What is a factory audit? Types and what they check
A factory audit tells you whether a supplier can make your product reliably before you pay for it.
Definition
Factory auditA factory audit is an on-site assessment of a manufacturer, carried out by the buyer or a third party, to verify that the supplier exists, has the capability and capacity it claims, and meets agreed standards. Common types are capability or technical audits, quality management audits and social compliance audits covering labour, health and safety.
How brand owners use factory audits
The first audit is often basic verification: is this a factory or a trading company, does it own the equipment it shows in photos, do the business licence and address match, and does it actually make the product category you are buying. Many sourcing problems start with a supplier that subcontracts the work to a factory you have never seen. Ask for the audit to cover the exact site that will make your goods, and repeat the check if production moves to another building.
A capability audit goes further: production lines and capacity, incoming material checks, in-process controls, testing equipment, traceability of batches and how complaints are handled. A social audit looks at working hours, wages, age verification, fire safety and dormitories. Large retailers often require social audits under a specific scheme, so ask your buyer which one before commissioning anything.
Use the report, not just the score. Note the issues that matter for your product, agree corrective actions with dates, and check them on the next visit or during inspection. An audit is a snapshot of one day; it does not replace pre-shipment inspection or testing of the goods.
Supplier search and audits are part of manufacturing support. The guide how to choose a manufacturer lists the checks to do before the first order, and contract manufacturing explains the model.
Related terms
AQL
The worst defect rate a sampling inspection will treat as acceptable for a production lot.
Golden sample
The approved reference unit that mass production and inspections are compared against.
Contract manufacturing
Outsourcing production to another company that makes the product for you under a contract.
OEM
A factory produces goods to the buyer’s own design and specification, under the buyer’s brand.
Frequently asked questions
What is the difference between a factory audit and an inspection?
An audit assesses the factory: its systems, capability and conditions. An inspection checks a specific batch of your products against the specification before shipment.
Can I rely on a factory’s existing audit report?
It can be a useful start if it is recent, from a recognised scheme and covers the actual site making your product. Verify the site address and date, and consider your own audit for key suppliers.
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