What a factory audit in China should cover, from legal documents and capacity to quality systems and working conditions, and how to use the results.
A factory audit checks whether a supplier is what it claims to be and whether it can produce your product at the quality and volume you need. It is most useful before a first large order, or before moving production to a new supplier.
Types of audits
- Supplier verification: a basic check that the company exists, its documents are real and it actually has a factory.
- Manufacturing audit: equipment, capacity, processes and quality systems.
- Social compliance audit: working conditions, wages, working hours, health and safety.
- Environmental audit: waste, emissions and the related permits.
Legal and company documents
- Business license: name, scope, registered capital and date of establishment.
- Export registration and the documents they usually prepare for export.
- The bank account in the company’s own name.
- Product test reports and management system certificates, if they claim to have them.
Production capacity
- Number of production lines and machines for your product.
- Monthly capacity and how much is already committed.
- Which processes are done in-house and which are subcontracted.
- Real lead times for orders similar to yours.
Quality system
- Checks of incoming materials.
- In-line checks during production.
- Final inspection and test equipment.
- Records of defects and corrective actions.
- Calibration of measuring tools.
Working conditions
- Working hours and rest days.
- Wages and records.
- Fire safety, exits and protective equipment.
- No child labor or forced labor.
Beyond ethics, many retailers and marketplaces require social compliance from their suppliers.
Warehouse and packaging
- Storage conditions for raw materials and finished goods.
- Separation of defective products.
- Packing area and materials.
Using the results
An audit report does not just say pass or fail. Use it to:
- Compare suppliers on objective criteria.
- Agree on improvements before production.
- Adjust your quality plan: more inspections for a supplier with weaker processes.
Audit or inspection?
An audit assesses the supplier. An AQL inspection assesses a specific batch of goods. You need both: one to choose well, the other to check each order.
Zyntral reviews certifications, legal documents, working conditions and capacity before you commit to a supplier, through its certification consulting service. For the full selection process, read how to choose the right supplier in China.
