct suppliers. You are now accountable for the quality of your suppliers’ suppliers, not only with regard to products, but outsourced processes as well.

As you evaluate the impact of Addendum 2 on your organization, it is important to consider the following:

  • How to incorporate the new requirements into your Quality Management System.
  • How to reevaluate critical suppliers.
  • How to ensure the quality of your supply chain.

While Addendum 2 doesn’t go into effect until June, 2019, it is important to begin adapting your system now. If you would like to know how Freer Consulting can help your organization implement API Spec Q1 or Addendum 2, contact us at (206) 285-9044 or [email protected].