The Different Types Of Factory Audits You Need To Know About
Choosing to have your factories in China regularly go under factory auditing is a great way of ensuring that the business continues to operate within specific guidelines. Learn about accounts payable certification. The audits themselves are a great way to better understand any possible changes to current law requirements that can really hinder your business if not heeded. However, there are many different kinds of factory audits out there that you should know about.
The Full Factory Audit
This form of audit is a must have especially if your company has just identified a new manufacturer to partner with. The audit will cover everything that concerns the company legally but it also gives you more information such as how financially sound the manufacturer is. This is a key point to bear in mind because the last thing you want to happen Is the manufacturer announcing its closure after your company has invested in them.
There are many reasons why companies are deciding to go under and the full factory audit will help you to discover if the company you want to work with has something to hide. On the bright side, those that pass the audit are given the green light to pursue their partnership with your company. Never ever underestimate all of the benefits that this form of audit can bring so make sure you have all of your new partners undergo it at least once.
The Basic Factory Audit
Basic factory audits are also known as BFAs and are suitable for companies to evaluate hot prospects and current partners. Naturally the BFAs investigation does not extend to as many areas as a complete factory audit would but it is still enough to give a picture on how well the partner is performing.
If your company has a strict budget limitation when it comes to audits, then you can certainly have this basic one done. It will be enough to uncover any secrets your prospects might be trying to cover up and it allows you to have a greater sense of the benefit that the partnership might bring. For your current partners, definitely have them undergo a basic audit every year or so to ensure they keep up with regulations and standards.
The Business License Check
Business checks are a form of audit that ensures the supplier or partner’s legal operating name as well as whether they have all of the necessary paperwork to operate a business. This is a simple check to ensure the suppliers are really who they say they are and is useful for when you want to make a quick background check. Naturally, this option is also the more affordable of the three mentioned here.