Supplier Quality Control & Management In The Era Of Coronavirus Pandemic The novel coronavirus outbreak in early 2020 has brought devastating impact to China and the world. Starting from the second half of January in Wuhan China, COVID-19 has grown, spread, exploded and finally been contained within China. With the joint efforts by the government, the healthcare professionals and whole Chinese people, the outbreak is now effectively under control.
While the situation in China is gradually getting back to normal with companies reopened and workers back to their previous posts, the virus has started to quickly spread globally and exploding in several hot spots. As of this writing, Italy, the US, Spain, Germany, France, and Iran have all reported large amount of confirmed cases and deaths and governments in many areas have taken rather strict actions such as work cancellation, school closing, city lockdown, home quarantine, and work from home, in efforts to contain the spread. At the same time, China is also taking strict measures to stop the “second-wave” of the virus from imported cases.
With this new “normal”, for the international buyers of automobile spare parts who have been relying on Chinese suppliers, how to control the quality of the products being produced in China, how to manage new suppliers under development, how to inspect or audit the suppliers, and how to inspect the goods before shipments, etc., there are tough questions almost everyone is facing.
Based on Shentou’s two-decade-long experience assisting international buyers with the quality control and management of their Chinese suppliers, and in order to address the need for on-site work at different stages of the virus outbreak in China and internationally, we suggest that two models be adopted during this special period of time. With suppliers that can arrange on-site audits or quality inspections, qualified local service providers could be tasked to conduct normal audits or inspections on-site for international buyers. For those whom are not yet ready for on-site work, try to conduct remote audits or inspections now, with follow-up on-site work when the local conditions allow.
For on-site audits or inspections, bear in mind that the movements of people between different localities in some parts of China are currently still affected by the need for medical quarantine. Therefore it is critical that the service organizations international buyers work with are reasonably located in China to have the main regions strategically covered.
In China, many provinces have started to implement a “Health Code” system where people are assigned a green code for low-risk of virus exposure, a yellow code for medium risk and a red code for high risk, usually based on one’s travel records. Holders of Green codes could then travel freely within a province without going through quarantine. In the Yangzi River Delta Region which includes Zhejiang and Jiangsu Provinces, the governments have adopted cross-recognitions of the Health Codes issued by each other’s province, so that Green Code holders could move freely within the region without quarantine. A nationwide system of Health Code cross-recognition is also being implemented.
Quality control and management service organizations such as Shentou usually have local offices in supplier-rich areas such as the Yangtze River Delta Region and areas of Shandong, Hebei, Northern China and Guangdong for local on-site tasks including SQE, QA, QC and complaints handling. Therefore staff in different offices could easily work on-site at the factories within their areas, without being hampered by the need of quarantine.
For remote operations including supplier audits and quality inspections, remote communication technologies, and tools such as QQ, WeChat or Video Conferencing could be used to undertake on-line audits of document checking, questioning or observations, so that the audit evidence could be collected and complied to assess the compliance and effectiveness of the factories’ quality management systems. Remote communication technologies and tools could also be used to remotely inspect the compliance of the finished goods with the help of the supplier staff on-site.
Typically, remote audits and inspections are appropriate for factories that have been supplying consistently for a long time with good records and products that have been ordered repeatedly without quality issues. When audits and inspections are conducted remotely, it is still necessary to undertake one to two days’ on-site verifications and validations based on the audit evidence when the local conditions allow. |