COSTCO factory inspection has requirements for social responsibility, quality, and counter-terrorism. COSTCO will designate a third-party certification body to conduct COSTCO factory inspections on its suppliers. COSTCO's social responsibility and anti-terrorism factory inspections are usually conducted on the same day and reviewed by the same certification body. COSTCO quality factory inspection is very difficult, and different certification agencies will arrange audits separately. After each audit, the certification body will release an on-site inspection report, reporting any issues found during the factory inspection and reporting to COSTCO. After the approval meeting, the report will be uploaded to COSTCO's supplier management system. COSTCO assigns an account to each supplier on the COTCO management platform. Suppliers can click on the TASK tab to view the issues in each audit, upload evidence and improvement measures, and close the problem points at the designated time.

Costco factory inspection level classification

Costco's social responsibility factory inspection level classification:

1. Accept/Green Light High Performance (90-100 points) (Qualified)

2. Defective/Yellow Light Intermediate Performance (70-89 points) (Qualified)

3. Improvement needed/Orange light LowPerformance (40-69 points)

4. (Unqualified) Serious/Red Light Critical (0-39)

Costco GMP Quality Inspection Level Classification:

1. A score of 85 or above, without MAJ and CRI items, is considered passed. The validity period is one year;

2. There are no MAJ or CRI issues, and the total number of issues for MINOR and MODERATE does not exceed 25, which can generally be resolved;

3. If there are MAJ and CRI items, no matter how high the score is, it will not pass and will need to be reviewed three months later.

(Qualified) Accepted/Green Light HighPerformance (90-100 points)

(Qualified) Defective/Yellow Light Intermediate Performance (70-89 points)

(Qualified) Improvement needed/Orange light LowPerformance (40-69 points)

(Unqualified) Serious/Red Light Critical (0-39)

The benefits of Costco 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) The role of stabilizing cooperation with buyers and expanding into new markets lays a solid foundation for long-term development.

(4) Enhance management systems, improve relationships with employees, thereby increasing productivity and profits.

(5) Minimize potential business risks such as work-related injuries or even fatalities, legal disputes, or loss of orders.

(6) Developing new markets and customers: Socially responsible companies will stand out from competitors.