The Importance of Factory Audits Before Placing an Order

• Placing an order with a new supplier without a factory audit is like buying a car without test-driving it. It is 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.

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).

Production Capabilities:

• Assessment of machinery and equipment condition.
• Evaluation of the production workflow and capacity.
• Review of the factory's R&D capabilities.

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.

Social & Ethical Compliance:

• Checking for safe working conditions.
• Verifying fair labor practices and absence of child labor.
• Basic environmental compliance checks.
• A thorough audit provides a detailed snapshot of a potential partner, giving you the confidence to move forward or the evidence to walk away, saving you from costly mistakes down the line.