Factory audit

Nordstrom (1) is a high-end chain department store in the United States. The products sold by Nordstrom include clothing, accessories, bags, jewelry, cosmetics, perfumes, household items, etc. Nordstrom started as a shoe store in Seattle and has now grown into a fashionable department store throughout the United States, with rapid development momentum, increasing store numbers, and continuous introduction of new services. Nordstrom is renowned for its excellent customer service, generous shopping space design, and the ability to purchase the best quality clothing for all family members in one place. The spacious corridors, black display walls, tasteful shelves, chairs for customers, and the iconic live piano performance all make Nordstrom unique.

NORDSTROM Factory Inspection Anti-Terrorism Requirements

1. For Nordstrom factory inspections, does the background investigation of employees include the following aspects: criminal background, economic and financial background / credit report, educational background, driving record, residence permit or ID card, drug use and alcohol abuse.

2. Is the background of current employees regularly investigated? If so, how often? 

Are there any physical fences around the factory to prevent unauthorized personnel from entering? 

Is there a fence or barrier in the container loading and unloading area? 

5. Is there an independent packaging area? 

6. Are there lighting fixtures in the import/export areas, cargo loading/unloading storage areas, and parking areas? 

7. Are there any registration records for all the vehicles and personnel entering or leaving the factory? 

Does the factory take the following safety measures in the appropriate locations, such as alarm systems, motion detectors, closed-circuit cameras, on-site security personnel, and regular safety inspections? 

Does the factory have a written safety policy? 

Does the factory have an employee identification system? 

11. Are employees restricted to entering and exiting only their own work areas? 

Do employees from other departments entering or exiting the packaging area and the loading area need to register? 

13. Are the personnel working in the packaging area and the loading/unloading area designated and registered in advance? 

14. Are all the safety training and measures of the factory recorded in written documents? 

15. For visitors, does the factory have a control system? Do they need to present identification? Do they need to register? Are there any escorts in the factory? Do they need to wear visitor badges to enter the factory? 

16. Are there any specific personnel designated to ensure the safety of the goods? 

17. Are there any written documents regarding the safety procedures for the goods? 

18. Is this container installed by the factory itself? If so, did they check if the container was empty before loading? 19. If it is a FOB consolidated container shipment, is there a designated shipping company? 

20. Were the goods directly transported from the factory to the freight forwarder? 

21. If there are any illegal or suspicious activities, does the factory have a written procedure to notify the law enforcement department? If so, are these written documents posted in the factory so that employees can understand them? 

NORDSTROM Factory Inspection Evaluation Memorandum 

The assessment memorandum of NORDSTROM's factory inspection is actually a guideline provided by the social responsibility department of NORDSTROM to third-party inspectors. This memorandum mainly offers an accurate basis for the inspectors when they need to make a correct classification of the problems found during the actual inspection and assessment of the factory. 

This memorandum mainly covers the following items: 

1 Regarding the determination of violations, during the actual inspection process at the factory, it was clearly stated which behaviors violated the business conduct standards of NORDSTROM's factory inspection. All such details are provided here. 

2. Necessary corrective actions: Since the factory has committed violations, there must be a corrective and remedial plan. What should be done in future work to better align with the business conduct standards of the customers? For each violation, the suggested measures are provided here. 

3. The time for completing corrective actions: When the first inspection revealed that the factory might have numerous problems in various aspects, and then a relevant corrective plan was provided, it was definitely required that the factory complete this improvement plan within a specified time limit. Of course, it was impossible to allow the factory to indefinitely delay the problem. Therefore, the factory must complete the improvement plan within this specified time limit. 

4 Finally, check who will carry out the inspection, either by NORDSTROM itself or by a third-party notary firm commissioned by NORDSTROM, or by the customer's own social responsibility inspection department. 

5 Risk Levels, there are mainly four risk levels: SATISFACTORY - This level indicates that the factory inspection results are basically in line with the customer's code of conduct, and after reaching this level, the factory still needs to undergo an annual inspection. NEEDS IMPROVEMENT - This level means that the factory has some problems, but they are not particularly serious issues. The factory must correct them within a specified time frame. NEEDS MAJOR IMPROVEMENT - This level indicates that the problems existing in the factory are too far from the customer's code of conduct and basically do not meet the requirements. This requires the factory to pay special attention and take measures to be noticed, and the improvement tasks must be completed within a specified time. SHOWSTOPPER* - This level means that the inspection results of this level must be sent to NORDSTROM's social responsibility department within 24 hours after the inspection. The problems that arise are extremely serious and have almost reached a point where the customers cannot tolerate them. For example, there are false records in the employee files. When reaching this level, the factory needs to take immediate remedial actions and will be re-inspected 30 days later. From the various contents of the above memo, it can be seen that this memo holds an important position in the assessment work of the inspectors. Therefore, the factory does not need to worry that the inspectors will assess the factory according to their personal preferences, resulting in unfair level definitions. Thus, we can see that this memo is a very good basis for definition and action guideline for both third-party assessors and the factory. 

