When I talk to someone who is contemplating whether they should work with a particular supplier, I advise them to visit the factory and/or have it audited. And this can lead to confusion, as the next question is usually "what type of audit?" Let's look at your factory audit options... … [Read more...]
What Are the Factory Assessment Reports Shown on Alibaba Worth?
About 10 years ago, I remember Global Sources was listing "verified suppliers". Good idea. And their competitors followed suit, showing factory assessment reports and anything that can make buyers confident. And I am not sure that has been a positive development, overall. The basic principle to be aware of when buying factory analysis/verification There is a basic principle that all buyers should be aware of: When you are not paying for an analysis/verification, you can't fully … [Read more...]
Brands and Retailers: Please Stop Doing Social Compliance Audits in Asia
Finbarr Bermingham and Cissy Zhou wrote an interesting article in the South China Morning Post, entitled Bribes, fake factories and forged documents: the buccaneering consultants pervading China’s factory audits. An interesting Linkedin discussion ensued. There is so much evidence of wrongdoing, nobody can deny social compliance audit reports are highly unreliable. As I wrote nearly 10 years ago, Social compliance audits don’t work! Worse yet, they push the factory to work with … [Read more...]
How To Validate Your Supplier’s Factory’s Production Capacity (From Abroad) [Podcast]
![How To Validate Your Supplier’s Factory’s Production Capacity (From Abroad) [Podcast]](https://qualityinspection.org/wp-content/uploads/2021/01/HowToValidateYourSuppliersFactorysProductionCapacityFromAbroad-500x445.jpg)
You can't visit suppliers in China due to coronavirus. How can you validate their production capacity without going on-site? As we head into 2021 travelling to see suppliers in Asia, in particular China, remains difficult for most buyers due to coronavirus restrictions. Even if you can travel, you face the risk of transit and a long mandatory quarantine period in a hotel before you're even able to conduct your business, so most buyers are staying at home for now. However, before placing an … [Read more...]
Exploring Good Manufacturing Practices (GMPs) [Podcast]
Time to pay attention to good manufacturing practices! Importers with suppliers over in Asia may benefit from adopting GMPs (Good Manufacturing Practices). What are they? How are they useful for managing and improving the performance of suppliers in countries like China? How do they fit in with quality audits, social compliance audits, and process audits? The basics are always a good starting point for any supplier management and development plan and GMPs represent the basic activities … [Read more...]
Exploring Process Audits | Vetting Chinese Suppliers (Part 7) [Podcast]
Why perform process audits? So far in this mini-series of podcasts about vetting Chinese suppliers we've discussed what quality audits and social compliance audits are and their respective benefits. Since auditing prospective suppliers is such an important part of vetting new suppliers, we now move on to another type of audit: Process audits. These audits focus on a supplier's manufacturing reliability and will aim to answer the questions: Are they truly experts in the production … [Read more...]
All You Should Know About Management System Standards & Auditing Them [Podcast]
![All You Should Know About Management System Standards & Auditing Them [Podcast]](https://qualityinspection.org/wp-content/uploads/2020/09/AllYouShouldKnowAboutManagementSystemStandardsAuditingThemPodcast-1140x445.jpg)
What are management system standards? Management system standards aren't 'just another tool.' When an organization is certified to one of these standards it's an important way to demonstrate that they're able to perform the tasks required to fulfill the objectives or needs of their clients and/or drive meaningful improvements in a specific area. Let's use ISO 9001 as an example. It's a QMS (quality management system) that, when put in place, shows that the certified company can reach … [Read more...]
Why Conduct On-Site Social Compliance Audits? [Podcast]
![Why Conduct On-Site Social Compliance Audits? [Podcast]](https://qualityinspection.org/wp-content/uploads/2020/08/WhyConductOn-SiteSocialComplianceAuditsPodcast-1140x445.jpg)
In part 6 of our mini-series of podcast episodes about vetting Chinese suppliers, I'm discussing social compliance audits. After regular factory audits are done on a prospective supplier, it may make sense to assess their social compliance, too. But are these audits into things like legal practices and health & safety truly everything that they promise? … [Read more...]
The Importance Of On-Site Factory Quality Audits [Podcast]
![The Importance Of On-Site Factory Quality Audits [Podcast]](https://qualityinspection.org/wp-content/uploads/2020/07/TheImportanceOfOn-SiteFactoryQualityAuditsPodcast-1140x445.jpg)
In this episode of the podcast, I discuss factory quality audits as a part of the new Chinese supplier vetting process. Loosely based on this article, you'll understand where these audits fit into the vetting process and the more formal benefits that they provide when you have narrowed down potential suppliers. … [Read more...]
Service Providers: Escape the Commoditization Trap
We compete with a number of other service providers, and over the years I have seen stark changes happen in some verticals. An interesting case study is the TIC (Testing, Inspection, Certification) industry. In 2005, importers were paying 500+ USD per man-day for QC inspections on consumer goods. Over the years, salaries and other costs went up, but the market price tended to go down. (I wrote before why some buyers always want a lower price.) What are the reasons? It is a combination of … [Read more...]