Your supply ultimately determines the quality of products that you market to your customers. In essence, it would not be untrue to say that your supplier is wholly responsible for the reputation of your brand in the market- a good supplier can send your sales and profits rocketing to the sky (So deciding which type of quality audit is best for supplier is important) , whereas a bad one can do just the opposite, send you downhill not in your balance sheets but also in the eyes and minds of your customers.
Therefore, it is extremely important to carefully evaluate and weigh your decision as to whether or not you wish to hire a particular business as your supplier. After all, you’re entrusting your supplier with the most important aspect of your business: customer satisfaction.
So How Exactly Do You Make Sure That Your Decision To Hire A Particular Supplier Will Not Cost You Your Business?
It’s fairly common for importers to use no formal measures or means to select their suppliers. They simply hire them on a hunch, based on no previous due diligence or investigation to look into the scope of the supplier’s facility to determine whether or not they meet with your expected quality standards.
Other importers might take a step more than doing absolutely nothing and visit the supplier’s premises themselves. They visit the factory and then decide on their own whether or not they are satisfied and wish to hire that supplier.
Quality Audits
However, it is seen that the most successful importers all over the world have one thing in common- they conduct formalized quality audits before deciding which supplier to work with. This way, they can successfully rule out any supplier that is not in a position to provide them with the quality and services that are expected of them.
These successful importers are aware of how critical a decision it is to hire a supplier, and therefore undertake their due diligence into making sure that all their suppliers are up to mark to fulfill their customer’s expectations. They are also able to avoid problems in the future that arise due to poor suppliers who are unable to produce exactly what you have asked them to.
ATI HongKong
ATI is fully equipped to help you in this critical ordeal: offering you two of the most popular and effective quality audits, both of which are based on the ISO 9001 standards. The basic supplier qualification audit (SQA), as well as the extensive factory audit (EFA), provides you with everything that you need to know in order to make a fully informed decision about hiring a supplier.
Let’s now look into these two kinds of supplier audits so that you can decide which one meets your requirements.
What Is The Supplier Qualification Audit?
ATI’s basic supplier qualification audit covers the overall essential operations of the supplier and is suitable when the importer simply wishes to have a broad overview of the supplier’s facility and qualifications.
This basic supplier qualification audit includes the following information:
- A full facility walkthrough, including checking production equipment and environment
- Interviews with management personnel
- A review of the staff roster for the presence of child/forced labor
- A report of findings with photos of facility, operations, licenses, and certifications
- Verification of the supplier’s general information, such as the facility size, number of employees, and business history.
Although much of this information might already be provided to you on the supplier’s website or other third-party resources, it is always a good idea to confirm these before you finalize your hiring decision. This is because overseas suppliers aren’t known to be the most honest businessmen in the world- in fact, they are known in their ability to embellish their capabilities in order to aptly attract foreign buyers who they predict will not verify this information.
Although the basic supplier audit framework lacks a lot of detail, the information provided is essential if you wish to start working with a new supplier. In addition, in case you have any specific requests that you wish for our team to entertain, you can always discuss it with us.
Do you want a more in-depth quality audit? Then you may wish to select the more extensive factory audit as your choice.
In case the basic supplier audit offered limited information to you, you might want to go for the extensive factory audit. This quality Factory audit in China contains not only all the information found in the basic supplier audit, but also an in-depth detailed review of the supplier’s quality management systems including information on the following:
- Reviewing and photographing production records
- Checking the production environment and equipment in- depth
- Assessing the supplier quality management system (QMS) organization
- Verifying incoming quality controls, during production controls and finished goods controls
- Confirming any on-site lab testing capabilities
- Verifying research and development capabilities
Each of the above-mentioned components is thoroughly verified. And assessed through a factory visit. That reviews all available records as well as information collected through on-site interviews. With the relevant management personnel and factory workers.
If you feel overwhelmed by extensive and complicated reports that require ample time to read and grasp. We’ve got you covered. We’re aware of how time-sensitive the manufacturing business is, every moment counts. This is why the supplier audit reports that we produce are organized in such a way. That they are easy to read and grasp. Through which you’ll be able to understand your supplier’s capabilities in a quick moment.
