Global Sourcing · 10 min read

Factory Audits and Supplier Verification

A factory audit tests whether a supplier is real, capable and controlled enough for your product. It should verify legal identity, facilities, capacity, quality systems, subcontracting and the evidence behind sales claims.

Written by Rajan Mehta

Identity and commercial checks

Match the legal entity on licences, bank details, quotations and contracts. Review ownership, operating history, export experience and financial warning signs.

Capability and capacity

Inspect the machinery, tooling, production flow, technical team and maintenance records relevant to your product. Confirm which processes are performed in-house and which are subcontracted.

Quality-system evidence

Look for approved specifications, incoming inspection, in-process controls, calibration, non-conformance records, traceability and corrective actions. A certificate is useful only when the working system supports it.

Turn findings into a decision

Classify findings by risk, agree corrective actions with dates and identify what must be closed before an order. An audit does not guarantee performance; it improves the quality of the sourcing decision.

Frequently asked questions

When should a factory audit be conducted?

Before a significant first order, after material capability changes, and periodically where product, compliance or continuity risk justifies it.

Is a sample enough to verify a manufacturer?

No. A good sample shows product potential but not necessarily legal identity, repeatable capacity, quality systems or undisclosed subcontracting.

Key takeaway

Strong products come from clear specifications, realistic economics and disciplined supplier execution—not from chasing the lowest quotation.