One risk associated with buying products from a new supplier or manufacturer from China is whether or not that company has the dependability, quality, and manufacturing capacity required to produce goods that meet your needs. To mitigate risks, buyers often use a factory audit, supplier audit or quality inspection.
But many first-time buyers need help distinguishing between a quality control inspection and an audit. To guide you on the way, we compared these two services.
What Are the Common types of Auditing in Quality Control?
Typically, factory audits are performed by an accredited third-party auditor with the expertise to carry out the audit. In general, there are two types of third-party audits: factory audits and supplier audits.
A supplier audit determines whether the Chinese supplier is legitimate, has adequate business licenses and experience, and collects the intended factory’s base information. In contrast, a factory audit focuses more on evaluating the factory’s production capabilities, quality management system, and more.
It’s important to understand that the procedures and supplier audit checklist for each audit can vary depending on the requirements established by the client. But let’s take a closer look at what each one typically entails.
How Do You Audit a Supplier in China?
The supplier audit is generally shorter and doesn’t necessarily require an on-site visit. Typically, an auditor will check the company’s legality by, for example:
- Checking the company’s business license.
- Review the bank statement to check whether the company is operating normally.
- Inspecting the quality control systems and basic information of the intended factory.
- Confirming whether the organisation has an export license.
- Check whether the company obtained a bank opening license.
How Do You Audit a Factory in China?
The factory audits revolve around collecting base information about the factory, evaluating whether the factory can produce the intended product and assessing their quality management systems by visiting the factory on-site.
The first step in the manufacturing process is to collect general information about the factory, including details like ownership, workforce, technical ability, production capacity, and production process.
The auditor would then check the existing infrastructure and assess whether the production environment is suitable for production, including checking the machinery/equipment used in production and whether the production processes were monitored and controlled adequately. Other vital elements include assessing the factory’s internal procedures for purchasing and recording materials from suppliers, handling and labelling goods, training systems, quality control systems and documentation, and more.
Check out and download our factory audit report to learn more about factory audits.
What Is a Quality Inspection?
Quality inspection is the method of assessing and confirming that the materials and goods under inspection adhere to given specifications. Inspectors adhere to a predetermined inspection checklist based on the needs of the customer or the goods or applicable standards.
It is important to note the procedures in an inspection may vary depending on the client’s requirements and what stage of the production it is conducted. As such, in quality control, there are four types of quality inspections: pre-production, production, pre-shipment, and vessel loading/unloading assessments.
How Is the Quality Inspection Process in China?
The inspections are accomplished via various techniques. One of the first steps by the inspector is to open several cartons and count the number of pieces to ensure it is the same number as in the specifications.
Another standard criteria is to include on-site observation of the workmanship, including:
- Searching for any physical defects that may negatively influence the product or fail to conform to the client´s expectations.
- Test functionality, safety and dimensions.
- Check whether the product with the agreed specifications and international standards.
Get access to our free quality control inspection report to find out what a general pre-shipment inspection entails.
The Differences Between Quality Inspections and Audit Services
The best option for you depends entirely on your specific situation and needs – and there is no right or wrong. That said, a factory inspection typically occurs before a buyer confirms their order or pays the supplier the deposit. Many buyers prefer to order an audit service in China when they are:
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Concerned whether the business is legitimate before paying a deposit.
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Want to verify the intended factory, its capabilities and quality management systems.
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Improve visibility in their supply chain/conform to internal procedures.
Meanwhile, many buyers intend to order quality control inspections to ensure that the produced goods meet the quality standards and specifications of the buyer before they are shipped. As such, auditing services can be valuable when you have doubts about the legitimacy of the supplier and its capabilities, and inspection services can be an effective method when you want to reduce your risks of receiving substandard goods/or commodities that don’t meet your requirements.
Conclusion: Audits or Quality Inspections in China: What Is the Best Option?
There are several risks associated with buying products from new Chinese suppliers, and one method to reduce the risks is by using quality inspections or factory audits by an accredited third-party quality control company. Typically, audits are used when a buyer want to reduce his/her risks before the goods are produced. Meanwhile quality inspection is intended to reduce the risks of receiving defective products before shipment.
Each of these services has its strengths and weaknesses. While auditing services may provide you with trust in the Chinese manufacturer’s capability, it is still not guaranteed that the manufacturer or supplier will produce your goods up to your standards and requirements as the service is performed before production. Likewise, an inspection will not let you know whether the factory has a rigid document quality management system, as it focuses on the goods themselves.
Do you need help finding the right solution for your needs? We are one of the leading quality control companies in the world and offer a range of quality control services in China. We have internationally-recognised testing laboratories in key manufacturing regions and are accredited by multiple international regulatory bodies and standards, including ISO17020:2012 for inspections and ISO17025:2005 for testing by the China National Accreditation Service for Conformity Assessment (CNAS). Schedule your free consultation today!
