Every business, whether they are just starting out or if they’re established enough, requires a high degree of confidence in the reliabilities, product qualities, and production capacities of their product suppliers. One way to achieve this goal is through factory audits to ensure that you get dependable products built according to your specifications and up to your standards.

But what exactly is a factory audit? And how can it help you find the perfect production partner? Keep reading to learn everything you need to know about these investigations and how to leverage them for success.

What is a Factory Audit?

A factory audit is a type of assessment that takes place at the manufacturer’s facility. Typically, an experienced auditor assesses the factory’s production capacity, production lines, product quality, equipment, and workplace environment to ensure your chosen manufacturing company can meet your requirements as a buyer.

When auditing your supplier, the auditor will grade each criterion on a point scale from 0-100.

You’ll receive an in-depth report that details all aspects of their performance to give you a better idea of how well they will finish your project.

Also, the auditor does not work for any manufacturing company and has no vested interest in the outcome of the audit, so you can take their advice without question because they’re unbiased. If you’re unsure about what each score means in the report, don’t hesitate to ask them for advice on whether or not it is time to switch suppliers when necessary. Some may also be able to recommend a factory that will work better for your needs due to their experience and connection in the industry.

A factory audit can be used as the last step in qualifying a potential supplier or as a tool for ongoing supplier management with an existing supplier.

Why Do You Need a Factory Audit?

1. Ensure Quality

Even if you’ve managed to work successfully with a Chinese manufacturer in the past and assume that they will continue producing high-quality goods for years to come, do not be so sure. Many overseas buyers complained about the product quality starting to slip after just a couple of years despite a solid start to the relationship. You are guaranteeing quality and maintaining trust by taking the time and money to do a factory audit before starting your production project.

Audits are also useful if there are already suppliers from whom you purchase goods because audits will let you know if this current vendor is doing what they say they’re doing and living up to expectations.

2. Determine A Perfect Supplier

Countless manufacturing companies can be found easily in China since the country is world-renowned for its manufacturing sector. However, it doesn’t mean that all factories are created equally.  

So, if you want to know whether the supplier has safe systems to make your product without compromising its safety or your IP rights or not, and if they are a real factory or a trading company, doing some research beforehand is important when looking at potential relationships for your production project.

Factory audits are important because they provide you with information about a manufacturing company before awarding it as your supplier. These audits make sure the business complies with specific standards set forth by the industry.

3. Establish a Good Relation

Your supplier may have top-of-the-line production lines, experienced engineers, and skilled workers; however, things may go wrong now and then.

The more complex a product is the greater the potential error may happen. If you are manufacturing products with many components or complicated techniques, you might need to conduct a full factory audit to ensure everything is in order. This can be one of the best ways to establish a good relationship with your supplier because both of you have clear communication beforehand to avoid mistakes and make the production process run more effectively and smoothly.

Factory Audit Conclusion

When you are considering working with a new product supplier from China, it is essential to vet them as thoroughly as possible to avoid any red flags that may arise. Imagine when you place your first order with a factory, and everything seems perfect at first glance. However, after some time when you discover many flaws in the products due to the factory’s responsibilities, you will end up with an endless stream of headaches. This would be why you need a China factory audit to protect yourself against fraud.

In addition, using a factory audit service allows you to compare different manufacturers and choose the most appropriate one for your company. If you need a factory audit service, we are always happy to help! Contact us today.