Factory audit

The supplier review by Huazhu Group or its commissioned third-party institution (such as Shenzhen Ruijie) is a systematic assessment carried out by the group or the third-party institution based on enterprise standards higher than national standards, for potential cooperating or cooperating suppliers. The review runs through the entire cycle of supplier cooperation, including basic screenings such as qualifications and production capacity in the admission stage, supervision of production processes during cooperation, and quality tracking after the products are put into use. The ultimate goal is to select "compliant, high-quality, and sustainable" suppliers, ensuring product quality consistency, reducing supply chain risks, and providing reliable material support for its hotels and franchisees. 

I. Analysis of Core Standards for Supplier Evaluation of HWorld (Precise Alignment, Directly Addressing Key Evaluation Points) HWorld, as the world's leading hotel group (including brands such as Homestay, Quini, Orange, and Huajiantang, totaling over 30 brands), its supplier evaluation focuses on three core aspects: "Compliance, Quality Stability, and Sustainability", covering all categories of suppliers (hotel supplies, building materials, food, cleaning services, IT equipment, etc.). The core evaluation dimensions are as follows: 

Basic compliance requirements (veto items) 

• Qualification documents: Business license, production license, product inspection reports (such as quality inspection reports, environmental protection inspection reports), trademark / patent authorization documents (if the product is a brand product); 

• Legal compliance: No major administrative penalties recorded, labor employment is in compliance (contract signing, social security payment, working hours compliance), tax compliance, environmental protection compliance (pollution discharge permit, hazardous waste disposal records). 

2. Product and Service Quality (Core Audit Item) 

• Product Standards: Must comply with the "Supplier Product Technical Specifications" of Huazhu Group (such as safety standards for hotel supplies, environmental protection grades for building materials, and QS/SC certifications for food products); 

• Quality Control: Possess a comprehensive quality management system (such as ISO9001 certification preferred), and the production/service process should be traceable (including raw material purchase records, production logs, and finished product inspection procedures); 

• Sample Testing: Before the audit, samples must pass the sample testing by the designated third-party institution of Huazhu Group or the random inspection of Huazhu Group's laboratory (if不合格， they will be directly eliminated). 

3. Supply Chain Management Capability 

• Capacity Assurance: Possess the capacity to meet the supply demands of all the hotels of Huazhu Group across the country (please provide the list of production equipment, capacity reports, and inventory management system); 

• Delivery Timeframe: We have a stable logistics cooperation system that can meet the urgent replenishment needs of hotel stores (please provide the logistics cooperation agreement and the commitment on delivery timeframe). 

• After-sales response: Establish a 24-hour after-sales connection mechanism to promptly handle product quality complaints (please provide after-sales process documents and complaint handling records). 

4. Social Responsibility and Sustainable Development (Bonus item, affects the level of cooperation) 

• Labor employment: Prohibition of child labor and forced labor. Compliance with overtime regulations (employee roster, pay slips, attendance records must be provided); 

• Environmental Responsibility: Reduce packaging waste and achieve energy conservation and consumption reduction (such as through ISO14001 certification and providing environmental protection measures documentation); 

• Social Responsibility: Participation in charity projects, support for local employment, etc. (Can be used as an additional factor for evaluation.) 

Authentication process 

The review process is carried out in stages, and there are clear constraints for suppliers who do not cooperate with the review. The specific steps are as follows: 

Initial Admission Review: Suppliers first submit their qualification documents, product inspection reports, etc. on the Huazhu E-commerce platform. The Huazhu Supply Chain Procurement Department checks the completeness and validity of the materials, and conducts a preliminary screening to determine if they meet the entry threshold for the category. For example, a comprehensive assessment was conducted for laundry suppliers, and the initial screening and elimination rate was as high as 80%. 

Sample and on-site verification: After passing the initial review, the supplier is required to provide samples for testing to verify whether they meet the size, material, and other specification requirements; at the same time, the review team conducts on-site inspections of the production or service site to check whether the equipment status, production process, and on-site safety management meet the standards, and can take photos of the on-site equipment and operations for retention. 

Periodic inspections and on-site audits during the cooperation: After the cooperation, Huazhu will continuously supervise through mechanisms such as third-party quality inspections and special on-site audits. For example, it will conduct irregular inspections of product quality, verify the washing quality of linen and the freshness of food, etc.; for service suppliers, it will also check whether the details such as the attire of delivery personnel and the delivery timeliness comply with the standards. 

Problem rectification and review: If any issues are identified during the review process, the supplier must rectify them within the specified time frame. If they refuse to cooperate with the review, Huazhu has the right to terminate the cooperation. After the rectification is completed, the review party will conduct a review to confirm compliance before resuming the cooperation.