Global sourcing has become an integral part of retail businesses in all geographies. While this helps achieve strategic operational benefits and optimizes costs, the model is also fraught with overwhelming challenges and risks.
One of the basic concerns for global brands and retailers is to ensure that their products manufactured in supplier factories, often distributed in developing countries, meet the required quality and safety standards.
Apart from this, they are also quite responsible for guaranteeing clean and safe working conditions in supplier factories, human resource management practices of suppliers, and sustainable social compliance processes & environmental management in the supply chain.
Therefore, the need to plan and execute coherent and optimized factory audits that will help retailers to continuously monitor and evaluate suppliers and improve their corporate social responsibility, responsible sourcing and sustainability programs are highlighted.
However, retailers must ensure that they adopt an integrated approach to managing multiple audit requirements in order to avoid duplication of effort and audit fatigue. This approach will also help achieve a unified vision of the supplier’s performance.
Factory audit management solution
The factory audit management solution presents comprehensive capabilities to perform risk assessments, as well as to administer a factory audit program driven by the workflow. Retailers can plan and determine the scope of audits, and collaborate effectively with the suppliers of third-party auditing providers, suppliers, and factories.
The solution offers capabilities to manage the external and internal resources required, capture the costs of the audit program and collect, store and access efficiently and securely and easily. Graphical charts and reporting tools help companies gain full visibility into the audit process and also keep a clear record of all audit activities.
A good auditing solution has built-in lists and best practices to help capture and evaluate multiple control areas including fire safety standards, production process structure, production lines, machine conditions, safety of product, quality assurance processes, and testing, procurement practices, social compliance factors, safety, environment, chemical products management, and occupational health & safety. Properly implemented, factory audits can serve as a solid means to build a long-term collaborative partnership with the suppliers.
Various supplier risks can be identified, measured and prioritized using powerful risk management tools that include risk maps, risk calculations, and scorecards. State-of-the-art data analysis tools facilitate the process of converting data volumes into actionable intelligence.
In addition, retailers can easily manage large factory problems with the support of incident management and correction tools. The solution provides a closed cycle process to implement corrective actions and soundtracking.
Reporting and monitoring tools have been included to help retailers develop comprehensive summary reports on factory audits and their findings and recommendations. The wireless and offline audit case facilitates the capture of audit data in remote locations without access to the internet or the central network.
Some Basic Benefits of Factory Auditing Management Solutions for Retail Industry Are It:
- Allows retailers to proactively detect quality, security, security and social compliance risks
- Provides a unified view of all progress of tasks, audit projects, risks, findings and corrective actions throughout the supply chain.
- Helps track external and internal resources required, audit costs and budgets in real-time
- Helps to adapt checklists, consistent methodologies, and evaluation standards, and avoids duplication of effort and audit fatigue
- Allows retailers to create a well-oiled communication channel in the extended supplier network, strengthens factory performance and improves supplier ownership
- Enables the proactive participation of all users in key audit activities through interactive web-based tools
- Helps to integrate the results of the factory auditing with the corrective and preventive action plans required for the closed cycle
- Help gather meaningful intelligence from audit volumes and risk information
Factory auditing solutions are crucial for the retail industry as it helps them to weed out inefficiencies and make the system more effective. If your a retail industry and looking for a factory auditing service provider, you should choose ProQC. It is one of the leading organizations providing third party inspection services for the retail industry at affordable prices. We are backed by a team of skilled and dedicated professionals that provides quality assured auditing services as per the specific demand of your business. Choose us today and get a host of benefits.