How to effectively conduct factory audits on suppliers?

[Jacob]

Our company is planning to find a reliable factory agent from China to produce some gifts for promotional activities. Although we can find a large number of suppliers and factories from platforms such as Alibaba, it is difficult to distinguish their production capacity and qualifications. Therefore, we want to select a supplier that fully meets our expectations through factory audits. How to do it effectively? What aspects need to be considered when conducting a factory audit, or do we perform the audit ourselves or choose a third-party quality inspection company to help us conduct a professional factory audit?

[Mike James]

Factory audits verify that your supply chain complies with local and international requirements, as well as your own company’s standards and, ultimately, your brand’s image standards.
If your suppliers pass all three phases of factory audits, the quality of your supply chain will improve:
1. Audit of Social Compliance
Audits of social compliance are becoming an increasingly significant aspect of all global supply chains. They are carried out in such a way that providers can assess in accordance with local regulations. In China, social compliance audits are the most common. These audits are conducted to ensure that business partners adhere to their company’s commitment to commercial social responsibility.
Professionals with experience in social responsibility audits conduct social compliance audits that follow the SA8000 international standard. Compliance lowers the danger of contributing to environmental and social harm, hence it’s better if the supply chain follows this auditing procedure.
Engagement with stakeholders, a methodical long-term approach, and transparency are all part of China’s social compliance assessments. It aids in the verification of honesty, transparency, and consistency.
2. Audit of Quality Control
The systematic assessment of a quality system is what a quality control audit entails. An audit team or an internal or external quality auditor does it. It is an essential component of a factory’s quality management system. It’s also an important part of a factory’s ISO quality system standard.
3. Audit of security
Security auditing is a broad type of audit that entails a formal review of a factory’s security systems and procedures. This type of audit is a comprehensive and in-depth examination of physical characteristics, policies, and standard operating procedures. It includes a technical and conceptual overview of the factory’s security systems and procedures.

[Allen Young]

The following items are included in the Standard Factory Audit:

Ownership of a factory
Status as a legal business
Confirm the locations of the facilities.
Size of the company and the number of employees
Capabilities in general production

The foregoing is included in the Technical Factory Audit, as well as a department-by-department evaluation and verification of:
The state of the facilities, including the structure, the number of employees, labor law compliance, the workshop area, and so on.
Examine the manufacturing system of the manufacturer, including the working conditions, facilities, machinery, technical capability, and environmental control system.
Examine the quality system to confirm that inspectors are present and that the quality control approach is correct.
Examine your managerial abilities.
Examine your financial situation, including your registered capital and bank credit rating.

[Author]

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