Kmart factory inspection
一、Introduction to Kmart
Kmart is the largest discount retailer in the United States and one of the world's largest wholesalers. Kmart operates traditional Kmart and Kmart hypermarkets, as well as Kmart supermarkets, providing convenient shopping in 50 states in the United States, Puerto Rico, Guam, and the Virgin Islands. This kmart, with the title of the world's largest retailer and one of the world's largest wholesalers, if a certain manufacturer passes the kmart factory inspection, it is said to have opened a ladder to the world and the road to the European market is smoother.
二、Kmart factory inspection audit
Audit type
As part of the Kmart Ethics Procurement Program, there are three types of Kmart ESC Audits: initial audit, follow-up audit, and update audit.
Initial audit
After the new supplier/factory is registered in the Kmart system, Kmart does not have a direct and in-depth understanding of their social responsibility performance. Therefore, the initial audit is a way for Kmart to understand the new supplier/factory's social responsibility performance. At the same time, Kmart has gained a rough understanding of the gap between suppliers/factories and the Kmart Ethical Procurement Guidelines (Kmart ESC) through the initial audit.
So for suppliers/factories, the initial audit is also a good opportunity to showcase their image in terms of social responsibility to Kmart.
Follow up review
When the supplier/factory has already undergone Kmart inspection, but the results in the previous audit were not understood or did not reach a level of reassurance for Kmart, follow-up audits are used as a means to monitor the supplier/factory's continuous improvement.
Update Review
When the supplier/factory has already undergone Kmart's factory inspection and the previous audit results have minimal brand reputation risk for Kmart, then Kmart will conduct an audit of the supplier/factory after a considerable period of time, which is an updated audit.
Because standards and supplier/factory performance are dynamic, timely updates and audits can systematically and periodically understand supplier/factory social responsibility performance. At the same time, new standards can be transmitted to suppliers/factories in the form of audits.
At the same time, different types of Kmart factory inspection audits may also have some differences in inspection costs, and may have a certain impact on the results of Kmart factory inspection audits.
Latest KMart factory inspection supplier/factory registration
Importers producing well-known domestic brand products in the United States (such as Levi's, Reebok, Whirlpool) do not need to register with SHC. Collaborative factories directly engaged in the production of the above products must register, but the address information of relevant trading companies, commercial agents, procurement centers or exhibition halls will not be processed. Subcontractors for the core processes of the factory or those who undertake multiple processes also need to register. In addition, all suppliers who participate in the assembly, production, or supply of parts for certain products, and involve Sears/Kmart factory trademarks and names, must be registered.
If the supplier fails to provide accurate and complete factory information to SHC Company before engaging in SHC product production in the factory, SHC Company will impose the strictest penalty on the supplier, which may result in a fine of 5% of the total order amount or $10000. In serious cases, cooperation with suppliers will be terminated. All suppliers must register their collaborative factories with the Supplier Code of Conduct Review Department before producing the following types of products.
All products imported through Sears or Kmart inspection factories (including all direct and indirect import suppliers/factories); Sears or Kmart branded products (such as Covington, Essential Home, Kenmore); Sears or Kmart authorized brand products (such as Joe Boxer, First Issue, A-Line, Parallel); All other company brand products, but the contract specifies that Sears or Kmart must perform supplier review (such as Martha Stewart, Disney direct agreement retailer); Supply branded products without origin identification (such as Coolwear, Wear First, Mastercraft).
Review rating of Kmart factory inspection
Description of non conformities in the audit rating. Follow up on the impact of the audit schedule on the business. Minor non conformities are acceptable, such as minor deficiencies in health, safety, and document record keeping. Annual improvements have no impact on the business. There are many minor non conformities and at least one major non conformity. If the overtime payment is less than about 90 days and there is no impact on the business, minor non conformities are not acceptable, such as forged documents, If the minimum wage payment is less than about 60 days, it may affect the termination of future business cooperation. Serious non conformities such as child labor, forced labor, bribery, or failure to pass three times - termination of all business. After each audit, SHC company will issue a formal audit rating to the supplier/factory with the audit conclusion. There are three formal audit ratings: acceptable, continuous improvement, or unacceptable. Suppliers must review the audit report as required and require the factory to develop a detailed improvement plan and schedule on the audit report.
Kmart Factory Inspection Consultation - Factory Inspection Risk Assessment
If the supplier/factory needs to apply for the review exemption from the global review department of SHC Company, they can provide the supplier's internal audit report or social responsibility certification certificate. SHC will consider whether to accept internal review conclusions or social responsibility certification to replace SHC's evaluation.
All suppliers and factories engaged in the production of SHC company brand products must undergo factory audits, and SHC company uses a professional risk assessment system to conduct risk assessments for all factories. This evaluation will include a review of the registered country of origin, the valid social responsibility system certification certificates held by the factory (such as WRAP certification, ICTI certification, SA8000 certification, FLA certification), and the supplier's internal audit mechanism (such as the supplier's internal code of conduct audit, etc.).
As many suppliers have established internal audit mechanisms for their factory audits, SHC Company will be committed to helping suppliers improve their internal audits and appreciating their efforts by reducing the frequency of collaborative factory audits among suppliers. In this regard, SHC also conducts internal code of conduct audits for suppliers. Suppliers can submit their internal code of conduct audit projects to SHC. If the supplier's internal audit operation system is proven to be effective for the factory, SHC company will consider accepting the audit report conducted by the supplier for the factory.
