Retailers, importers and buyers all require a high level of confidence in the reliability, quality and production capacity of their vendors and suppliers. Factory audit will help to improve the quality of your Chinese supplier chain and also reduce the risk of your sourcing process from China. The Factory Evaluation ensures that the appropriate suppliers are being selected and that the Customers Quality requirements are understood and been met to Specifications.
THREE WAYS TO DO CONDUCT FACTORY AUDIT
- In-House Audit– This is performed internally by an in-house team. They measure the strengths and weakness of quality and production systems against any international/external standards and regulation. This form of auditing is unable to provide your organization with any form of certification.
- Second-Party Audit– It is an external audit performed on a supplier by a customer or by a contracted organization on behalf of a customer. There often is a contract involved between the customer and supplier specifying the terms of delivery, pricing, packaging, quality requirements and various additional terms. For this reason, second party audits are generally subject to rules and regulations concerning contract law.
- Third-Party Audit– A third-party audit occurs when a company has decided that they want to create a quality management system (QMS) that conforms to a standard set of requirements, such as ISO 9001, and hire an independent company to perform an audit to verify that the company has succeeded in this endeavor.Third Party Auditors are commonly referred to as registrars or certification bodies.
Importance of Factory Audit in China–
- Navigating the Chinese manufacturing field could be a challenging task especially for the inexperienced foreign business owners. Factory audits in China are a cost-effective and comprehensive way to ensure vendors are reliable.
- Most of the China factories claim they are capable of huge volume output. In order to confirm their capabilities, it is highly valuable to conduct factory audit.
- It offers you the chance to evaluate your China factory’s testing facilities with regard to your product category. You get the chance to determine if the factory is knowledgeable and confident in regard to the product and safety standards of your respective country.
Conducting a factory audit in China eliminates the likelihood of disappointment over unmet expectations. It makes things organized and you get the chance to streamline your China sourcing strategy.