The Necessity of Factory Audits for Sourcing Building Materials
Have you ever had the
idea of launching your own startup in the construction industry? Well, you will
have to monitor several aspects simultaneously while running a construction business.
Construction businesses are not very easy to handle as several small
businesses. Besides other aspects of a construction business, the business
owner needs to conduct regular factory audit as well to evaluate the state of
his business.
The necessity of
factory audit increases while you’re sourcing building materials from foreign
countries. Such audit sessions are generally conducted by professional auditors
who analyze past records in detail. A fruitful audit session is mandatory to
ensure that a specific supplier is capable of meeting the expected product
quality.
Anyway, as the owner
of a business, you need to understand the procedure of auditing to have an eye
on the functions of the auditors. However, you might not need to conduct audit
sessions frequently if you find a reputed China building materials
sourcing agent. Tracking the regular audits will help you run your business
in a more efficient way.
This article will
clarify your idea of auditing by describing the procedure in a detailed way.
Let’s check out the entire process in brief-
- The initial phase of factory
auditing consists of two different segments. The first one is
questionnaire screening while the other one is verification screening. The
first segment focuses on enquiring suppliers about their products and
services. In this segment, you can evaluate the work ethics and work
strategies of different suppliers. That’s truly helpful for deciding which
supplier you should tie-up with. In the second segment, you inspect the
authenticity of the suppliers and their services. Throughout the second
segment, you can explore numerous factors related to product delivery and
other services offered by the suppliers.
- Once the identification and
verification segments are completed, you should look for the reliability
of the suppliers in terms of sources and backups. After the completion of
the first phase, some suppliers get shortlisted by business owners. In the
second phase, each supplier’s capability is judged based on their backup
stocks and circulations.
- Most small and medium business
owners don’t proceed with the auditing procedures after the first two
phases. However, if you’re ambitious to take your business to the next
level of progress, let the auditing procedure go on. Generally, the third
phase of the auditing procedure involves document verification. For this,
you will need a dedicated team of auditors to cross-check all the
documents provided by the suppliers. Check with your company lawyer
whether those documents are legit and legal or not. Several fraudulent
companies are spreading all over the market. The third phase of auditing
is quite necessary to protect your business from such fraudulent
suppliers.
- You should hire a professional
inspection team to examine the production area of the suppliers. Remember
that the production area states a lot about a supplier’s production and
sourcing capacity. The size and condition of the production area of a
sourcing company is a crucial parameter to determine if the company offers
good services or not. You can contact a local China
building materials sourcing agent to conduct such inspections
without being present physically.
- Evaluating the supplying
company’s quality control measurements is the focus of the fifth phase of
the auditing process. This is the most vital phase of the entire
procedure. In this process, you understand whether the quality control
measurements of a certain supplier can match your requirements or not.
- In the sixth phase, you need to
re-check the social compliance of the supplying company to analyze their
relationships with the clients. This process will clarify if having a
contract with the company will be good for you or not.
- The final phase, phase seven,
summarizes the indications of the six previous steps. So, you get a clear
idea of the sourcing company and its functions in the phase. That makes it
easier for you to take a final decision about the company.
If you’re a business
owner, you must know the importance of regular audits in the functions of your
business. Ensure that your company’s auditors are executing all the steps
mentioned during audits. That will save your business from further hazards.
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