Factory audit

As part of the Kmart Ethical Sourcing Program (Kmart ESC Program), the types of Kmart factory audits (Kmart ESC Audits) are divided into three categories: the initial audit, the follow-up audit, and the update audit. 

The initial audit is arranged for those factories that are registering with Kmart for the first time, and it is conducted in accordance with Kmart's risk assessment method to determine whether the factory needs to undergo an audit. When violations are identified during the most recent audit, Kmart requires verification to determine whether the unresolved violations have been resolved. In such cases, the factory is required to undergo a follow-up audit. Finally, the updated audit is conducted two years after the factory passes the previous audit to verify that it remains in a good condition. 

The factors influencing the types of Kmart's factory inspection audits 

Did the factory ever register in the Kmart system? 

2. Has the factory undergone the inspection by Kmart? 

3. If the factory has previously undergone Kmart's factory inspection, what was the outcome of the previous inspection? 

The three different stages of Kmart's factory inspection are divided into three different types of audits. 

Initial review 

After a new supplier/factory is registered in the Kmart system, Kmart does not have a direct and in-depth understanding of its social responsibility performance. Therefore, the initial audit is a way for Kmart to learn about the performance of the new supplier/factory in the area of social responsibility. At the same time, through the initial audit, Kmart gets a general understanding of the gap between the supplier/factory and Kmart's ethical procurement standards (Kmart ESC). For the supplier/factory, the initial audit is also a good opportunity to showcase its image in the area of social responsibility to Kmart. 

Follow-up review 

When the supplier/factory has undergone the Kmart inspection, but the results of the previous audit were not understood, or did not reach the level that would reassure Kmart, therefore, the follow-up audit serves as a means to supervise the continuous improvement of the supplier/factory. 

Update Review 

When a supplier/factory has already undergone the Kmart inspection and the previous audit result poses little risk to Kmart in terms of brand reputation, Kmart will conduct the audit of the supplier/factory after a considerable period of time, that is, to update the audit. Because both the standards and the performance of the supplier/factory are dynamic, timely updating of the audit can systematically and periodically understand the social responsibility performance of the supplier/factory. At the same time, new standards can be conveyed to the supplier/factory in the form of an audit. Moreover, different types of Kmart inspection audits will also have some differences in inspection fees, and may have certain influences on the results of the Kmart inspection audit.