Factory Audit in China: An Introduction

A factory audit is an on-site evaluation of a factory. The objective of a factory audit is to verify whether a manufacturer is able to make a specific order as per your requirements.

 factory audit in china
TK Wang, Founder & Director @ Epic Sourcing
March 11, 2019

Before you commit to a supplier in China, a factory audit is one of the most valuable steps you can take. This guide explains what a factory audit is, what it covers, and why it matters for UK importers.

What is a Factory Audit?

A factory audit is a systematic on-site assessment of a manufacturer’s capabilities, processes, and compliance. It’s conducted either by your sourcing agent, an independent third-party inspection company, or your own team visiting China.

The goal is to verify that the factory is capable of producing your product to your required quality standards — before you place any orders.

Types of Factory Audits

Capability Audit

Assesses whether the factory has the equipment, skills, and capacity to produce your product. Covers machinery, production processes, workforce, and quality management systems.

Quality Management Audit

Reviews the factory’s quality management processes against standards such as ISO 9001. Assesses how the factory identifies and addresses quality issues.

Social Compliance Audit

Assesses labour practices, working conditions, health and safety, and environmental compliance. Relevant for UK businesses with ethical supply chain commitments or who supply retailers with CSR requirements.

Supplier Verification Audit

Confirms the factory is a genuine, operational manufacturer (not a trading company) and verifies their business registration and export credentials.

What a Factory Audit Covers

A comprehensive factory audit typically assesses:

  • Factory facilities and equipment
  • Production capacity and lead time capabilities
  • Quality control processes and inspection equipment
  • Raw material sourcing and storage
  • Worker skills and training
  • Health, safety, and environmental practices
  • Business registration and certification documentation

How to Arrange a Factory Audit

There are three main options:

  • Via your sourcing agent — The most convenient option if you’re already working with an agent. They conduct the audit as part of their supplier vetting process.
  • Third-party inspection companies — Companies like Bureau Veritas, SGS, and Intertek offer standardised audit services globally.
  • Your own visit to China — The most thorough approach, but requires time and travel investment.

About Epic Sourcing

Epic Sourcing conducts factory audits as part of our supplier vetting process for UK clients. Our team visits manufacturers in person to assess their capabilities before you commit.

Email: hello@epicsourcing.co.uk

07551 136406