Quality Audit Checklist
One of the main ways you’ll see this in the reporting is that we score the factory based on our own points-based rating system. Once the audit is complete. Our auditor assigns the supplier a score for their compliance with each of the sections of our quality audit checklist:
- Design control
- Purchasing control
- Storage management
- Incoming inspection
- Production control
- Final product inspection & testing
- Control of measuring & testing equipment
- Resource management
- Continuous improvement
- Social & environmental responsibility
All of the information that you’ll require will be organized in an easy-to-use report. That is detailed enough for you to fully understand the qualifications of your supplier. But precise enough to not waste your time sifting through unnecessary pages to locate important information. We’ll provide you with all, and just, what you need to make an informed decision regarding your supplier.
So how can you choose the best quality audit that suits your needs?
Consider the following Pointers:
In case you are on a low-budget and short of time, the basic supplier qualification audit will suit you best. The supplier qualification audit will cost you about the same as a one man-day inspection in your service location. In addition to this, you’ll receive the audit report on the same day. Typically within 24 hours after completion of the audit.
In comparison to this. the extensive factory audit will cost you the same as two man-days in your service location. As it offers a much more intensive review of the supplier and his/her facility. This extensive report will be delivered to you within three to five working days. As the detailed report requires time to conduct research and speak to factory staff if required.
However, it is useful to keep in mind that the extensive supplier audit offers a lot more on the plate- useful. Intricate details that you might otherwise look at and later on regret. For a little more money and time. You’ll have yourself a report that is worth much more than what you’ve paid for it.
If time and money are not constraints for you. Mentioned below are four more factors that you may wish to consider when choosing between quality audits:
1. Prior Relationship History With A Supplier
If you’re dealing with a supplier that has already shown to be reliable in the past. Then you may forgo the extensive supplier audit in favor of the basic quality audit. However, even when dealing with new suppliers. There can be certain contextual clues that you may use to gauge the legitimacy and capability of the supplier. You can consider the following questions to ask yourself how you feel towards the new supplier:
- Has the supplier responded quickly and clearly to your emails?
- Has the supplier provided you any documentation regarding their capabilities?
- Have you received a product sample that meets your requirements?
In case you answered the above questions with a yes. Then basic quality audit might suffice for you to make sure that you take a calculated risk. While hiring the new supplier. However, in case you have any concerns with the above-mentioned points. Then an extensive factory audit may be more suited to your needs.
Any reputable supplier should be willing to accept a quality audit before you place an order. Consider any unwillingness to be a “red flag” and a good reason to look for an alternative supplier.
2. Your Order Value And Product Value
When deciding upon which quality audit to go for. You must always consider the worth of the products that you are ordering.
If your order consists of high-value products. Or a fairly large product size shipment. then an extensive factory audit is recommended. As the worth of your order increases. It is always a good idea to mitigate risk as much as you can by carefully checking the reliability of the supplier.
On the other hand. If you are ordering a one-time order of promotional goods that are not too high in value or cost. And do not plan on working with this supplier in the long run. Then a supplier qualification order might suffice for you.
When comparing the time and money required to conduct a professional quality audit. With the cost of an order consisting of thousands of products. You’ll realize the cost is worth insuring yourselves against the risk of receiving poor quality products. That might cost you thousands of dollars that you’ll never be able to recover.
3. Can You Audit The Supplier Yourself?
You might be wondering whether you really need a third-party to carry out the audit on behalf of you. What if you just visit the factory yourself to see that everything is in order. And then select the supplier if you feel satisfied?
It is important for you to remember that in most cases. A professional auditing company can elicit a lot more information than you are likely to get on your own. Your view of the factory is also likely to be limited. As staff leading you on a tour of the facility typically control which areas you see and which you don’t. They want to present themselves in the best way possible.
And without detailed knowledge of what specific areas to look at. And how to assess each, you may conclude your visit without an accurate understanding of how qualified this supplier is.
4. How Much Of A Risk Are You willing to bear?
When deciding upon which quality audit to go for. It is useful to consider what kind of risk you are willing to take with your supplier.
But there are several objective consequences you may face with higher supplier risk, such as:
- Quality issues – often caused by poorly managed internal quality controls
- Production and shipment delays – often due to poor organization and production or materials management
- Factory closure – usually caused by financial troubles or noncompliance with local law
The more detailed of an audit you ask for. The more easily you’ll be able to forecast if any of these issues are likely to occur in the future. And prepare for them accordingly.
Conclusion
No matter how well you trust your intuition. It is always a good idea to carry out a formal quality audit before hiring a supplier. It’ll save you thousands of dollars (as well as your company’s reputation) in the future. Go through the value of your order. As well as other details such as the previous supplier relationship. To decide how much of a detailed audit fits your needs.