What are Factory Audits and Why Are They Important?

Sometimes it happens that you are looking for some factory for your product and finally you find it. According to their reviews and statements, they are perfect for which kind of manufacturer you are looking for your product. But in actual, it might be proved wrong to some extent and this could be harmful to your investment.

So, it’s time to verify and the factory audit an order to know whether this factory is seriously standing on the grounds, it is claiming.

What is a Factory Audit?

The process of factory audit includes the snapshot of the factory which is taken by the auditor who visits the factory with having a checklist of items in order to verify them. The main aim of the auditor to visit the factory is to verify whether the information given by the factory regarding it is correct or not.

Suppliers just pretend to be perfectly excellent in order to win your business. And this is not sure that all the promises they made are true, they may be inaccurate. It can be like this also that they don’t know about the progress of their staff and made false statements.

The following are the ways in which an audit can help you out:

  1. Do they have the capability to make your product? And,
  2. Do they have the capacity they’d need to produce it on time?

Another important benefit of factory audit services is the improvement of the various areas of the factory so that the progress could be encouraged within time. (if in case you are urging to work with them in future).

There are two main types of audits that will help you make a go/no-go decision on placing that order. They are:

  1. Capability Audits – This audit holds the process of auditing the factory in order to check whether the factory is having all things and the equipment, it needs to produce the products.
  2. Capacity Audits – This kind of auditing is done in order to know whether the factory is sufficient enough to produce your products or not.

So, both kinds of factory audit that is capability and capacity are important. So go for these two areas:

3 Types of Audits You Shouldn’t Overlook

You are required to have a supply chain over which you can feel proud and the kind of one which will not leave in any problem.

With the help of a third-party company or an auditor inspector, you can ensure that you are in an accurate way.

1 Quality Audits

Are you looking for the happening when your products will be made to the minimum quality standards?

The effectiveness of the quality management systems will be checked by the auditor.

On the basis of the ISO 9001 standard, the effectiveness of the quality management service will be evaluated. And this ensures you with the much cleaner version of whether or not there are any quality risks to your supply chain.

2 Social Compliance Audits

Is this manufacturer out of compliance with local labor laws? Do they have kids in the factory? Are employees working 12-hour shifts, 7 days a week without adequate breaks?

On the basis of SA 8000, performing social compliance will be the evidence that the factory is not in violation of local labor laws.

3 Security Audits

Are you willing to ensure compliance with C-TPAT?

Customs trade partnership against terrorism is basically an initiative of the US government which helps the private companies to improve their security with respect to terrorism.

This program is basically led by U.S Customs and Border Patrol.

The security audit would be in order if, in case C-TPAT compliance is the need of the client. You will come to know through it whether the factory is making you meet with the needs of the program. And the whole details, you want to secure your supply chain will be given to you.

Bottom line

So, go for factory audit, in case you want to ensure that you are choosing the right factory. With the help of this, you will get a clear picture of the factory that what really is going on inside there. This will also help in the various improvements regarding the different areas.

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