For those engaged in foreign trade exports, it is always difficult to avoid the factory audit requirements of European and American customers. But you know:
☞ Why do customers need to audit the factory?
☞ What are the contents of the factory audit? BSCI, Sedex, ISO9000, Walmart factory audit... There are so many factory audit items, which one is suitable for your product?
☞ How can I pass the factory audit and successfully receive orders and ship goods?
1 What are the types of factory audit?
Factory audit is also called factory audit, commonly known as factory audit. Simply understood, it means inspecting the factory. Factory audits are generally divided into human rights audit, quality audits and anti-terrorism audits. Of course, there are also some integrated factory audits such as human rights and anti-terrorism two-in-one, human rights and anti-terrorism quality three-in-one.
2 Why do companies need to conduct factory audits?
One of the most practical reasons is, of course, to meet the customer's factory audit requirements to ensure that the factory can successfully receive orders. Some factories even take the initiative to accept factory audits in order to expand more overseas orders, even if customers do not request them.
1)Social responsibility factory audit
fulfill customer's request
Fulfill customer requirements, consolidate customer cooperation, and expand new markets.
Effective management process
Improve the level of management and management systems, increase productivity and thereby increase profits.
Social Responsibility
Harmonize the relationship between enterprises and employees, improve the environment, fulfill responsibilities, and build public goodwill.
Build brand reputation
Build international credibility, enhance brand image and generate positive consumer sentiment towards its products.
Reduce potential risks
Minimize potential business risks, such as work-related injuries or fatalities, legal proceedings, lost orders, etc.
Reduce costs
One certification caters to different buyers, reducing repeated audits and saving factory audit costs.
guaranteed quality
Prove that the company has quality assurance capabilities to enhance customer satisfaction.
Improve management
Improve corporate quality management levels to expand sales and increase profits.
build reputation
Improving corporate credibility and competitiveness is conducive to the development of international markets.
3) Anti-terrorism factory audit
Ensure the safety of goods
Effectively fight crime
Expedite shipment processing
* Anti-terrorism factory audits only began to appear after the 9/11 incident in the United States. They are mostly requested by American customers to ensure the transportation safety, information security and cargo status of the supply chain from the beginning to the end, thereby preventing the infiltration of terrorists and also benefiting Combat cargo theft and other related crimes and recover economic losses.
In fact, factory audits are not just about pursuing a "passed" result. The ultimate goal is to enable enterprises to establish a safe and effective management system with the help of factory audits. The safety, compliance and sustainability of the production process are the keys for enterprises to obtain longer-term benefits.
3 Introduction to popular factory audit projects
1)Social responsibility factory audit
definition
The business community is advocated to comply with the social responsibility audits of its members' global suppliers conducted by the social responsibility organization BSCI (Business Social Compliance Initiative).
Scope of application
All industries
Support buyers
European customers, mainly Germany
Factory audit results
BSCI's factory audit report is the final result without a certificate or label. BSCI's factory audit levels are divided into: A, B, C, D, E, F and zero tolerance. The BSCI report of AB level is valid for 2 years, and the CD level is 1 year. If the E level audit result does not pass, it needs to be reexamined. If there is zero tolerance, Tolerance terminates cooperation.
Sedex factory audit
definition
Sedex is the abbreviation of Supplier Ethical Data Exchange. It is a data platform based on the ETI standard of the British Ethics Alliance.
Scope of application
All industries
Support buyers
European customers, mainly the UK
Factory audit results
Like BSIC, Sedex's audit results are presented in reports. Sedex's evaluation of each question item is divided into two results: Follow Up and Desk Top. Different members have different requirements for each question item, so there is no strict sense of "pass" or "pass", it mainly depends on the customer's judgment.
definition
SA8000 (Social Accountability 8000 International standard) is the world's first international standard for ethics formulated by Social Accountability International SAI.
Scope of application
All industries
Support buyers
Most are European and American buyers
Factory audit results
SA8000 certification generally takes 1 year, and the certificate is valid for 3 years and is reviewed every 6 months.
