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The Importance of Factory Audits Before Placing an Order
JJohn Smith
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- Placing an order with a new supplier without a factory audit is like buying a car without test-driving it—a huge gamble. A comprehensive factory audit is an essential due diligence step that verifies a supplier's legitimacy, capabilities, and quality standards before you commit significant capital.
What Should a Factory Audit Cover?
- A good factory audit goes beyond a simple walkthrough. It should be a systematic evaluation of multiple facets of the operation.
1. Company Legitimacy & Background:
- Verification of business licenses and export licenses.
- Confirmation of ownership structure and company history.
- Review of any certifications (e.g., ISO 9001).
2. Production Capabilities:
- Assessment of machinery and equipment condition.
- Evaluation of the production workflow and capacity.
- Review of the factory's R&D capabilities.
3. Quality Management System (QMS):
- Inspection of incoming quality control (IQC) for raw materials.
- Review of in-process quality control (IPQC) checkpoints.
- Assessment of final quality control (FQC) procedures before shipment.
4. Social & Ethical Compliance:
- Checking for safe working conditions.
- Verifying fair labor practices and absence of child labor.
- Basic environmental compliance checks.