Our factory audit helps you verify the reliability of your supplier before placing the order and sending the payment to it. It allows you to know your production and technological capacity, your quality assurance system, your respect for the environment, your social responsibility, your financial situation, your suitability and more.

Did you know that most companies that have had problems with their imports have not audited or visited their suppliers before making their purchase orders?

With the Internet, it has never been easier to find potential suppliers around the world. However, if the Internet offers broad access to multiple sources of supply, the best ones will also be mixed with the worst. The system of payment terms for suppliers in Asia mainly involves the payment of a deposit of 30% of the total value of the order to initiate mass production. As these amounts can be substantial, you may want to make sure that you are sending money to the appropriate vendor.

You do not want to find out that the company to which you sent money to start making your application simply disappeared or is not able to manufacture your product properly as it should because it has limited resources because it works with your direct competitor, financial credit situation or is a stoner.

Our auditing services in China and other countries in Asia, which aim to verify the genuineness, capacity, seriousness, financial soundness and social compliance of your potential new partner, are designed to cover all aspects of risk management when you are running your import operation. When conducting a factory audit or supplier assessment in Asia before engaging time, money and energy with your new supplier, you will significantly reduce the risk of loss.

We have different types of audits, each covering different areas of these risks. You may decide to do a full background check or only part of it, depending on your goal and your budget. The investment to be made in this type of service is a very small value when compared to the risks of getting involved with an inadequate supplier abroad.

It is important to regularly audit your existing suppliers to ensure they are still in compliance with the image you had of them the first time you did business with them. In Asia, more than anywhere else, companies are changing rapidly and what they are capable of today in terms of manufacturing capacity may not be true 6 months later.

Some companies believe that only replacing products with quality problems would be enough to solve the problems generated by the lack of manufacturer audits and product inspections prior to shipment.

See the costs that should be paid by your supplier for non-compliant products:

• FOB cost of goods.
• Costs of customs expenses abroad.
• Cost of customs expenses in Brazil.
• Logistic costs of international transport.
• Logistic costs of transportation in Brazil.
• Costs of taxes paid in the internalization of products (II, IPI, PIS, COFINS, ICMS and other taxes).
• Opportunity costs. That is, you will stop selling the products and make a profit.
• Fines applied by customs inspection in Brazil.
• Commitment of the image / brand of your company in the market.
• Do not service your market.
• Civil liability for quality problems in Brazil.
• Other costs.

Simple Factory Audit:

The factory audit will help assess a manufacturer’s ability and performance to comply with the legal conditions of the contract, as well as the quality, packaging, quantity and other conditions of supply. It must be performed before the buyer makes an order with the new supplier and only needs one day to complete it. This is always done in the supplier’s factory. This service aims to assess the legal status of the plant, the profile of the plant, its employees, its outsourcers, licenses & documents, experience in the target product, existing customers, situation of production lines, supplier organization and production capacity, and a rapid check of the existing quality system. The advantages of this type of audit, in our opinion, are:

• Avoid frauds and inexperienced suppliers.
• Check if you are dealing with an intermediary (agent / trading) or factory.
• Know if your supplier can produce your target products.
• Check your experience in manufacturing the target products.
• Know if your supplier is a viable source.
• Verify that the chosen factory has the necessary certificates and licenses.
• Compare potential suppliers and choose the right one.
• Save time.

Wide Factory Audit:

The factory wide audit follows the same methodology as the simple factory audit. The difference between them lies in their scope. The wide, usually takes two to three days for its completion. The scope and depth of this audit will depend on the client’s project profile and the quality assurance program designed for the customer service.

Credit Audit:

Credit Reporting is a tool used to evaluate the supplier’s situation by presenting information regarding the company’s shareholding composition, financial, economic and fiscal situation and its legal disputes with market agents (suppliers, customers, banks, government among others).

Factory Audit – Social commitment assessment:

This evaluation will serve to maintain a good reputation in the trade. Our professionals will conduct audits and evaluate the performance and ability of a manufacturer to maintain the requirements with respect to social conditions of work and safety. The format of the audit may be the BSCI or the one determined by your company.

Factory Audit – Special:

This type of audit of the plant will involve ISO 9000, ISO 14001, SA 8000, C-TPAT, ISO TS 16949 among others.

We understand that each quality assurance project will require a set of specific actions for its service. This will generate different costs for the viability of different projects. We develop these services at a competitive cost, but suitable for their realization, to meet any type of demand in China and other countries in Asia. The demand for your project will define the time, resources and cost of this work.