Third party supplier factory company audit FA is the last step before placing an order is usually the factory audit.

Novas QC supplier factory company audit will help to improve the quality of your supplier chain and also reduce risk of your sourcing process from China.

What’s supplier factory company audit FA?

Factory audit (FA) refers to an onsite factory inspection that is carried out on behalf of an importer at the premises of the manufacturer before placing an order to a new manufacturer. Factory Audit is aimed at avoiding getting involved in a bind working with the wrong factory.

During the Factory Audit, Novas QC the auditor records data and takes pictures of all the essential aspects for the importer’s reference for them to have an in-depth feeling and sense about the factory before any contract is signed.

Factory Audit

Factory Audits are often the last step in the sourcing process. It usually takes place after screening a group of potential suppliers down to the serious ones. Not only is it the most expensive form of evaluating supplier, it is also the most in-depth.

It is important to get to the factory to confirm if the key managers will be available on the desired date. Surprise audits can only be carried in certain situations.

A Factory Audit is compulsory before any order is locked in because it will (in the long run) save the importer from potential disaster, money loss, disappointment and business failure. Thus, accurate and concrete information are needed when selecting a supplier. These information will help you determine if they are the right supplier to do business with.

The Factory Audit process should not be rushed neither should it be based solely on price. There are quite a number of factors that should be put into consideration. Some factories are known for bad quality, not following directions, rough handling and signing off on products that they have not inspected.

Some are also known for child labor, degradation of the environment and poor working conditions. Thus, you need to research your manufacturer, pay a visit to their premises and ensure that they are checked out before entering into any business agreement.

Factory Audit of Social Responsibility

The news of corporate corruption flying around the business world have made companies to pay more attention to enacting policies that reflect corporate social responsibility.

The fall of recognizable businesses has cautioned companies that do not pay attention to conducting their operations ethically.

This has made such companies to develop a checklist that will ensure that their actions are in line with high standards of business etiquettes.

1.Strategy and Vision

The corporate social responsibility checklist must comprise all aspects of the company’s vision statement as well as strategic goals that will make it effective. You need to understand the social responsibility issues that are specific to your industry and the world at large.

2.Accountability and Oversight

The compliance with social responsibility checklist must bring the bad behaviors of company leaders into oversight and ensure that the leaders are held accountable.

The checklist should determine if the factory in question has any department that’s in charge of tracking behaviors and reporting all violations to the authorities concerned.

3.Risk Identification

Although all businesses encounter different kinds of risks, the compliance with social responsibility checklist will go a long way in helping the factories to determine if the level of risk encountered while making a decision aligns with the traditional business ethics.

The checklist must pinpoint risks to the factory’s ethical practices in its policies as well as actions. The factory audit of social responsibility must be factored into a factory’s decisions on business risks. It must also get rid of potential ethical problems.

Factory Audit of Security

1.Global Security Verification (GSV Audit)

After the occurrence of the events on September 11, 2001, both governments and customs organizations around the globe have come up with supply chain security measures aimed at securing trade, protecting against terrorist acts and combating illegal trafficking.

Governments and customs organizations have embraced and implemented the enhanced supply chain security standards and criteria. In order to enforce and adhere to the international supply chain security standards, factories need to access their supply chain so that they can identify, mitigate and get rid of potential risks to security.

The Global Security Verification Audit must involve the use of a cutting-edge methodology that promotes best practices in the global trade industry. This will enable importers and suppliers to reduce risks that are connected to cross-border movement of goods and also expediting their arrival at their respective destinations.

The effective use of resources, structured processes and innovation will go a long way in ensuring that the best GSV Audit is achieved.

2.Customs-Trade Partnership Against Terrorism (C-TPAT) Audit

This form of audit is a voluntary government-business initiative that is aimed at building cooperative relationships that improve the security of the international supply chain.

Businesses must ensure the integrity of their security practices. They must also communicate and verify the security guidelines of their partners within the supply chain. Highlighted below are the benefits of C-TPAT audit:

It ensures the security of the supply chain

It verifies the manufacturer’s compliance

3.Social Compliance Audit

Social compliance audits are increasingly becoming an important part of all global supply chains. They are carried out to in such a way that suppliers are able to evaluate in line with local laws. Social compliance audits are mostly practiced in China. These forms of audits are carried out to ensure that business partners abide by their organization’s commitment to commercial social responsibility.

Social compliance audits are conducted by professionals that are well versed in social responsibility audits and adhere to SA8000 international standard. Compliance reduces the risk of contributing to environmental and social harm, and it’s thus best that the supply chain conforms to this form of audit.

The social compliance audits that are carried out in China involve engagement with the stakeholders, systematic long-term approach and transparency. It helps to validate integrity, transparency and consistency.

2.Quality Control Audit

Quality control audit involves the systematic examination of a quality system. It is carried out by an audit team or by an internal or external quality auditor. It constitutes an important part of a factory’s quality management system. It’s also an essential element in the ISO quality system standard of a factory.

3.Security Audit

Security Audit is an extensive form of audit that involves the formal overview of a factory’s security systems and processes. This form of audit is an all-encompassing and in-depth review of physical attributes, policy and standard operating procedures. It consists of the technical and conceptual overview of the factory’s security systems and processes.

​Conclusion

Factory Audit is a compulsory process that saves time and money through the improvement of the efficiency and productivity of importers and suppliers; minimizes risk by ensuring that suppliers can deliver products and services that align with the client’s needs and requirements and guarantees quality of products sourced from the supply chain.