Supplier Audit

WCA factory inspections are mainly targeted at the US market. Many American customers require their suppliers, subcontractors, brand licensees, etc. to pass WCA audits before they can accept orders and ship goods. Some customers also need to obtain corresponding certificates. Now, many WCA inspection factories are coming one after another.

The benefits of WCA factory inspection:

1. A high morale, more productive, and healthy team

2. Through real-time information and knowledge management, it is easy to make quick and clear decisions

3. High transparency and more informative collaboration with suppliers

4. Reduce excessive and repetitive audits

5. Achieve effective corporate supervision and assist suppliers in becoming preferred suppliers.

6. Suppliers will not be awarded the "Outstanding Achievement Award" certificate to showcase their outstanding achievements.

3、 Scoring criteria for WCA factory inspection

Compared to other factory inspection standards, ITS' WCA factory inspection standard is relatively cumbersome, with over 300 audit points divided into four levels: Zero Tolerance, Major, Moderate, and Minor.

1、 Green (85-100 points): Most requirements meet (DG requirement of 85 points or above);

2、 Yellow (71-84 points): The issues with moderate risk partially meet the requirements and must submit a Corrective Action Plan (CAP) in English within 15 days. Follow up review must be conducted 180 days later;

3、 Orange (51-70 points): Low standard, usually tracked and reviewed after 90 days;

4、 Red (0-50 points): Very low standard.

4、 The common issues in WCA factory audit mainly include three aspects:

1、 Regarding wages and working hours:

1. Due to the inconsistency between the provided attendance records and production records, it is impossible to determine the conformity between attendance and salary;

2. Due to the inconsistency mentioned above, it is impossible to determine whether the maximum weekly working hours and total overtime hours of employees meet the requirements;

3. Unable to confirm whether the employees themselves have recorded and confirm their true attendance records;

4. The salary table provided is incorrect and inconsistent;

5. Cannot determine whether there is at least one day of rest every 7 days;

6. Unable to determine whether the normal minimum wage/overtime pay/wage calculation method/piece rate wage calculation method meet the requirements;

7. Only 5 types of insurance are provided for 6 out of 25 people, and there is no social security approval;

8. Unable to determine whether annual leave/statutory leave/maternity leave is paid according to regulations;

9. Salary is not paid regularly

2、 Issues related to system management:

1. No written social responsibility policy;

2. No internal social responsibility standards and procedures have been established, and no social responsibility evaluations have been conducted on suppliers and subcontractors;

3. No written system has been established to identify and supervise the collection and implementation of laws and regulations;

4. No corresponding corrective and preventive measures have been taken to prevent social responsibility related issues;

5. Not conducting regular internal audits of social responsibility;

6. There is no environmental impact registration form and environmental impact assessment acceptance

7. No definition and authorization of social responsibility responsibilities;

8. No social responsibility management review has been conducted;

9. No representative of social responsibility management has been appointed;

10. No designated representative of the environmental manager has been appointed;

11. No training was provided to the management on the implementation of social responsibility;

12. No environmental management system has been established;

13. There is no established written procedure for evaluating and selecting subcontractors and suppliers in terms of social responsibility;

3、 Issues related to fire safety and health:

1. The fire extinguisher was placed on the ground without being hung up;

2. Insufficient fire-fighting equipment, no fire extinguishers in the raw material warehouse, and approximately 500 square meters without fire hydrants;

3. The safety doors do not meet the requirements. Two of the four are side sliding doors, and the other two are rolling shutter doors;

4. No safety exit signs