Types of factory audits: Why are they important?

A factory audit is all about checking a supplier's quality before you place an order and purchase the required products from them. The audit lets you identify any problems that may arise, like late deliveries, poor quality, or faulty products. So to avoid this, contact a China inspection company that can help you lower the purchase risks when dealing with suppliers from China by evaluating the suppliers and factories. In this post, we will discuss the various types of factory audits and also see why these audits are so important.

Pre-shipment audit

You can contact a China inspection company to perform a pre-shipment audit or send an in-house inspection team. These are performed to ensure the supplier follows all the buyer's requirements. Pre-shipment audits are done in multiple stages:

• Pre-shipment inspection (PSI): the supplier's facilities and processes are inspected to ensure they meet the standards before sending you the products.
• Final PSI: After receiving the final product, another independent inspection session is performed.
• End-of-line audit includes checking if everything has been shipped correctly and on time. It also helps to ensure that all issues detected in the previous inspections have been resolved.

On-site process audit

This is the most inclusive type of supplier evaluation, conducted by an independent third party, and includes inspecting all the aspects of the supplier's facilities. It involves evaluating the supplier's equipment and processes used for production, management practices, and quality control procedures. The primary aim is to show the buyers how effectively their suppliers achieve their goals. It also provides valuable information about the various steps that could be taken to improve their performance. This may include assessing how well they manage their inventory, if the orders are being fulfilled on time, if they have enough space inside their facility for additional machinery and employees if needed, determining if there is any evidence that the suppliers follow all the safety protocols when handling hazardous materials related to production, etc.

Post-shipment audit

This is a quality check of the goods after they have been shipped and can be done either by the client or supplier. This is a good way to check quality issues before they happen, such as missing parts, incomplete information on the product description sheet, or substandard materials. However, involving an independent third party to conduct this audit is better. 

First-incident audit

First-incident audits help you recognize any potential issues before they become significant enough for your business to suffer major losses. That type of audit is used to evaluate the reliability, safety, and quality of the supplier's facility and involves an inspection team from your company. This team should be trained to identify potential problems in the factory. For instance, if parts have not been correctly assembled or finished, it could lead to accidents at work sites, injury, or even loss of life. These audits help to prevent such incidents at your workplace.

Second incident audit

These audits are conducted when a supplier fails to meet the requirements of the first-incident audit. The goal is to evaluate the supplier's corrective actions and verify if their measures effectively prevent future accidents. The report of this audit as well as other relevant documents or any records related to your relationship with the supplier should be made available to all suppliers who were a part of the second incident audit.

Other types of factory audits

• Ethical audits: are performed to confirm if the vendor has social accountability and follows government regulations. It also ensures that the supplier runs a safe workplace.
• Structural audit: this evaluates the safety and compliance systems of their premises. It helps to ensure that the supplier complies with fire safety measures.
• Manufacturing audit involves evaluating the supplier's ability to produce quality products and verifying if the products meet clients' specifications. It also helps in eliminating risks like production issues. 
• Environmental audit: this ensures supplier compliance with environmental regulations and includes local and international environmental laws and standards.

Importance of factory audits

Factory audits help to ensure that a healthy, safe, and ethical work environment is maintained and that there is compliance with local laws and regulations. It helps to identify any problems you may have with your supplier so that they do not happen again. It also helps improve your quality assurance processes. Factory audits identify areas for improvement in the supplier's production process, thus leading to continuous quality improvements and increased efficiency. These inspections also help in supplier evaluation by checking the supplier's ongoing capabilities and assessing their capacity to meet requirements. They also help to maintain supply chain transparency and ensure brand protection.

To conclude

Factory audits are a unique way to look at your supplier differently. It helps you evaluate the quality of their equipment and process to ensure you are getting what you need.