Walmart FCCA audit consulting

Walmart is an international retailer with supply-chain requirements covering quality, responsible sourcing, working conditions and environmental responsibilities. These requirements are relevant to suppliers in Vietnam and other sourcing markets.

Suppliers need to demonstrate that the facilities making their products have suitable capabilities and comply with the business ethics, social and environmental requirements applicable to them.

1. What is FCCA?

FCCA stands for Factory Capability & Capacity Assessment: an assessment of a factory’s production capacity and ability to meet product and quality requirements.

The assessment examines whether a factory can make the proposed product in the required quantities. FCCA, responsible sourcing (RS) and supply chain security (SCS) are distinct compliance areas. Whether an assessment applies to a factory, subcontractor or packing facility depends on Walmart’s requirements for that supply arrangement; they are not automatically identical for every supplier.

2. What does FCCA cover?

Preparation areas introduced in this article

• Management responsibility
• Management system
• Facility management
• Contamination prevention
• Product control
• Product testing
• Process control
• Competence assessment
• Industry-specific requirements

3. When is an FCCA audit required?

Where Walmart requires FCCA as part of a facility’s qualification, the supplier must complete the assigned process and use an audit provider accepted for that programme. Confirm the checklist, timing and approval requirements with the Walmart contact responsible for the facility.

Failure to complete a required assessment or corrective action on time may delay facility approval, orders or shipments. A positive assessment alone does not guarantee an order.

4. Which product sectors may be relevant?

Product sectors mentioned in the original article include the examples below. This is not a declaration that FCCA is mandatory for every product or supplier in these sectors:

• Home textiles
• Fine jewellery and accessories
• Electrical and electronic products
• Non-electrical products
• Toys
• Cosmetics
• Apparel
• Footwear

5. When should a factory check its audit status?

A factory should check with Walmart whether a new or updated assessment is required in situations such as:

• The existing FCCA report is no longer valid.
• An inactive factory is being reactivated.
• A new factory is being prequalified.
• The sourcing arrangement changes, including direct import arrangements.
• The factory has not previously produced products for Walmart.
• The importer of record changes.
• The factory’s status changes.

6. Benefits of FCCA preparation

• Demonstrate readiness to meet the buyer’s capacity and quality requirements and support a business relationship with Walmart.
• Organise evidence efficiently for audits; other required assessments still apply.
• Strengthen the quality management system.
• Identify and control manufacturing, product quality and safety risks.
• Improve transparency and trust between buyer and supplier.
• Improve quality performance.
• Improve reporting arrangements.
• Improve traceability.
• Use a buyer-specific assessment framework; FCCA is not a universal management-system certificate.
• Support customer confidence and potential business opportunities without guaranteeing approval or orders.

7. References

Walmart supplier requirements

Walmart September 2020 guidance: FCCA, RS and SCS context

The 2020 document explains the programme context. Before booking an audit, confirm the current requirements applicable to the facility with Walmart.