Manufacturing audits are a cost-effective and comprehensive way to ensure vendors are reliable. A buyer may be working with a supplier for the first time or may be reassessing one of their current Chinese manufacturing partners.
Supplier evaluations include a variety of benchmarks offering companies insight into China factories’ management practices. Before placing an order buyers should learn why manufacturing audits can prevent serious and costly mistakes.
Verifying a Suppliers’ Legitimacy
Working with Chinese manufacturing companies comes with certain risks. Factory audits can mitigate or eliminate those risks. It’s impossible to verify an overseas supplier’s claims without prior industry experience. Utilizing audit feedback ensures the vendor has the necessary licenses and certifications required.
Confirming a Supplier’s Production Skills
Manufacturing audits allow for an “inside look” at manufacturing in China without the time and expense of traveling there. The auditor verifies the vendor’s machinery to verify the factory’s capacity and ability to produce the product. The audit can also verify the factory actually does have the experience to perform the manufacturing processes required. What percentage of the product will subcontractors be responsible for? Are they qualified? Even though elements of production may very well be subcontracted the buyer needs to know where and how the product is being manufactured.
Verifying a Factory’s Storage Capacity and Organizational Skills
In-depth supplier evaluations are used not only to confirm a Chinese manufacturer’s ability to meet the vendor’s claimed production lead times but also verify the size and condition of the factory’s storage facilities. Chinese manufacturing audits can be used to reveal and better understand suppliers’ management structures as well.
Authenticating Quality Management Systems
The results of an audit’s quality assurance assessment should confirm a factory’s methodology in ensuring a product’s final quality. The auditor will confirm details such as how the buyer’s specifications are considered and adhered to, how goods are handled during production, and methods used to calibrate machinery to best ensure long-term quality control. Quality indicators at every level of the organization can be designed to ensure all critical details are addressed.
Ensuring Social Accountability
Manufacturing audits also provide a comprehensive review of overseas factories to ensure all administrative documents follow local regulations. According to the SA 8000 standard an auditor can review human resource records as well as interview workers to gain additional insight into the factory’s true working environment. Overseas buyers then receive written verification and can therefore be confident their supplier’s facilities are clean and safe for workers.
Chinese manufacturing, as well as manufacturing anywhere in the world, inherently involves risk. Many companies have partnered successfully with ITI Manufacturing to manage those risks. ITI performs its own audit based on your product’s specifications as well as your company’s requirements, needs, and practices. A factory’s demonstrated ability to manufacture a product is only part of the equation.
Call us at (888) 574-6823 today to learn about American Guaranteed China Manufacturing.