Feb, 01
2023
China Inspection Company, Company audit Guangzhou

5 Types of factory audits to evaluate your supplier

A factory audit is the best way to check the quality of a supplier before you purchase from them. It helps you identify any problems that may arise, such as poor quality, late deliveries or faulty products. Guangdong province is worth 1/3rd of the Chinese exports. Guangdong Inspection is a reputed inspection company in China with offices in Shenzhen and Guangzhou, helping SMEs to lower purchase risks while dealing with Chinese manufacturers. With offices in Shenzhen and Guangzhou, we cover all Guangdong business area when it comes to evaluate your Chinese suppliers and factories.

  1. Pre-shipment audit

Pre-shipment audits are performed to make sure that the supplier is following all requirements of the buyer. The pre-shipment audit can be performed by a third party or by your in-house team.

Pre-shipment audits are usually done in multiple stages, including:

  • A pre-shipment inspection (PSI) – this is where an independent third party inspects your supplier’s facilities and processes to ensure they’re up to standard before you send them products;
  • A final PSI – this is when you run another independent inspection session after receiving their final product;
  • An end of line audit – this involves checking if everything has been shipped correctly and on time, as well as ensuring that all the issues (if there is any) detected in the previous inspections have been resolved.
  1. On-site process audit

An on-site factory audit is the most comprehensive type of supplier evaluation. It’s conducted by an independent third party and involves inspections of all aspects of your supplier’s facilities, including equipment and processes used in production, quality control procedures, and management practices.

The purpose of an on-site factory audit is to show you how effective your supplier is at achieving their goals–and it can provide you with valuable information about what steps they should take in order to improve their performance. For example:

  • How well do they manage their inventory? Are orders being fulfilled promptly enough? Do they have enough space inside the facility for additional employees or machinery if needed?
  • Is there evidence that suppliers follow safety protocols when handling hazardous materials (such as cleaning chemicals), related to those materials’ use during production activities at the facility itself (e.g., using gloves when working around those chemicals).
  1. Post-shipment audit

A post-shipment audit is a quality check on the goods after they have been shipped. It can be done by either the client or supplier, but it’s important to make sure that you’re getting an independent third party to conduct your audits.

Post-shipment audits are a good way to check for quality issues before they happen, such as:

  • Incomplete information on the product description sheet (PDS)
  • Missing parts or substandard materials
  1. First incident audit (FIA)

FIA is a type of audit that’s used to evaluate the reliability, quality and safety of a supplier’s facilities. It involves an inspection team from your company who are trained to spot potential problems in the factory.

The main benefit of FIA is that it can help you identify any potential issues before they become big enough for your business to suffer major losses. For example, if there are many instances where parts aren’t correctly assembled or finished correctly, this could lead to accidents at work sites or even loss of life if someone were injured during assembly process (e.g., using incorrect materials).

  1. Second incident audit (SIA)

A second incident audit (SIA) is conducted when a supplier fails to meet the requirements of an FIA. The purpose of this type of audit is to evaluate the supplier’s corrective actions and determine if they are effective in preventing future accidents from occurring.

The SIA report should be made available to all suppliers who were part of that specific SIA, along with any other relevant documents or records related to your relationship with them.

A factory audit is the best way to check the quality of a supplier before you purchase from them

Apart from inspecting the products, factory audit also includes social compliance audit and environmental audit. Social compliance audit inspects that a healthy, safe and ethical work environment is maintained. Environmental audit is all about assessing the supplier’s environmental performance is in sync with the compliance with local environmental laws and regulations.

Reputed inspection companies in China can conduct factory audit for both new and existing suppliers, but it’s especially useful if you’ve had trouble with your current supplier in the past. If there are the problems with your current manufacturer, then a factory audit will help you identify those problems so that they don’t happen again. It will help improve both your own quality assurance processes as well as those of the factory.

Conclusion

The value of a factory audit is that it’s a unique way to look at your supplier from a different perspective. By evaluating the quality of their processes and equipment, you can make sure you’re getting what you need from them. And if an audit reveals problems with process or equipment, it could help prevent future issues in your supply chain.

Apr, 25
2016
Company audit Guangzhou

The Importance of Auditing Firms

Running a firm with hundreds of employees is not at all an easy task. Apart from being the provider for revenue to the employees, one has to think about the capital derived by the company. This is where the main dominant factor of auditing comes in the picture. Auditing is the process of analysing and evaluating the financial situation of the company. The profits derived by the company, the losses incurred are all scrutinized at the time of auditing. It is one of the most crucial phases in a company. A good system of internal control is essential for achieving the target of the company to stand at par with its competitors. Some corporations maintain their own team of auditing members to keep a regular check on the executives and stockholders. Many companies conduct regular audits in their company with a group of an internal accountant and other professionals. Even though you maintain an internal auditing process for your company, it’s vital to show the financial report to the outside agency or an independent auditing firm that has no connection with the organization.

It’s important to know the need of the auditing firm to understand the process of auditing. Read below:

The Need for an Auditing Firm

As we all know auditing is a tasking job, it has to be done with proper and reliable professionals. There are times when only an expert can check the accounts book of the company. These firms include people who have got a certificate and those who are experienced. They have a proper idea about the methods of maintaining and auditing the books of the company in a systematic way. There are a few benefits that the corporations or any business enjoy due to auditing.

Benefits of Auditing

  • An audit tries to add real value to the business or an organisation. In this way, it wins the confidence of the investors which automatically leads
  • to an increase of the share holders and investors.
  • A company understands the flow of revenue through the process of auditing. This makes them aware of the loopholes that need to get fixed which can bring them good profit in the following year.
  • Once a company gets a proper understanding of the cash flow, they get a hang of the mistakes that were made in the year. This will alert them and compel them not to repeat the same mistake. It makes a company cautious of its own blunders.
  • Auditing is a very intense procedure that allows a corporation to keep a record of their each and every activity at every level of the system. This will eventually reduce the risk of any major blunder in the future.
  • An internal audit is extremely helpful in time of crisis. For instance, it helps in decision-making in tough times about any investment plans or in managing the external pressure.

Company audit in Guangzhou is vital for the proper functioning of the company. The profits derived by the company and the losses incurred are all registered during the time of auditing. This makes a corporation aware of the loopholes that should be kept in mind for the following year and the same mistake is not repeated again. This influences the profit gains and also ensures smooth functioning of the company.