Inspection in China – Why have it, How it works and the Benefits
Inspection in China – In today’s world of global sourcing, China remains a significant provider of products to many. However, with disruption, delays, and high delivery costs, many firms cannot afford the cost of receiving defective products. They also want to avoid wasting valuable resources dealing with suppliers that cannot produce quality products.
Some firms send staff across to China to visit suppliers and inspect products before approving them for shipment. In contrast, others would factor in a percentage number of failures into the cost of the product. Unfortunately, both these approaches no longer work in China.
Many firms realise that they can reduce their costs and have an inspection in China policy, by using third-party inspection firms to conduct checks for them. This enables them to continually monitor these suppliers and ensure they produce products to the required quality levels.
This article aims to inform the reader about the importance of inspection in China.
What is an Inspection in China?
An Inspection in China involves an inspector checking a product, auditing a factories practices and policies or verifying a seller or buyer.
An Inspection in China can cover many stages across the production and loading process. It can take place at a factory, warehouse or loading facility. Almost all products can be checked, moreover the inspectors can tailor their inspections for each industry, from food to electrical goods.
An inspection in China can be conducted by a producers internal QC term, the buyer’s team, or a 3rd party organisation which is more common.
Types of Inspection in China
There are two core types of Inspections in China, Product Inspections and Audits
Product Inspections consist of:
1. Pre-Shipment Inspections in China
A Pre-Shipment Inspection is the checking of Finished Goods. Here, the inspector will check for defects, quality, and specifications you require. Please visit the Goodada Pre-Shipment Inspection page to learn more about this inspection.
2. Loading Inspections
There are two types of loading Inspections.
2.1 Outbound Loading – This takes place at a supplier’s location. Here the inspector will witness and verify the loading of your goods into their shipping containers. To learn more about this, please visit the Loading Inspection page.
2.2 Inbound Loading – This occurs at the port of discharge or at the warehouse where the goods have been unloaded. Here an inspector can check goods that have arrived, they can verify the quantities and check for any defects. To find out more, please visit the Inbound Cargo Inspection page
3. During Production Inspections
Here an Inspector will visit a factory to check the goods as they are being made. This is very useful for clients experiencing delays or issues of communications with their supplier in China
4. Raw Materials Inspection
A Raw Material Inspection is a check of the materials and components used to make a product. This inspection should occur before the factory has commenced the manufacture of the client’s order.
Types of Audits:
5. Supplier Verification Audit
This audit is conducted on any supplier for a client. Our Auditor can visit a Supplier to confirm that they are real and can supply the goods which are being offered to our client
6. Buyer Verification Audit
Clients who are looking to sell products to China request this service. Here our auditors can visit and review any potential buyer for a client. This confirms that the buyer is legitimate, has a history of trading the same or similar products, and also can import the products into China.
7. Factory Audit
This audit reviews the factory making ht goods. Our auditors can review their certifications and licenses, production and quality processes, export history, and relationship with a trading company.
8. Social Audit
This audit is focused on worker welfare and child labour practices within a factory. Our auditors work to SA8000 guidelines.
To learn more about China Quality Inspections, please visit TCI’s China Inspections page.
Tips to help when conducting an inspection in China
When conducting an inspection in China, you should always have the goods inspected at the factory before they are shipped out. This inspection is called a Pre-Shipment Inspection.
So, you should allow five days from the final day of the Pre-shipment inspection in China to the day of loading the products onto a container. These five days will let you review the inspection report, discuss any issues with the supplier and give them time to fix any problems.
The inspection should be done to AQL levels. For more information about AQL, please visit the Goodada AQL inspection page.
Additionally, you should also have a bi-lingual purchase contract written up between your firm and the supplier in China. This contract should detail the specifications of your goods. The contact should be used to draw up the inspection checklist. Please read my post about China Purchase Contracts to find out more about purchase contracts.
The importance of having an inspection in China
Having an inspection in China reduces the risk of losing money through fraud or receiving defective products.
An inspection in China will also ensure that the goods you are buying meet your specifications and requirements. This is important as your companies’ online ratings, or brand name could be damaged by distributing defective products.
Requesting an audit will provide you with intelligence and background information about a factory or supplier in China. It is important as it reduces your exposure to potential product quality issues, fraud and enables you to achieve the lowest purchase price for your products.
TCI provides China Inspection services and Global Inspection Services
TCI China offers a range of high-quality supply chain services, including inspections in China. We have over 20 years of experience inspecting products and auditing factories and suppliers. Our team of experts in China fully understand our client’s information needs and requirements.
Additionally, Goodada Inspections offers inspection services to other countries outside of China. Today Goodada offers Inspection services in over 76 countries. Therefore, many clients now use our inspection services to check the quality of goods across the entire supply chain. Contact us to learn more about our inspection in China services or inspection service in any other country.
How many times should we send the 3rd party auditor to the China factory to inspect?
The number of times you should send a 3rd party auditor to the china factory depends on the service you require the Auditor to conduct.
This is considered best practice to conduct an audit on your supplier every 24 months. The auditor will identify any changes to the factory, this work practices, certifications and its staff. The auditor will also collect updated certificates and licencing information for your files.
Suppose an auditor has been sent to a factory to inspect products. In that case, you should send the Auditor to the factory at least two times – or a Pre-Shipment Inspection and a Container Loading Inspection.
Suppose there is an instance that an auditor’s findings Pre-Shipment Inspection are a fail. In that case, you should send the auditor back until the goods pass the inspection.
How much does an inspection in China cost?
Generally, Product Inspections in China cost from €325 per man-day. These prices should cover the cost of transport and accommodation for the inspector.
Supplier Audits and Factory Audits typically start around €550 for the service. Social Audits are the more expensive service with their prices starting from €1100.
TCI China Contact Details
So, TCI China has been helping firms source products from China for over 20 years. Since 2018 we have developed a specifically designed service to support Small Medium Businesses (SMBs) who list products on Amazon Marketplace to source their goods from China.
So, if you are looking for more information, please do not hesitate to contact me on my LinkedIn profile or at the details below:
Mobile- Messenger (Click to Connect)
Or at the following numbers:
(Europe/ Rest of the World) +353 1 885 3919
(North America) +1.518.290.6604
Or email me, Aidan Conaty