After the goals have been set and the list of potential suppliers formed, we conduct a visit to the enterprise. Supplier audit is an essential stage of establishing a secure supply chain in China. Preliminary enterprise audit allows to obtain an overview of the facility. Prior to the fabrication of the press forms and samples we conduct a preliminary analysis of the company:
- We evaluate the size of the enterprise, the equipment used and the production capacity.
- We assess the number of personnel at the enterprise and the quality control department.
- We appraise the presence of testing equipment for your product category. We evaluate the facility’s internal quality control requirements.
- We conduct an evaluation of the company's registration documents and production licenses. We assess the export geography and the volume of the enterprise’s deliveries, as well the list of its primary overseas clients.
- We evaluate the quality of the raw materials used in production.
- We appraise the surrounding infrastructure – the road quality, the distance to the nearest seaport, and accessibility for cargo vehicles.
- We assess the enterprise’s compliance with local environmental standards.
Extensive practical experience with Chinese suppliers allows us to quickly and properly evaluate risks and make a conclusion on a Chinese supplier’s reliability. Our statistical data points to problems with at least 40% of Chinese manufacturers. Enterprise audit allows to filter out unreliable suppliers prior to the start of your cooperation with them.