In addition to the supplier's internal code of conduct audit activities, SHC Company will consider accepting the audit results of factories that have passed the SA8000/WRAP/ICTI/FLA certification provided by a well-known independent third-party notary firm and can provide current (within 12 months) valid certificates.
The importance of factory inspection through KMart
Kmart is the largest discount retailer in the United States and one of the world's largest wholesalers. Kmart operates traditional Kmart and Kmart hypermarkets, as well as Kmart supermarkets, providing convenient shopping in 50 states in the United States, Puerto Rico, Guam, and the Virgin Islands. This kmart, with the title of the world's largest retailer and one of the world's largest wholesalers, if a certain manufacturer passes the kmart factory inspection, it is said to have opened a ladder to the world and the road to the European market is smoother.
Here is more about the importance of KMart factory inspection:
1) Establishing a management system that meets international requirements can gain international recognition and increase the ability to compete head-on with well-known brands
2) Encourage consumers to establish positive emotions towards the product;
3) Stabilize cooperation with buyers and expand new markets, laying a solid foundation for long-term development;
4) Enhance management systems, improve relationships with employees, and thereby increase productivity and profits; Content from dedecms
5) Minimize potential business risks such as work-related injuries or fatalities, legal proceedings, or lost orders;
6) Developing new markets and customers: socially responsible companies will stand out from their competitors.
Kmart factory inspection process
Summary of the main processes for KMart customer factory inspection: initial review, first follow-up review, second follow-up review, follow-up review requirements, definition of candidate qualifications
1. Initial Review
The first contact with the factory; Need a more detailed explanation at the first meeting; Comprehensive review; Factories with over 100 workers require two auditors;
2. First Follow up
Second contact with the factory; Review only the last major violation; Whether it is necessary to have an interview with the workers depends on the previous violation situation; Only one auditor is required, but must be one of the personnel who participated in the previous audit;
3. Second Follow up
Third contact with the factory; Review only the last major violation; Whether it is necessary to have an interview with the workers depends on the previous violation situation; Only one auditor is required, who is one of the personnel involved in the initial audit, but he/she must contact the auditor who conducted the first follow-up to understand the specific situation.
4. Follow-up audit requirements: Filing for follow-up audit
After the audit, it must be completed, and the file report should at least be as follows:
Previous audit report
Support files that previously violated regulations
CAPAR (Improvement Report)
Worker Interview Record (if required): Verify if the workers who participated in the last interview are still in the factory
Supporting documents include:
Evidence of violation
Procedure for determining whether the last violation has been improved
Conclusion of improvement or no improvement
New violations discovered - explain why they were not discovered in the previous audit
Note: In order to ensure consistency in the audit, it is recommended that the auditor participating in the initial audit conduct the follow-up audit
5. Define the qualifications of candidates
What is the 'auditable candidate factory'
All products produced under the Disney brand.
What is a 'candidate factory that does not require audit':
Homework (such as mom and pop stores, individual businesses)
Drawing and computer design (working in office buildings, not involving factories)
Individual artist
What is a 'gray zone'
Home Work/Home Crafts
Number of workers
Packaging Material Factory
Assembly plant
Introduction to KMart Factory Inspection Data
The factory inspection teacher will introduce important issues in the KMart factory inspection materials to everyone.
1. Legitimacy of the company:
The customer verifies the legality and safety of the company by reviewing the company's business license, tax registration certificate, fire safety diagram, and other documents and data.
2. Child labor and underage labor:
Guests are absolutely prohibited from hiring child workers under the age of 16. They can accept the employment of underage workers aged 16 to 18, but must have approval from government departments and practical actions to ensure the physical and mental health of underage workers.
3. Distinction:
Customers do not allow the company to discriminate based on gender, race, age, religion, and other factors when hiring and promoting employees. Factory inspection personnel generally review all personnel personnel files, as well as personnel files and labor contracts that have left in the past 6 months.
4. Working hours:
The company must ensure workers' rest time in accordance with local laws and regulations, with at least one day off per week and no more than 60 hours of work per week.
5. Labor remuneration:
Overtime on weekdays and statutory holidays shall be paid to employees according to the salary rate stipulated by local laws, and the monthly salary shall not be lower than the local minimum wage standard. Customers usually check the attendance and salary distribution records of employees in the past 3 or 12 months.
6. Disciplinary measures:
Customers do not accept any fines, beatings, or other measures imposed by the company on employees, let alone any forced labor behavior by the company.
7. Health and Safety:
The company should provide a healthy and safe workplace with necessary environmental protection measures and relevant permits. Employees in special professions should have corresponding operation certificates.
8. Counter terrorism:
There should be not only corresponding procedures for personnel exchanges and goods circulation, but also corresponding operational records. For the physical security of the company, needle control management must keep records according to customer requirements.
Please refer to:
1. Counter terrorism training:
2. Environmental health and safety:
KMart Factory Inspection Consultation and Guidance Materials
KMart is the largest discount retailer in the United States and one of the world's largest wholesalers. Kmart operates traditional Kmart and Kmart hypermarkets, as well as Kmart supermarkets, providing convenient shopping in 50 states in the United States, Puerto Rico, Guam, and the Virgin Islands.
KMart Mission: KMart will become the best place for middle-class families with children to choose discounted products, and KMart will better meet their daily and seasonal shopping needs in competition. Kmart will become the best place for middle-class families with children to choose discounted products, and Kmart will better meet their daily and seasonal shopping needs in competition.