Factory audit

The audit characteristics of ZARA factory inspection

The biggest feature of ZARA factory inspection is pre-approval, which requires passing the pre-approval before arranging the formal audit. If the factory is cooperating with ZARA for factory inspection for the first time, the new factory will be audited twice, by different audit agencies for ZARA pre audit and formal audit. If ZARA pre audit fails, the factory will be directly eliminated without further formal audit. If the factory pre audit passes, it will enter ZARA formal audit. The formal audit of ZARA factory inspection has a window period. If the formal audit fails, ZARA's orders will still not be received. Therefore, both secondary audits are very important, and every effort must be made to pass the factory inspection in order to receive customer orders.

ZARA factory audit types, institutions, and level classification

The factory inspection is a surprise audit with a duration of two weeks. Common notary firms include UL, SGS, and ITS. Mainly focusing on social responsibility factory inspection, mainly reviewing the wages, working hours, health and safety, fire safety, and other aspects of factory employees. Inditex generally only reviews human rights applications, which are initiated by customers. In special cases such as wet processing (dyeing, washing, tanning, etc.), green wearable products need to undergo GTW environmental assessment. This guideline applies to the wet processing plants (dyeing plants, printing plants, synthetic leather plants, washing plants, and leather plants) included in Inditex Group and its supply chain

The factory inspection results will have four levels: A level, B level, C level, and D.

A-level, will undergo re audit within 24 months. If customer A has doubts about various information during the first review, they will immediately review it again to see if it is cheating.

B-level, re audit will be conducted within 18 months.

C-level, re audit will be conducted within 12 months.

D-level, unqualified factories will be given opportunities for improvement. It will be reviewed again in 6 months.

If it is not qualified, the factory will not be used. However, even with improvements already made, factories that still require a D-level rating will be given another chance to improve by the customer. If it doesn't pass, it will be blacklisted.

How long will Zara receive the factory inspection report?

Generally speaking, after the factory inspection, the factory will receive a formal audit report from the auditing agency within 7 to 14 working days. In fact, on that day, the auditing agency will issue a paper version of the on-site report to the factory, and ask the relevant person in charge of the factory to sign and confirm the report. The content of this paper version of the audit report is the same as that of the electronic version of the formal report later.

ZARA audit checklist:

1. Legitimacy of the company: Customers verify the legality and safety of the company by reviewing documents such as the business license, tax registration certificate, and fire safety map.

2. Child labor and underage workers: The customer absolutely prohibits the company from employing child labor under the age of 16. It is acceptable to hire underage workers between the ages of 16 and 18, but approval from government departments and practical actions must be taken to ensure the physical and mental health of underage workers.

3. Discrimination: Customers do not allow the company to have any discrimination based on gender, race, age, faith, or other factors when hiring and promoting employees. Factory inspectors generally review the personnel files of all current employees, as well as their records of resignations in the past six months and labor contracts.

4. Working hours: The company must ensure workers' rest time in accordance with local laws and regulations, with at least one day of rest per week and no more than 60 hours of work per week.

5. Labor remuneration: Employees who work overtime on regular days and statutory holidays must be paid according to the local legal rate, and their monthly salary cannot be lower than the local minimum wage standard. Customers usually check the attendance and salary payment records of employees in the past 3 or 12 months.

6. Disciplinary measures: Customers do not accept any fines, beatings, or other measures imposed by the company on employees, nor do they accept any behavior of forced labor by the company.

7. Health and Safety: The company must provide a healthy and safe workplace with necessary environmental protection measures and relevant permits.

Application process:

1. Initiate application: Factory inspections are usually initiated by customers, or intermediaries apply to customers for factory inspections when applying for new factories to join.

2. Submit application:

Submit written audit requirements to customers through intermediaries or factories.

3. Confirmation review:

The client agrees to this audit and designates the relevant auditing agency.

4. Payment of audit fees: The factory pays relevant fees (such as audit fees, travel expenses) to the audit agency

5. Audit Schedule: After receiving the audit fee, the audit company will send an audit questionnaire and confirmation letter to the factory, which will be filled out and returned. Based on the audit questionnaire provided by the factory, the auditing company will develop an audit plan and make an internal audit task plan, including the arrangement of auditors and audit dates.

6. Implementation review:

On the designated audit date or audit notification period, auditors from the auditing company will conduct this audit at the audited factory.

The benefits of passing ZARA factory inspection:

(1) Establishing a management system that meets international requirements can gain international recognition and increase the ability to compete head-on with well-known brands

(2) Encourage consumers to establish positive emotions towards the product;

(3) Establish stable cooperation with buyers and expand into new markets, laying a solid foundation for long-term development;

(4) Enhance management systems, improve relationships with employees, thereby increasing productivity and profits;

(5) Minimize potential business risks such as work-related injuries or even fatalities, legal disputes, or loss of orders;

(6) Developing new markets and customers: Socially responsible companies will stand out from competitors;