Log all audits in QuickBase so that you can track payment, and also log them on the Staples Inspection Grid. That way, you’ll be able to see a snapshot to track when a particular factory is due for an annual re-audit. Go to audits & inspections folder on the shared drive to find the inspection grids (Shared Drive > Compliance > Product Testing & Compliance > Audits & Inspections > Staples > Staples Inspection Grid).

**It is Advantus’ responsibility to pay for all Staples audits. If a factory fails or does poorly on an audit and the customer requires a re-audit, it is the factory’s responsibility to pay for the re-audit fee.**

Social Accountability (SA) Audit

The Social Accountability (SA) Audit is designed to ensure all suppliers of Staples branded products are capable of meeting Staples’ standard of social compliance. It is semi-announced with a 2-weeks audit window.

SA Audit Sections

1. Forced Labor (13 points) – evidence of forced labor, prison labor, full disclosure of Terms and Conditions for employment
2. Child Labor (14 points) – evidence of child labor, poly specifying youngest age for workers
3. Harassment and Abuse (7 points) – check for any physical, sexual, psychological, or verbal harassment or abuse to employees
4. Nondiscrimination Discrimination (8 points) – written  policies against discrimination, procedures to deal with discriminatory behavior (including hiring, salary, benefits, advancement, discipline, termination or retirement)
5. Health & Safety (4 points) – fire safety and emergency procedures, food storage/preparation
   1. First Aid & Medical Services (7 points) – first aid supplies, medical facility, trained first aid staff
   2. Facilities (38 points) – production area and dormitory conditions
   3. Food Preparation/Service (7 points) – cafeteria area, safe storage of food, food preparation area
   4. Fire Safety & Emergency Evacuation (18 points) – emergency exits, fire extinguishers, audible fire alarms, fire safety training to all employees
   5. Dormitories & Housing (28 points) – staffing housing is clean and well-maintained, fire & safety fire aid supplies, electricity 24 hours, adequate lavatories, sleeping area
6. Freedom of Association (3 points) – right to join trade unions, collective bargaining
7. Wages & Benefits (17 points) – minimum wage, overtime pay, deductions from pay
8. Hours of Work/Compensation (9 points) – adequate work records, work hours within 60 hours per week, and 12 hours per day
9. Ethical Standards (3 points) – suppliers are held to the highest standards of integrity. Corruption, bribery & extortion are strictly prohibited.
10. Environmental Impact (8 points) – all permits are up-to-date, proper rubbish removal, recycling, air & water, etc.

SA Scores

• 80-100% with no critical violations: factory becomes a Certified Vendor and a re-audit will occur in one year
• 70-79% with no critical violations: the factory is given a rating of “Conditional Pass” and must complete a Corrective Action Plan; a re-audit will occur in one year
  • If the factory fails the re-audit, a review will be conducted about the unresolved issues. Staples may sever ties with the factory, or if improvements are being made, they may elect to continue to work with the factory to help them make further improvements. Further audits will need to be done at assigned intervals to document progress until a passing score is attained.
• 69% or lower, or any score with a Critical Violation: Immediate Corrective Action require; a follow-up audit occurs in 3 months, and a post-probation audit occurs in 6 months. The factory is to complete a CAP and a Letter of Commitment (LOC) requesting a 6-month probationary period to document compliance. Staples must receive the CAP and LOC within 2 weeks of the audit date. During the probationary period, independent auditors will monitor and report progress on the corrective action to Staples. Upon completion of the plan, another audit will be performed to certify the vendor. A Post-Probationary (PP) audit will be performed 3 months after the passed Follow-Up audit.
  • If the factory passes the re-audit, they become a “Certified Vendor” and will need to re-certify again in one year.
  • If the factory fails the re-audit, a review will be conducted about the unresolved issues. Staples may sever ties with the factory, or if improvements are being made, they may elect to continue to work with the factory to help them make further improvements. Further audits will need to be done at assigned intervals to document progress until a passing score is attained.

SA Audit Costs

• Initial, Recertification and Post-Probation audit: $600 (factory workers within 500 people), $800 (for over 500 people)
• Follow-up audit: $485

Factory Audit (FA)

The Factory Assessment (FA) Audit is designed to ensure all suppliers of Staples branded products are capable of meeting Staples’ standards for manufacturing and quality assurance. Once a supplier has been qualified, recertification audits are required based on the score and geographic locations.

FA Audit Sections

1. Facilities (18 points) – plant layout, equipment, calibration, electronic communication systems
2. Quality Control System (16 points) – formal quality control program, training, reports, etc.
3. Purchasing and Incoming Material Inspections (14 points) – conformance to specifications, labeling, storage, rejections, and record-keeping
4. In-Process Quality Control (15 points) – set up, in-process quality control, rejections, disposals, and record-keepings
5.  Final Inspection (9 points) – final quality control procedures, functionality and safety, rejections, disposals, and record-keeping
6. Packaging (9 points) – storage, set up, segregation, in-process quality control, and final quality control of retail and master cartons
7. Chemical Management (5 points) – storage of chemicals, labeling, record-keeping
8. Non-Conforming Materials (14 points) – Segregating, disposal, re-works, scrap, and record-keeping

FA Scores

• 80-100%: factory becomes a “Preferred Certified Vendor” and will need to re-certify again in two years
• 70-79%: factory becomes a “Certified Vendor” and will need to re-certify again in one year
• 50-69%: the factory is given a rating of “Conditional Pass” and must complete a Corrective Action Plan; they will need to re-certify again in one year
• 49% or lower: the factory is given a rating of “Fail” and must complete a Corrective Action Plan and return it within 2 weeks of the audit date; they will be placed on probation. During the probationary period, independent auditors will monitor and report progress on the corrective action to Staples. Upon completion of the plan, another audit will be performed to certify the vendor.
  • If the factory passes the re-audit, they become a “Certified Vendor” and will need to re-certify again in one year.
  • If the factory fails the re-audit, a review will be conducted about the unresolved issues. Staples may sever ties with the factory, or if improvements are being made, they may elect to continue to work with the factory to help them make further improvements. Further audits will need to be done at assigned intervals to document progress until a passing score is attained.

FA Audit Costs

• Initial and Recertification audit: $385 (all-inclusive)
• Follow-Up audit: $185

Security/C-TPAT Audit (SE)

The factory must pass with a score of 80% or higher with no critical violations. If the factory scores 70% or above to 79%, Staples considers this a “Conditional Pass” and allows shipping the Staples with plans to re-audit the factory within 3 months. See the breakdown of scores:

1. C-TPAT Security Assessment score of at least 80% with no critical violations: factory becomes certified and will be re-audited in one year
2. C-TPAT Security Assessment score between 70% to 79% with no  critical violation: factory becomes certified with Corrective Action required, CAP must be completed and factory will be re-audited in one year
3. C-TPAT Security Assessment score below 70% or a critical violation is found: failed, re-audit is required

Critical Violations

1. General Security Conditions of Facilities
2. Procedural Security
3. Physical Security
4. Access Control
5. Security of Personnel Management

Pointed out specifically by Carl Luther at Staples:

• Make sure that 100% of employees have some sort of identification
• All visitors on the day of the audit (and should be every day) are to be accompanied by a designated employee. They should also have some kind of visitor identification and have signed in somewhere at the factory before entering.
• The auditor should be given a visitor ID and be made to sign in; it is not OK to just let the auditor come in.

See here for an overview of the C-TPAT audit process.

Access Staples audit reports by following the instructions here. The username and password for our Enovia account are located in the “Logins” tab under the “Compliance” app in QuickBase. To see instructions on how to access previous audit reports for a factory click here.