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FACTORY AUDITS

  

ZEMPIRE performs annual audits of our Tier 1 finished good factories through use of our own internal audit team as well as 3rd party auditors as needed. These audits verify the obligations set forth in the Manufacturer’s Code of Conduct. An audit is required of a new supplier prior to any production purchase orders being placed.

 

A typical audit inspection consists of several parts:

  • Kick-off meeting- with factory manager and human resource personnel
  • Factory tour – auditors visually inspect the factory including work areas, canteen, toilets, warehouses, dormitories, environmental protection facilities
  • Worker interviews – auditors randomly select workers to ask questions including those regarding working conditions, working hours, wages, benefits and grievance procedures
  • Document inspection – auditors review documents including payroll, personnel files, permits/certificates and policies
  • Closing meeting – auditors present corrective action plan (CAP) to factory management and develop solutions

All information gathered contributes to the final risk ranking that the factory is assigned. Each section of the audit is assigned points and an overall risk rating is determined – low, low-moderate, moderate, moderate-high, high. Factories with high and moderate-high risk must attend additional supplier compliance training and are not approved for production. Critical issues are elevated to senior management.

 

Each factory is also provided a corrective action plan and partners with our team to develop a timing and remediation action plan within two weeks of the initial audit. A follow-up audit is required and will be scheduled within one month. Depending on the risk rating, reaudit timing is targeted at 3-12 months after initial review.