EICC factory audit
definition
The Electronic Industry Code of Conduct (EICC) was jointly initiated by international companies such as HP, Dell, and IBM. Cisco, Intel, Microsoft, Sony and other major manufacturers subsequently joined.
Scope of application
it
Special Note
With the popularity of BSCI and Sedex, EICC also began to consider creating a social responsibility management standard that is more suitable for market needs, so it was officially renamed RBA (Responsible Business Alliance) in 2017, and its scope of application is no longer limited to electronics. industry.
Support buyers
Companies in the electronics industry, and companies where electronic components are critical to the functionality of their products, such as automotive, toys, aerospace, wearable technology and other related companies. These companies all share similar supply chains and shared goals for ethical business practices.
Factory audit results
Judging from the final results of the review, EICC has three results: green (180 points and above), yellow (160-180 points) and red (160 points and below), as well as platinum (200 points and all problems have been rectified), gold ( Three types of certificates: 180 points and above and PI and Major issues have been rectified) and Silver (160 points and above and PI has been rectified).
WRAP factory audit
definition
WRAP is a combination of the first letters of four words. The original text is WORLDWIDE RESPONSIBLE ACCREDITED PRODUCTION. The Chinese translation means "responsible global garment manufacturing".
Scope of application
Garment Industry
Support buyers
Most are American clothing brands and buyers
Factory audit results
WRAP certification certificates are divided into three levels: platinum, gold and silver, with certificate validity periods of 2 years, 1 year and 6 months respectively.
ICTI factory audit
definition
The ICTI Code is an industry standard that the international toy manufacturing industry should abide by formulated by ICTI (International Council of Toy Industries).
Scope of application
Toy industry
Support buyers
Toy trade associations in countries and regions around the world: China, Hong Kong, China, Taipei, Australia, the United States, Canada, Brazil, Mexico, the United Kingdom, Germany, France, Denmark, Sweden, Italy, Hungary, Spain, Japan, Russia, etc.
Factory audit results
ICTI's latest certificate level has been changed from the original ABC level to a five-star rating system.
definition
Walmart's factory audit standards require Walmart's suppliers to comply with all local and national laws and regulations in the jurisdictions where they operate, as well as industry practices.
Scope of application
All industries
Special Note
When legal provisions conflict with industry practices, suppliers should abide by the legal provisions of the jurisdiction; when industry practices are higher than national legal provisions, Walmart will give priority to suppliers that meet industry practices.
Factory audit results
Walmart's final audit results are divided into four color levels: green, yellow, orange, and red based on the different degrees of violations. Among them, suppliers with green, yellow, and orange grades can ship orders and receive new orders; suppliers with red results will receive the first warning. If they receive three consecutive warnings, their business relationships will be permanently terminated.
2) Quality audit
definition
ISO9000 factory audits are used to confirm the company's ability to provide products that meet customer requirements and applicable regulatory requirements, with the purpose of improving customer satisfaction.
Scope of application
All industries
Support buyers
global buyers
Factory audit results
The approved mark of ISO9000 certification is registration and issuance of a certificate, which is valid for 3 years.
Anti-terrorism factory audit
C-TPAT factory audit
definition
C-TPAT factory audit is a voluntary program initiated by the U.S. Department of Homeland Security Customs and Border Protection CBP after the 9/11 incident. C-TPAT is the English abbreviation of Customs-Trade Partnership Against Terrorism, which is the Customs-Trade Partnership Against Terrorism.
Scope of application
All industries
Support buyers
Most are American buyers
Factory audit results
The audit results are scored based on a point system (out of 100). A score of 67 or above is considered passing, and a certificate with a score of 92 or above is valid for 2 years.
Frequently Asked Questions
Q
Now more and more major brands (such as Wal-Mart, Disney, Carrefour, etc.) are beginning to accept international social responsibility audits in addition to their own standards. As their suppliers or want to become their suppliers, how should factories choose suitable projects?
A
First of all, factories should consider corresponding or universal standards based on their own industries. Secondly, check whether the review time can be met. Finally, look at the audit fees to see if you can take care of other customers and use one certification to deal with multiple buyers. Of course, it is best to consider the cost.
Post time: Nov-14-2023