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...]
The Real Purpose of Factory Audits? Evaluate and Prevent Risks.
I had a good discussion with a client whose background was in auditing for a Big Four accounting firm. He pointed that audits, in that context, is mostly about looking at what happened in the past. In contrast, when buyers request factory audits, the purpose is: To identify risks by pointing to gaps that might have a serious impact on business performance (and to avoid giving much business to a high-risk supplier) By making the most serious gaps obvious, to put pressure on the … [Read more...]
Why Do Most Chinese Dislike Processes?
I have written many times that most Chinese people are not process thinkers. By this I mean they tend not to spend time thinking of HOW to do something: what steps should we follow, what resources do we need, what results should we expect, how to optimize our approach, what issues can come up, etc. I was discussing this recently with a friend (from mainland China) and he had an interesting perspective. There are three reasons behind this, in his mind. 1. They want to show they are … [Read more...]