Due to its zero Covid policy, China is going to tight restrictions from time to time. This process may continue uninterrupted or may be repeated at intervals. In this case, foreign companies not located in China can't audit third-party "contract" manufacturers in China for reasons such as production or quality control, transportation organization, IP, etc., with their own auditors, engineers, or other managers.
Manufacturers and factories are at the top as the first link of the supply chain. Foreign companies operate inspection processes to produce the ordered products per the standards, protect the quality standards, and prevent trademark and patent violations. A foreign company may need to audit its manufacturing partner in China in various processes, including the following. These inspections may include routine inspections with stringent inspections or periodic visits.
1. Manufacturing Inspection
2. Social compliance audit
3. Good manufacturing practices (GMP) audit
4. Environmental Audits
5. Quality system inspection
6. Documentation and certificate inspection
7. Shipment inspection
How can you hire someone using Employer of Record (EOR) or Professional Employer Organization (PEO) services without a company in China to help you manage your supply chain, IP, and shipments?
The first option may be to get support from inspection companies. In this case, you do not need to have a company in China. Many companies engage a local expert in China to conduct an audit for them. In this case, getting service from inspection companies can be a quick and practical solution. But the expectations of foreign companies, especially those who have long and regular business in China, will be someone working on behalf of their own company. Working this way allows your auditor to be more reliable and to become familiar with and gain experience with the manufacturing partner, products, and processes in China over time.
Hiring an full time employee without a legal entity established in China is illegal. Therefore, you should prefer to find someone who will do the inspection and inspection work on behalf of your company through EOR or inspection agents. The Registered Employer (EOR) enables foreign companies to recruit technical personnel in many areas, not just manufacturer control, in the Chinese market.
An EOR legally and officially employs employees on your behalf. You may need to hire long-term quality and production engineers to oversee a manufacturer. Or you may only need a person who will inspect the shipment processes on certain days of the month. EOR offers a solution for you in all conditions.
Some foreign companies have a subsidiary or WFOEs in China. Still, during the pandemic process, the return of foreign employees to China and their use in manufacturer control processes could not be ensured. So they need to make a formal audit or interval send someone to check on the manufacturer partner. In this case, a similar service can be obtained using a PEO. In short, a PEO performs HR activities by employing staff on your behalf. It provides a legal entity in China from which you can recruit staff to continue your activities, including producer control.
PEOs can legally employ staff on behalf of another company operating in China. And manage employee services such as payroll, benefits, and compensation, saving you time and money while avoiding complex local procedures.