Factory inspection, i.e.Factory Audit(Factory Audit (FA) is the process of systematically evaluating a factory's quality systems, compliance levels, and supply chain management to ensure that the factory meets international standards, industry norms, or customer-specific requirements. Its core objective is to safeguard product quality, workers' rights, environmental sustainability and supply chain security, and it is commonly used in international trade and cross-border sourcing scenarios.
What is factory inspection? What are the types of factory inspection? What are the contents of a factory inspection?

I. Main types of factory inspection

(i) SocialResponsible Factory Inspection(Human Rights Factory Inspection)

  1. Core standards: SA8000, BSCI, SEDEX-SMETA, WRAP, etc.
  2. Applicable scenes: clothing, textile, electronics and other labor-intensive industries, especially enterprises exporting to the European and American markets.
  3. Typical customers: International brands such as Walmart, Disney, ZARA, etc. usually require their suppliers to pass this type of factory inspection.

(ii) Quality inspection of factories (technical inspection of factories)

  1. Core Standards: ISO9001 Quality Management System, FCCA, SQP, etc.
  2. Focus: Production process control, product inspection standards, equipment maintenance records, raw material traceability, etc.
  3. Industry characteristics: electronics, automotive parts, medical devices and other industries that require high product precision and safety.

(iii) Environmental Management Factory Inspection

  1. Core standards: ISO14001 Environmental Management System, Higg FEM, EU REACH, etc.
  2. Audit contents: wastewater and exhaust gas emission compliance, hazardous waste treatment, energy consumption management, environmental protection license, etc.
  3. Typical industries: chemical, food processing, packaging manufacturing and other industries that may have an impact on the environment.

(iv) Counter-terrorism security inspection

  1. Core standards: C-TPAT, GSV, SCAN, etc.
  2. Key requirements: supply chain physical security (e.g., container sealing, access control systems), employee background checks, transportation process monitoring, counter-terrorism training records, etc.
  3. Scope of application: Businesses exporting to the United States, especially supply chains involving high-value or sensitive commodities.

(v) Customized factory inspections

  1. Features: Comprehensive auditing standards developed by international brands based on their own needs, integrating multi-dimensional requirements such as social responsibility, quality and safety.
  2. Typical cases: Disney factory inspection emphasizes the protection of intellectual property rights, McDonald's factory inspection focuses on food supply chain hygiene management.

Second, the core content of factory inspection

Although the different types of factory inspections have their own focus in terms of what they examine, they usually address the following key areas:

(i) Areas of social responsibility

  • Management of child and underage workers: Child labor in factories is strictly prohibited, while special attention and protection are given to the working conditions of underage workers.
  • Protection of labor rights and interests: Comprehensive inspections of factories for forced or unfair labor, such as withholding workers' ID cards, wages, and other violations.
  • Compensation and working hours management: Ensure that workers receive reasonable compensation, that working hours are in strict compliance with labor laws, and that wages are paid on time and overtime pay is provided in accordance with the law.
  • Worker welfare and health protection: Factories are required to provide workers with the necessary social welfare, medical check-ups and health protection measures.

(ii) Quality management system

  • Product quality control: Comprehensively check whether the quality control system from raw material procurement to finished product output is sound, and whether there is a qualified quality inspection process.
  • Production process standardization: Ensure that the production line operates in strict accordance with standard operating procedures to minimize human error.
  • Document management standardization: Review whether the documents of the quality management system are complete, including production records, test reports, operation specifications and other important documents.

(iii) Environmental protection dimension

  • Waste management: Examine how the factory handles waste generated in the production process and whether it is equipped with waste water and exhaust gas treatment systems that meet environmental requirements.
  • Energy use efficiency: Assess whether the plant has practical energy-saving measures in place and whether it achieves rational use of energy and natural resources.
  • Environmental management system construction: Check whether the factory has passed ISO14001 and other environmental management system certifications, and whether it conducts environmental impact assessments on a regular basis.

(iv) Counter-terrorism and supply chain security

  • Factory safety management: Check whether the factory's safety measures, such as monitoring system, access control, visitor registration system, etc., are perfect.
  • Supply Chain Security and Safety: Concerned about the security of the cargo transportation process and the availability of stringent anti-theft and anti-terrorism measures.
  • Employee background checks: whether employees, especially those engaged in cargo transportation and warehousing, have been security vetted.

(v) Productive capacity and supply chain management

  • Production capacity assessment: Examine whether the factory has sufficient production capacity to cope with the demand for orders, and whether it has appropriate production equipment and technical support.
  • Supplier management level: Assess whether the supply of raw materials is stable, whether the qualifications of suppliers have been scrutinized, and whether there are potential risks in the supply chain.

(vi) Labor relations and workers' rights and interests

  • Labor contract management: Check whether factories have signed legal and valid labor contracts with their employees.
  • Guarantee of trade union freedom: to confirm whether employees have the right to form trade unions freely and whether trade union activities are unreasonably restricted.
  • Employee Complaint Mechanism: Find out if the factory has an open channel for employee complaints and how it handles employee complaints and grievances.

(vii) Certification and compliance checks

  • Certification Verification: Confirm that the factory has passed the necessary certifications, such as ISO9001, ISO14001, CTPAT, and so on.
  • Legal and regulatory compliance: Review the factory's compliance with local laws and regulations and international standards, such as labor laws and environmental laws.

Third, the preparation points of factory inspection

  1. Document management: Establish a clear document filing system to ensure that all records (e.g., attendance, inspection reports) are traceable and comply with standard requirements.
  2. Staff training: for differentType of Factory InspectionConduct special training (e.g., anti-terrorism awareness, quality control processes) to avoid nonconformities due to improper employee responses during audits.
  3. Mock Audit: A third-party organization is hired to conduct a pre-audit to identify potential risks in advance and develop a corrective action plan.
  4. Continuous Improvement: Incorporate the results of the factory inspection into the daily management of the enterprise, and continuously optimize the level of compliance through the PDCA cycle (Plan-Do-Check-Act).

Fourth, the significance and challenges of factory inspection

  1. Business value: through factory inspection can obtain access to international brand orders, enhance the competitiveness of the supply chain.
  2. Risk Avoidance: Reduce trade barriers, lawsuits, and brand reputation damage caused by compliance issues.
  3. Management Enhancement: Promote enterprises to establish systematic quality, environmental and social responsibility management systems to achieve sustainable development.
  4. Challenge: Large differences in standards between customers (e.g. BSCI vs SA8000 in terms of audit depth) can lead to duplicate audits and increased costs.

 

In short, factory inspection is an indispensable part of globalized trade. Enterprises need to formulate compliance strategies according to their own industry characteristics and customer needs, and at the same time improve the efficiency and transparency of factory inspection with the help of digital tools (e.g. supply chain management platforms).

Related News

Online Customer Service