There are thousands of suppliers in China, each specializing in their own area of expertise. Do they all offer the same level of quality? Definitely not. This is why due diligence is needed when it comes to selecting the best supplier for your business needs.
Supplier auditing takes place before inspecting a potential supplier and throughout the factory inspection. If for any reason you cannot audit a supplier with clear and accurate documentation, you should not do business with them. Here are a few supplier criteria that should be included in a supplier audit, however certain criteria might be of higher importance depending on your business’s needs.
- A profile of their factory (business registration, number of employees, etc.)
- Their production capacity at each step in the manufacturing process
- Factory infrastructure (power outages, generators, transport, security, etc.)
- The condition and age of their machinery and equipment
- What quality assurance systems they have in place (make sure quality control is not carried out by the production department)
- Social compliance (employee conditions, basic amenities, safety, etc.)
- Material supply chain (where are materials sourced and how are they transported)