The audit report allows for the verification of a fact, or circumstance, in accordance to what had been projected. The points we normally mention in the articles of this blog come from the audits/visits to factories, also known as suppliers verifications.
The reason whereby we mention it all the time is that it is really essential. Not only to find out if our future supplier really exists but also to know their type of methodology, how responsible they are to their employees, what other products they might make for us and other details that will help us to have a clear profile of the factory from which we probably purchase the goods.
In the world of business audits, you should know there are many variables to know, for example, audits of quality processes, social audit, an audit of production processes – cleanness and organization— audit of laboratories and production control instruments, an audit of design departments and subjective evaluations.
All these are very important and each has to be detailed in the report you will receive from your export service provider.
Every audit must respond to the following questions: what are the really important processes in the production when we talk about our merchandise? what are the machines used in production? What is the condition of these tools? What basic systems, such as the state of the facilities or the supplier´s organization, are used in the manufacturing process? What parts are made by the supplier and which are bought from third parties? Do they comply with ISO standards? How many employees are there in the factory and how much machinery is in use?
How is the quality control process (raw material, product during the manufacturing and finished product) the factory performs? What parts of the production process are directly supervised by the factory´s staff of your future supplier? What parts of the process are not being performed by the manufacturer? What test is performed? What control instruments are used for testing? That´s why you should verify whether the manufacturer has his own laboratory and in what state it is: which tests are performed in the factory and which performed in third parties laboratories?
In this type of audits, it must be taken into account whether employees are wearing the proper clothing and attire when working, whether there are older people or minors working in the factory or whether the supplier meets environmental standards.
When we talk about performing an audit with regard to the design department, it is just to verify if our supplier has and creates their own designs. Or if in case we want to produce our own prototype, we will be able to directly do it with him or through another company.
Last but not the least, it is important that the report also gives us subjective assessments. This is to say, the final feeling of confidence the supplier gives the inspector, whether it seems to him the employees are active or they don´t have any work at all; whether he thinks it is a prosperous factory or one that is in bankruptcy.
After having all this information, it will be easier for you to understand the pros and cons of working with a supplier, and whether or not it is worthwhile to start negotiations with one of them.
If you need a company to perform your audits, click here.