Before committing a large order with a supplier in Asia, there’s a fundamental question: can this factory produce what I need, with the quality I expect, within the agreed timelines? A factory audit is the tool that answers this question with evidence, not promises.
What is a factory audit?
It’s an on-site, independent assessment of a manufacturer’s facilities, processes, and capabilities. A professional auditor visits the factory and evaluates aspects such as:
- Facilities and machinery: Equipment condition, maintenance, available technology
- Production processes: Workflows, controls at each stage, traceability
- Quality control system: Inspection procedures, records, defect management
- Actual production capacity: Number of lines, shifts, verifiable monthly volume
- Raw material management: Storage, inventory control, input suppliers
- Working conditions: Safety, hygiene, labor law compliance
The result is a detailed report with findings, photographs, and an objective assessment that allows you to decide whether that supplier is reliable for your operation.
When do you need a factory audit?
There are clear situations where an audit is highly recommended:
Before working with a new supplier. It doesn’t matter how many good samples they’ve sent you — samples are made with special care. What matters is whether the factory can maintain that quality in mass production.
Before a large order. If you’re going to commit a significant amount of capital, the audit is a minimal investment compared to the risk.
When you’ve had quality problems. If previous orders have arrived with defects or inconsistencies, an audit helps you identify the root cause in the supplier’s processes.
When your client requires it. Many wholesale buyers and retail chains require that their suppliers demonstrate their source factories have been audited.
The most important international standards
ISO 9001: Quality Management System
ISO 9001:2015 is the most widely adopted quality standard in the world, with over one million certified organizations. It’s issued by the International Organization for Standardization (ISO).
What it certifies: That the organization has a structured quality management system — that is, documented processes to ensure consistency in production and customer satisfaction.
Important point: ISO 9001 does not certify that individual products are high quality. It certifies that the company has processes to manage quality. A factory can be ISO 9001 certified and still produce a defective order if it doesn’t follow its own processes.
Seven principles of ISO 9001:
- Customer focus
- Leadership
- Engagement of people
- Process approach
- Continuous improvement
- Evidence-based decision making
- Relationship management
SA8000: Social Responsibility
SA8000 was developed by Social Accountability International (SAI), originally published in 1997. It’s a certification standard — organizations can be formally certified after a rigorous audit.
What it certifies: Ethical labor practices and social responsibility. It evaluates nine areas:
- Child labor
- Forced labor
- Health and safety
- Freedom of association and right to collective bargaining
- Discrimination
- Disciplinary practices
- Working hours
- Remuneration
- Management system
Based on: ILO Conventions, the United Nations Convention on the Rights of the Child, and the Universal Declaration of Human Rights.
BSCI: Business Social Compliance
BSCI (Business Social Compliance Initiative) was developed by amfori, a business association headquartered in Brussels.
Key difference from SA8000: BSCI is not a certification, but an audit system. Factories receive a rating (A, B, C, D, E) instead of a pass/fail certificate. It’s less rigorous than SA8000 but widely used, especially in European retail supply chains.
Areas it evaluates:
- Freedom of association
- Discrimination
- Fair remuneration
- Decent working hours
- Occupational health and safety
- No child labor
- Protection of young workers
- No precarious employment
- No forced labor
- Environmental protection
- Ethical business behavior
What is the difference between a factory audit and a quality inspection?
They are complementary tools, not substitutes:
| Factory audit | Quality inspection | |
|---|---|---|
| When | Before committing the order | During or after production |
| What it evaluates | The factory and its capabilities | The produced goods |
| Result | Is this supplier reliable? | Does this batch meet specifications? |
| Frequency | Once per supplier (or periodically) | Each order or each production run |
The audit tells you whether you should work with that supplier. The inspection tells you whether the specific order is right.
How much does a factory audit cost?
The cost depends on the scope, factory location, and depth of the evaluation. A standard one-day audit covers the fundamentals: facilities, processes, capacity, and quality control.
In all cases, the cost of an audit is insignificant compared to the risk of committing tens of thousands of dollars with a supplier that can’t deliver.
Conclusion
A factory audit is not an expense, it’s an investment in certainty. It gives you verified information about your supplier’s actual capabilities before your money is on the line. For any significant import, it’s the logical first step.
Need to evaluate a supplier in China, India, or Vietnam? Contact us and we’ll coordinate an on-site audit with a detailed report.