NORDSTROM (Nordstrom Company) Factory Inspection Authorization Letter 1 The content of the letter of authorization informs the factory of the purpose of the Nordstrom Company's inspection. In terms of social responsibility and business conduct, Nordstrom and its business partners have been committed to this work. They hope that all factories will identify existing problems through the social responsibility inspection, propose improvement plans, and continuously improve their social responsibility system to ensure that their business operations are in better alignment with relevant legal systems and business conduct standards. The letter informs the factory who will conduct the inspection, the inspection time, and the inspection content. Since November 2003, all factories producing for Nordstrom have been subject to a once-a-year factory comprehensive inspection. This inspection is conducted by a third-party notary firm commissioned by Nordstrom. It is carried out every 12 months, and the specific time depends on the inspection results. The inspection mainly includes three major parts: inspecting the factory, reviewing previous relevant records, and interviews with managers and employees. 

Inform the factory of the inspection procedures:

A. Have a third-party notary agency conduct the inspection at the factory.

B. Leave a copy of the inspection results to the factory, and also send the results to the NORDSTROM social responsibility department.

C. After NORDSTROM carefully reviews the inspection results, they will prepare a corrective plan.

D. NORDSTROM will send the corrective plan to the factory and reemphasize the remedial measures.

E. The factory must complete the items that need improvement within the specified time in the corrective plan.

F. Conduct another inspection to verify whether the related issues have been resolved. 

2 Why is it said that the factory has the right to request the assessors to present the authorization entry letter? Firstly, this demonstrates the full respect of NORDSTROM towards the factory. Both parties are conducting the inspection work on an equal footing, without any coercive behavior. Secondly, when the assessors come to the factory for inspection, only by asking them to present the entry letter can their identity be verified and the content of the letter be understood. At this point, the factory will actively cooperate with the assessors' work and will understand how to act in order to better fulfill its social responsibilities. If the assessors do not have the authorization entry letter, of course, the factory has the right to refuse the inspection. 

NORDSTROM reviews the basic categories and knowledge 

(1) Basic Knowledge of NORDSTROM (Nordstom Company) Audit 

Starting from November 2003, all factories that produce for NORDSTROM (Nordstrom Company) are required to undergo a comprehensive factory inspection once a year. This inspection is conducted by a third-party auditing firm commissioned by NORDSTROM (Nordstrom Company), and it is carried out every 12 months. The specific timing depends on the inspection results. The inspection mainly consists of three parts: factory tour, review of previous relevant records, and interviews with managers and employees. 

Check the operation procedure: 

1. Inspection by a third-party notary at the factory

2. The inspection results are given to the factory and also sent to the social responsibility department of NORDSTROM 

After carefully reviewing the inspection results, Nordstrom will prepare a corrective plan. 

4 Nordstrom will send the corrective plan to the factory, and once again emphasize the remedial measures. 

The factory must complete the projects that need improvement within the specified time period as stipulated in the corrective action plan. 

6. Conduct another check to verify whether the relevant issues have been resolved 

(2) The four risk levels of NORDSTROM (Nordstom Company) 

1 SATISFACTORY - Satisfactory level. The factory inspection results at this level are generally in line with the customer's code of conduct. Once this level is achieved, the factory will also be subject to an annual inspection. 

2 NEEDS IMPROVEMENT - This level indicates that there are some issues within the factory, but they are not particularly severe problems. The factory must rectify these issues within the specified time frame. 

3 Needs Major Improvement - This level requires significant improvement. The problems present at this level are far from aligning with the customer's code of conduct. It basically fails to meet the requirements and requires the factory to give it special attention and take corrective actions. It must be completed and rectified within the specified time frame. 

4 SHOWSTOPPER* Zero Tolerance Level. NORDSTROM requires that the inspection results of this level must be sent to NORDSTROM's social responsibility department within 24 hours after the inspection is completed. The problems that have emerged are extremely serious, almost to the point where customers cannot tolerate them. For example, there are false records in the employee files. Factories at this level need to take immediate remedial actions and will be re-inspected 30 days later. 

(3) NORDSTROM demands immediate attention to the definition of violations by (DIA) 

1. Wages and working hours. A large number of employees need to sleep in the workshop or factory where they work in order to complete their tasks. The production records regarding employees' wages compensation do not match the wage records. 

2. Child laborers. False information is present in the employee files. Workers' ages are below the national legal limit. They have not complied with the national and client-provided laws regarding child labor. 

3 Prisoners/Forced Laborers Forced overtime work. 8-hour shifts are imposed with assigned tasks every day. There are prison laborers in the factory. 

4. Concealing the fact that the outsourcing factory refused to cooperate