Organizations and business enterprises will require factory auditing and business inspection of the supplier company from whom they want to procure products or materials. They entrust the task of factory audit and inspection of supplier company with professional auditing and inspection companies. The auditing company go deep into the various aspects related to the production facility of the supplier. Also they will inspect the finance and bank accounts of the supplier and will also verify their legal status. After in-depth inspection and verification of all aspects of the supplier’s business the auditing company will submit a comprehensive audit report to their client and the client will pay the service charges to the auditor firm.
The reliable and trusted auditing company will ensure to provide the best quality service to the client and the entire operations will be absolutely free of conflict – of – interest activities. The most efficient and experienced inspection company will be able to submit the comprehensive audit report within 24 hours or even earlier. In order to inspect the quality control facilities of the factory, the inspection company will also carry out a laboratory testing during which they perform various lab tests to assess the lab.
Complete Factory Audit or Basic Factory Audit
In order to verify the various aspects of the supplier’s business, the inspection company will perform Complete Factory Audits. As part of the Complete Factory Audits, the inspection company will verify the ownership of the supplier company, collect details pertaining to the Directors and senior managers of the company and check the legal status, financial status and bank accounts of the company. Further the auditor firm will verify size of the supplier’s factory and inspect the production capabilities, machinery, materials and packing facilities. The “Verify Business” operation conducted by the inspection company will also include inspection of quality control methods, testing equipments, certifications obtained by the supplier and social compliance of the manufacturing unit and the supplier company. Those who can’t afford an expensive Complete Factory Audits can opt for Basic Factory Audit of the supplier company which will not include inspection of materials, packing facilities, quality testing and social compliance.
Inspection of non-manufacturing entities
Prior to starting business transactions with non-manufacturing suppliers such as agents, brokers, traders or distributors, it is very important to check and confirm size of the agency or distributor, the ownership, management, legal status and financial status of the supplier firm. This type of “Verify Business” activity by the inspection company in order to assess a non-manufacturing business firm is known as Complete Reseller Audit. Another type of inspection conducted by the auditor firm is known as Business License Check. The purpose of Business License Check is to confirm the official name of the supplier, its legal status, official address, business registration number and the person who is legally responsible for the business activities of the supplier company. The inspection company will also check the validity period of the business license issued to the supplier firm.
In-Process Inspection
The professional inspection company will carry out In-Process Inspection when the process of production is in progress. In-Process Inspection facilitates detection of quality issues and easy and fast resolution of those issues. As a result, delay in shipping can be avoided. Those who want to procure the products from the supplier opt for the In-Process Inspection when there are issues pertaining to quality control which may cause shipment delay and necessitate reworking or replacements.
