Factory audit standards

Inside a SEDEX Audit: What Flipkart, Amazon, and Walmart Look For

In today’s world of international trade, commercial interactions with multinational corporations like Amazon, Flipkart, and Walmart are now based on factory audit standards. They are more than merely recommendations. These high-end businesses prioritise transparency in business operations, ethical sourcing, and worker safety above all else. The well-defined SEDEX audit procedure is heavily relied upon to ensure that their providers meet these criteria. To become a manufacturer or exporter in their supply chain, you must be knowledgeable about the fundamental requirements for a plant inspection and the SEDEX audit checklist.

The Reason Big Retailers Use Sedex

The worldwide SEDEX system promotes transparency and fairness in the procurement process. The SEDEX audit, also known as the SMETA (Sedex Members Ethical Trade Audit), assesses firms based on labour rights, health and safety, the environment, and corporate ethics. These audits are used by firms like Amazon, Walmart, and Flipkart to make sure that their suppliers abide by factory audit norms and conduct ethically.

What Do These Retailers Look For?

Although each merchant has distinct needs, the majority of them concentrate on these four areas:

1. Positive Work Environment

Health and safety regulations in the workplace are heavily emphasised by the SEDEX checklist. Auditors check to see if employees are working in a secure environment. They concentrate on a few key areas, such as:

Safety equipment available

fire alarms and escape routes

procedures for emergencies

Clean drinking water and sanitation

For example: “Responsible Sourcing” program, Amazon requires that its vendors conduct regular risk assessments and provide proof of safety training.

Failing to comply with these factory audit criteria may result in a loss of business opportunities with Walmart or Amazon.

2. Standards for Fair Employment

Equitable pay and ethical labour practices are high priorities for Walmart, Amazon, and Flipkart. The SEDEX audit evaluations cover a range of subjects, including:

Overtime and work schedule regulations
Compliance with the minimum wage
Unused child or forced labour
agreements for employees and identification proof

For example: Flipkart’s Code of Conduct prohibits any discrimination in its hiring practices based on caste, religion, gender, or age.

Companies will be able to build lasting credibility by adhering to these standards for factory audits.

3. Environmental

Retailers now place a greater emphasis on sustainability than ever before. The following topics are covered by the SEDEX audit:

Waste management infrastructure

the use of chemicals

Strategies for saving energy

laws pertaining to pollution

For example: The “Environmental, Health, and Safety Compliance Policy” at Walmart requires vendors to keep track of their energy use and emissions data.

Throughout SEDEX audits, factories using environmentally responsible procedures are viewed more favorably.

4. Transparent Business Ethics

SEDEX is a global initiative that drives ethical and sustainable sourcing worldwide. The SEDEX audit, also known as the SMETA (Sedex Members Ethical Trade Audit), assesses companies according to labour rights, health and safety, the environment, and corporate ethics. Businesses such as Amazon, Walmart, and Flipkart use these audits to guarantee their suppliers adhere to factory audit standards and maintain ethical behaviour.

How to Prepare for a SEDEX Audit

It is essential to be audit-ready to meet the requirements of SEDEX and factory audits.

Step 1: Go over the SEDEX Audit Checklist.

These crucial elements need to be thoroughly inspected:

checks on health and safety

interviews with staff

Document reviews (ID proofs, contracts, payrolls)

Where is it situated?

Rules for administration

Templates for audits can be found on the SEDEX website, or you can inquire about your client’s preferred format

Step 2: Update Documentation.

Maintain precise and current records at your factory, including:

Payroll and attendance data

Security training records

evaluations of risk

duplicates of IDs and contracts

Accounts of the impact on the environment

Step 3: Train and Engage Staff

The audit process includes many staff interviews. Ensure that all of your staff members are knowledgeable about their rights and that no one feels threatened. Auditors may readily spot rehearsed answers.

Step 4: Conduct Internal Mock Audits

Using the SEDEX inspection checklist, conduct a sample audit to look for warning signs. Deal with any issues immediately, whether they be gaps in HR data or missing fire extinguishers.

What Happens After the Factory audit standards?

With the audit report, you’ll get:

Problems with noncompliance (Major/Minor)

The prerequisites for initiating remedial measures

deadlines for resolving problems
Recommendations for improvement

On the SEDEX platform, where the audit results are uploaded, clients such as Amazon, Walmart, and Flipkart may see your compliance status. Passing a factory inspection is a necessary step in establishing trust with foreign clients; it goes beyond simply overcoming an obstacle. A flawless SEDEX audit can act as your passport to lucrative deals with Flipkart, Amazon, and Walmart. Integrating ethical, secure, and transparent procedures into your daily operations will improve the efficiency of audits and give the impression that your company is a reputable worldwide provider.