Things manufactured in China are with quality. There are very few complaints on goods rejection by the importers. They are still number one in exports. This is because every retailer does a proper China factory audit before importing goods. They hire service from factory audit agencies in China. This is a third-party audit. Every importer must follow this compliance to avoid the loss or by receiving defective products from China. We have discussed here a few factories audit a retailer must conduct before importing goods from that manufacturer.
Social Compliance Audit in China
China is the only communist nation, which has pulled the world attention for its development in all fields. However, the fear of a strike, shutting down factories and labor issues cannot be sorted out in China. A retailer must conduct a social compliance audit. This will see the below-mentioned features.
- The factory is filing proper statutory compliance.
- Check for past labor disputes if any, which can affect the in the future date.
- Your third-party factory auditors will discuss with some of the labor to know who healthy is their work nature and their compensation.
- They check all sorts of payments are made properly to their staffs and vendors.
- Fire safety and labor safety
- Bank Accounts
This audit is necessary to carry even you do one-time business. The social audit you can do separately too. However, there are many multi-national audit firms, who carry this under complete factory audit. This will be cheaper than doing it separately.
Factory Compliance Audit in China
This is the next level of audits after conducting a social audit. This is to deal with the Factory compliances. They are as follows.
- Factory ownership
- Factory license
You must check your manufacturer has renewed their license and are in business continuity. You must check the present state of ownership, and they are not in a deal to sell the factory to some other party.
AUP Audit
This is an agreed-upon procedure (AUP) audit. A retailer can give a checklist to carry an audit with its manufacturer. This will check your manufacturer can deliver the agreed products on time. They also do it in the agreed terms too. You can send a third-party audit company to do this audit in a factory.
Factory Audit Cost in China
The factory audit costs differ with the service providers. Today, online booking is cheaper and more convenient too for retailers. They give discounts and offers. They have special packages. This will be all-inclusive audits. You can also avail their special audits in a factory. It is advisable to discuss the cost before hiring a third-party audit firm. You can do this from your nation itself. All you have to do is to find a multinational audit firm having their branches in China.
China factory audit has enabled many retailers to do better business in China. It is advisable to search for the top inspection companies in China. You can hire the most trusted and reputed audit firm.
