Factory Audits & Quality Inspections During & Post COVID-19： On-site Supplier Audits + Remote Participations by International Buyers (XII) (Continued from the last issue)
▌Importance of on-site audits or inspections with remote participations by international buyers
COVID-19 has brought about various challenges to the world, with fundamental impact on every aspect of supply chain management. The new demand for cross boarder supply chain management in the face of the pandemic has facilitated the gradual transition of supply chain management from a “traditional” to a “smart” approach, thanks to the availability and adaptions of many different new technologies and their applications. Factory audit and product inspection are just two key elements of the entire course of supply chain management, but the special need by international buyers for the audits and inspections during the pandemic has introduced in a new business model with on-site audits and inspections to be accompanied by remote participations which are effectively implemented. The upgraded model has enabled continued normal business activities when people are stopped from or limited by international travelling, while still ensuring the effective supplier management and quality control of the cross-border procurement with a flexible, efficient, reliable and economic smart tool. Shentou's practices and experience in assisting international buyers with remote audits and inspections over the past two and half years have demonstrated that the process of remote inspection and audits are reliable, efficient and effective. In particular:
A.Before the pandemic is completely over, when COVID-19 in some areas have been effectively controlled, factories within the area have returned to normal production and business, international buyers could continue the development, management and optimization of their cross-border supply chains, ensuring the continued and stable growth of their overall business.
B.For international buyers with most suppliers in China, before the country is completely back to normal after COVID-19, there are risks and extra financial costs, including the still-strictly enforced mandatory quarantine policies, for international buyers to physically visit their Chinese suppliers and undertake the traditional factory audits & inspections. With the model of remote participation and monitoring accompanied by on-site inspections or audits, these risks and extra costs could be completely avoided.
C. Even after the COVID-19 related travel restrictions and quarantine requirements are lifted, international buyers could significantly reduce the travel to China by choosing to visit factories when the factories are newly developed or during the follow-up annual supply evaluations. Although the frequency and intensity of international travelling are substantially reduced, cross-border procurement operations could be carried out smoothly. D. With the inspection or audit plans pre-determined based on QMS requirements as well as the process and product characteristics, including the clearly-defined remote participation schedule by international buyers and the sites, scope, requirements and procedures of the audits or inspections, international buyers could simultaneously participate and remotely monitor the on-site QMS audits, process audits, product audits and pre-shipment inspections, therefore still keeping a very close watch on the suppliers’ capability of production process and quality controls.
The success of the model of on-site inspections and/or audits by local service providers on-site with remote participation by international buyers largely depend on the service providers' integrated professional knowledge of and experience with the technology, production and quality control of the products as well as the professional practices of inspections and audits. The proactive interest and participation of the international buyers are of course the critical driving force. We believe with the services most appropriate to international customer requirements delivered by qualified service providers on the ground, on-site factory audits and product inspections with remote participation by international buyers would become a natural trend for a smart cross-border supply chain management, regardless of where the customers and the suppliers are located and whether it is during or after COVID-19.
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