Factory Audit(FA) checks whether the potential supplier/ factory is reliable and suitable before placing orders.
A factory audit is a comprehensive inspection conducted by clients or third-party agencies to evaluate a manufacturer’s production facilities, processes, and management systems. The goal is to ensure compliance with quality, social, environmental, and safety standards before establishing a business partnership.
Key Processes of Factory Audit:
1.Pre-Audit Preparation
Review client requirements (e.g., quality, safety standards).
Conduct internal self-assessment .
Prepare necessary documents (e.g., licenses, production reports).
2.On-Site Inspection
Document Review: Verify certifications, policies, and records.
Facility Tour: Inspect production lines, warehouses, and worker conditions.
3.Audit Report & Corrective Actions
Auditor provides a report highlighting non-conformities.
4.Factory submits a Corrective Action Plan (CAP) and implements improvements.
Follow-up audits may be required for verification.
The following aspects are covered:
Factory Overview
Management
Production capability
Quality Assurance System
Production Process Management
R & D Capacity
Lab Testing Capabilities
Certification & Photos
Other Points from customer
Benefits of Factory Audit for Clients Risk Mitigation
Ensures suppliers meet legal and ethical standards, reducing risks like unsafe practices.
Quality Assurance
Verifies production capabilities and consistency, minimizing defects and delays.
Supply Chain Transparency
Builds trust by confirming fair wages, safe workplaces, and environmental compliance.
Brand Protection
Prevents damage from association with unethical suppliers.
Long-Term Cost Savings
Reduces rework, disputes, and sudden supplier replacements.
