Factory audit checklist for China suppliers

Before the visit: desk verification

Start with checks you can do remotely. In China, every company has an 18-character Unified Social Credit Code (统一社会信用代码) on its business licence. You can look the company up on the National Enterprise Credit Information Publicity System (gsxt.gov.cn) or a commercial database.

• The company name on the licence matches the name on quotes, contracts and invoices.
• The business scope (经营范围) includes manufacturing of your product, not only trading.
• The registered address is an industrial site, and matches where the factory says it is.
• Date of establishment and registered capital are consistent with what the supplier claims.
• No records of serious legal disputes, administrative penalties or abnormal operation (经营异常).
• The bank account for payment is in the company's name, not a person's or another company's.

On site: company and premises

• The factory gate and signage show the same company name as the licence.
• The original business licence is displayed or can be shown.
• The site is a working factory, not only a showroom or an office.
• Ownership or lease of the premises, if the order is large or long-term.

On site: production

• Machinery for your product is on site, in working order and in use.
• Approximate number of production workers and the shift pattern.
• Which processes are done in-house and which are outsourced (e.g. plating, printing, embroidery, packaging).
• Products similar to yours on the line or in the warehouse.
• Working conditions, cleanliness and basic safety (fire exits, extinguishers, protective equipment).

Capacity and lead time

• Monthly capacity for your product type, and how much of it is already booked.
• Realistic lead time for your quantity, including material purchasing.
• Plans for peak seasons and the Chinese New Year shutdown.
• Raw-material suppliers and how long materials take to arrive.

Quality control

• Incoming quality control (IQC): are materials and components checked on arrival?
• In-process quality control (IPQC): are there check points on the production line?
• Final quality control (FQC/OQC): is there a final inspection before packing?
• Test equipment relevant to your product, and whether it is calibrated.
• Records of defects and rework, and how problems are traced to their cause.
• A sample room with approved samples kept for reference.

Track record and certificates

• Export markets the factory already ships to, and the types of buyer it serves.
• Management-system certificates (e.g. ISO 9001): check the certificate number with the certification body.
• Product certificates or test reports: check they cover your product and model, are current, and come from an accredited laboratory.
• References from other buyers, where the factory is willing to share them.

Red flags: when to stop

Scoring the audit

A simple approach works for most buyers: mark each section as acceptable, acceptable with conditions, or unacceptable. Any unacceptable item in the legal or production sections is a no-go. Conditions, such as "must stop outsourcing the printing" or "must add a final inspection", should be written into your purchase contract.

Factory audit vs quality inspection

An audit checks the supplier before you order; an inspection checks the goods. You usually need both: an audit for each new supplier, and a pre-shipment inspection for each order. If you cannot visit yourself, we carry out factory audits on site and send a photo report.