Our priority is to verify that production conditions reliably hit our high standards and prevent non-compliance with the quality and safety requirements. We conduct audits of production facilities operated by private label suppliers and foreign producers.
Russian Supplier Audits
Audits of local private label producers are conducted according to the Company’s Regulations for Ensuring the Quality of Private Brand Goods. Fix Price’s quality control experts are authorised to perform audits prior to or after a supply contract is executed. We typically audit suppliers once every two years. However, audits may be conducted more frequently, including when a new production facility is brought online, if we receive negative customer feedback or if issues were raised in the previous audit.
Audit checklists reflect the product category (Food, Drogerie,Household chemicals, cosmetics and hygiene products and Non-food), with each of them containing over 85 questions across more than 10 sections. The questionnaires cover diverse areas, including quality management and product safety (whether a quality management system, a tracking system and HACCPHazard Analysis and Critical Control Points, or HACCP, is a management system in which food safety is managed by identifying, analysing and controlling hazards affecting the safety of food products. When implementing food production processes involving compliance with safety requirements, a producer must develop, implement and maintain HACCP-based procedures for food products are in place), production facilities and conditions, product transportation, HR management, and environmental matters, such as whether a facility pollutes the local environment and how mature and well-implemented waste management practices are, for example waste disposal in labelled, closed containers, etc.
A supplier passes the audit if its production facility receives at least a 90% score. Should they fail to pass, we create a roadmap of activities with the supplier to deliver the required changes.
In 2022, we managed to double the number of audits thanks to the final easing of COVID restrictions which hampered audits in previous years.
Foreign Supplier Audits
When working with foreign suppliers, Fix Price engages local agents. They build strong relationships with new and existing producers, while searching for goods and new production facilities, collaborating with current manufacturers, supervising merchandise production and quality, and checking the accompanying documentation.
The agents are also responsible for arranging audits of producers of imported goods, which are carried out by specialist organisations and laboratories accredited in their respective country. The reports they prepare following these inspections contain data on the suppliers, their quality and process management, certification, product streams, etc. The audit results are used to assess each of these aspects and make decisions regarding further cooperation.