Want to ensure the capability and reliability of suppliers before bringing them into the supply chain? Well, the role of KRT Factory Audits is to ensure the compliance and safety of suppliers.
KRT Factory audits (aka KRT factory inspections) are one of the best ways to gain a comprehensive understanding of a supplier’s sourcing and operating policies and ensure they align with your company’s brand image.
The type of audit that is best for your company depends on the type of product or service you offer. In this article, we describe the role of KRT Factory Audits. Let’s have a look at the article below.
The KRT Audit company is a reliable third-party inspection agency in Asia. It’s a privately held company in the United States owned as well as operated by reliable 3rd-gen North Americans with inspection personnel and offices situated in Asia’s 14 highest export-active nations.
KRT Audit Corporation delivers highly comprehensive supplier or factory audits, exceptionally detailed shipment/product inspections, along with internationally accredited lab testing assistance in India, China, Cambodia, Indonesia, Vietnam, Malaysia, Korea, Taiwan, Myanmar, Japan, The Philippines, Thailand, Bangladesh, and Pakistan.
KRT has around 350 expert inspectors, professional auditors, and trustworthy office support personnel working for shipment/product inspections, supplier or factory audits, as well as lab tests. KRT Factory Audits now helps importers from different countries (80 Countries) globally!
Many manufacturers have questions: Why choose KRT factory audits? Isn’t it all right if there is no review, as long as the shipment transaction is made? Isn’t it troublesome to do this?
KRT factory Audit offers a standard audit which is the implementation of corporate social responsibility, mainly labor standards, by the social responsibility standards formulated by multinational companies, which is commonly referred to as the corporate code of conduct, before multinational companies purchase products or place production orders.
Generally speaking, large and medium-sized multinational companies have their corporate codes of conduct, such as Walmart, Nike, Disney, Carrefour, PAYLESSS HOESOURCE, BROWNSHOE, VIEWPOINT, Macy’s, and other European and American clothing, shoemaking, daily necessities, retailing, and other group companies.
They have a special audit department responsible for the cooperative factory, this method is called the second-party audit. It is a third-party certification to hire a professional and qualified third-party audit agency to replace the customer to go to the factory for an audit.
The contents of both certifications are based on international labor standards, requiring suppliers to undertake specified obligations in terms of labor standards and workers’ living conditions.
In comparison, the second-party certification appeared earlier, with larger coverage and influence, while the standards and examination of the third-party certification are more comprehensive.
With this kind of factory inspection standard, it is beneficial to both the customer and the factory. It is not only a guarantee for the product, but also a guarantee for the brand! For specific audit content, please refer to the KRT factory inspection audit list.
Here are the types of factory and supplier audits offered by KRT Factory Audits. Let’s have a look here:
CFA confirms ownership of the factory, legal status, management personnel, bank accounts, production capabilities, factory size, machinery, packing, materials, quality control, certifications, test equipment, and also social compliance factors.
Complete Factory Audit by KRT offers the lowest rate anywhere! You can use this audit in case you wish to have a truly in-depth, comprehensive review of a current or prospective manufacturer.
BFA is like CFA, however, they don’t consist of the assessment of the packing and materials departments, nor do they consist of CFA services like the social compliance component
It is a great option for a lower cost! You can use this supplier audit in case your budget doesn’t permit the Complete Factory Audit (CFA).
CRA confirms the size of the company, ownership of the company, as well as legal status, management, and bank accounts, mainly for non-manufacturing commodities like brokers, agents, trading companies, distributors, and also other middlemen.
You can use this assistance before transacting trade with a broker, agent, trading company, or distributor to lower the risk of payment.
BLC confirms the official company name of your supplier along with the supplier company’s legal status, company address, license registration number, lawfully responsible party, as well as the validity of your supplier’s license for the business.
You can use this in case your main consideration is that the supplier is a lawfully licensed company in a good position.
ATA generally uses guidelines of C-TPAT to make sure that the supplier is completely compliant with your business. C-TPAT is generally an unforced supply chain protection program led by the United States Border And Customs Protection as well as Focused on supply chain security.
You can use this for C-TPAT observation. Compliance may let you avoid the United States Customs screening uncertainties.
It uses globally acknowledged standards to ensure safe working prerequisites, working wages and hours, vacation and rest time, prison/forced labor, underage labor, discrimination, disciplinary practices, etc.
Factory audits allow independent third-party auditors to objectively assess core objectives such as safety, security, socially responsible operations, government regulatory compliance, adherence to corporate standards, and avoiding costly supply chain disruptions.
Can you afford to ignore supply chain audits?
KRT Factory Audits generally take your business’s interests and image seriously. Therefore, our Supplier Audit Program (SAP) helps you gain a comprehensive understanding of your supplier’s business and policies.
KRT dispatches independent auditors to your suppliers’ manufacturing facilities. Their auditors then conduct an on-site analysis of the company’s production capabilities, quality management system, structural safety, social compliance, and/or environmental impact.
You will receive all the information you need to take corrective action, if necessary.
KRT Factory audits aid in ensuring that the supply chain conforms with your standards as well as national, international, and, ultimately, brand requirements for your business.