If you are a business engaged in importing things from overseas, then you might be interested in getting factory auditing done. Businesses that rely on products that they need to get produced overseas are always taking a risk because there is a chance that something could go wrong. The actor could potentially lose cartons with your products in them or the factory could potentially end up manufacturing a few products with defects by mistake. So, it is paramount that you find a factory that you can trust; because after all, it is your business’ reputation on the line. But, picking a good factory is much easier said than done. After all, these factories are located in faraway places and it can be difficult to find reliable information and reviews on how the factory operates.
Thankfully, there is a solution, and it involves getting a third party to audit the factory so that you can get all the information you need. We are going to go over in more depth what it entails and why you should get it done.
When does it occur?
If you think about the basic sourcing process, then the auditing will be the last thing you do before picking a factory. Everything else in the sourcing process (designing products, researching, etc.) comes before the auditing. Once the auditing is done, you can make a decision on which factory you want to go with.
How does it work?
The actual process for auditing a factory involves multiple steps.
Picking factories
The first step involves picking a list of 3 to 5 factories. The auditor will then begin collecting all the necessary info on the factories.
Basic documentation
The first info that the auditor will get is basic documentation. For example, the factory’s license is one of the most important pieces of documentation that the auditor will want to get a hold of since it shows that the factory is legally allowed to be producing products. Likewise, the auditor will also look for proof of other orders, to confirm that the factory is legitimate.
Inspection of the production area
After getting the basic documentation, the auditor will then want to actually observe the area where the products will be made. The auditor generally wants to answer 2 questions. Firstly, can the product physically produce the product that the buyer wants (i.e. do they have the necessary machinery) and can they produce the volume that the buyer wants?
Quality control
Finally, the last stage in factory auditing involves the auditor observing the quality control area of the factory. The auditor wants to make sure that the factory thoroughly checks everything they produce to make sure that it is free of defects.
All this info is compiled into a report that the buyer can read before making their final decision.
