Differentiate a Trading Company and a Factory
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4 WAYS TO DIFFERENTIATE A TRADING COMPANY AND A FACTORY

Do you wish to source or contract directly with a factory to produce your goods through a trading company?

Ever found yourself wondering, what is a trading firm? A trading firm, also referred to as a vendor, acts as an intermediary that links consumers and businesses without any interference in the possession or development of the product offered for sale. And you may discover that several of the sites registered are not actually the factories producing the goods displayed while searching on websites such as Alibaba and Global Sources.

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Why Supplier Audit Program Is A Must Have For Fashion Retailers Before CNY?

As a fashion retailer, you may have noticed that not only is the industry becoming more and more competitive. With new brands launching every other day in terms of audit program.

But also that the consumers are becoming highly demanding; they expect their products to be of high quality, free of any kinds of defects. But also delivered to them as quickly as possible. A rather complex task to achieve while keeping costs low but profitability high.

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factory and social audit
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Factory audit and Social Audit

Factory Audits are conducted in order to make sure whether a supplier is capable to produce the specified products in his factory while meeting all necessary criteria. Not all producers face factory audits, but those who go through factory audits are actually the most well rated and most demanded, However general certifications lack regular checkups and do not keep suppliers accountable. Therefore they have no reason to maintain a quality standard.

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Quality Inspection in Asia

Inspection means examining the products and processes in detail to find out any pertaining defects and flaws respectively. MIL-STD 105 E has a derivative standard as ISO 2859 which describes inspection as an action that measures, analyzes and tests the feature(s) of the product or service and derives results, these results are then compared with standard features provided before placing the order, this is done to justify if product/service has prescribed feature(s) in it or not. The inspection is done via inspection officers, who have checklists with them and are responsible for the comparison of activities being committed by the suppliers and actions they are obliged to commit to the quality standards.

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Importance of Factory Audit

Factory audit is conducted to ensure the supplier has a production plant which has enough capacity to produce the product and can manage to deliver the orders timely, the labor force is fully trained to design and construct a product, the raw material has good quality and the cost is according to market rates. This all is done in order to make sure that supplier is able to deliver the right order at right time, moreover, the factory audits also point out the lacking in a production department thus help the supplier to improve his work performance to survive in the market in a better way.

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Importance of Factory Audit or Supplier Evaluation

What is Factory Audit

A factory audit is a detailed analysis of factory performance regarding its capabilities to fulfill needs of consumers by providing outstanding services and products, to keep their employees satisfied, to negotiate with vendors efficiently and to maintain its plants and machinery. Factory audit is done in order to find out any possible errors committed purposefully or by mistake in the above-mentioned company tasks. Via factory audit it is assured that all present errors (if any) are highlighted by the proficient auditor/audit team and company is asked to correct them, after correction of those errors, revised record sheets are again consulted by auditors and if they find it satisfactory then audit is winded up in the form of audit report.

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