Factory Audit Checklist: What to Check Before You Place an Order

A factory audit checklist helps you decide whether a supplier can really deliver your order before you place it. It covers legal status, production capacity, equipment, quality control, working conditions, certificates, subcontracting and traceability, and it ends with a score you can compare across suppliers. You can run an audit on site, remotely by video, or through a third-party company. This guide gives you the checklist and explains when each approach makes sense.

Why audit a supplier at all?

Samples show what a factory can make once. An audit shows whether it can make the same product again and again, on time, at the volume you need. A supplier audit finds weaknesses early: machines that cannot hold your tolerance, a quality team that is only one person, or a plan to subcontract your order to a workshop you have never seen. The cost of finding this out before you place an order is small compared with finding it out after.

An audit does not replace earlier steps such as verifying the supplier before you pay. Do those checks first, then audit the companies on your shortlist.

On-site, remote or third-party audit?

On-site by your own team

You see everything and build a relationship. It costs travel and time, and it works best if your staff know how to assess production for your product type.

Remote audit by video

A live video tour with a prepared question list can confirm the basics at low cost. It is useful for a first screening. It cannot show everything: smells, noise, hidden rooms and worker conditions are hard to judge on screen.

Third-party factory audit

An independent inspection or audit company sends a trained auditor, who reports with photos against a standard checklist. This is a good option when you cannot travel, when the order is large, or when you want an unbiased view. Ask the company which standard it audits against, what the report contains and how auditors are trained. Fees vary, so get quotes from more than one provider.

The factory audit checklist

1. Legal and general information

• Legal name, registration, address and ownership match the documents you hold.
• Years in operation and main products and customers (without breaking confidentiality).
• Number of employees, shifts and organisation chart.
• Relevant licences, such as an export licence or a permit for specific products.

2. Production capacity check

A production capacity check answers a simple question: can this factory produce your quantity by your date without hurting quality? Look at:

• Number and type of machines, and how many are working.
• Output per day or week for similar products, and how much is already booked.
• Number of workers on the relevant line and their experience.
• Lead time for raw materials and whether the factory keeps stock.
• Peak seasons and how they cope with them.

Ask them to explain how they calculated the lead time they promised.

3. Equipment and maintenance

• Machines are clean, labelled and in working order.
• A maintenance schedule exists and is followed.
• Measuring tools and test equipment are calibrated, with records.
• Spare parts are available for critical machines.

4. Quality control process

• Written procedures for incoming materials, in-process checks and final inspection.
• Defined inspection points, sampling plans and acceptance limits.
• A way to handle defective goods: marking, separating, reworking or scrapping.
• Records of defects and corrective actions.
• A dedicated quality team independent from production.

If the factory says it follows a quality management system audit standard, ask to see how it works in practice. Our article on ISO 9001 for manufacturers and buyers explains what such a certificate does and does not mean. For inspection of goods themselves, see the quality control and pre-shipment inspection guide.

5. Working conditions and safety

• Clear fire exits, extinguishers, first aid and safety signs.
• Protective equipment in use where needed.
• No signs of child labour or forced labour, and employees who are free to speak.
• Working hours and wages that follow local law (ask a local adviser what applies).

Many retailers and brands have their own social-compliance rules, so find out what your customers require before you audit.

6. Subcontracting

• Which processes are done in-house and which are outsourced?
• Are subcontractors approved and audited?
• Does the contract require your written consent before subcontracting your order?

7. Traceability and records

• Batch or lot numbers for materials and finished goods.
• Records that let the factory trace a defect back to a material, machine, shift or date.
• Retention of records for a stated period.

8. Storage, packing and shipping

• Clean, dry and organised warehouse; raw material and finished goods separated.
• Packing methods suitable for the shipping route and product.
• Correct labelling and documentation process.

How to score the audit

Scoring turns observations into a decision. A simple method is to rate each section from 0 to 5 and give each a weight that reflects your product. The weights below are illustrative only.

1. Capacity and lead time: weight 25%
2. Quality control: weight 25%
3. Equipment and maintenance: weight 15%
4. Traceability and records: weight 10%
5. Working conditions and safety: weight 15%
6. Packing and shipping: weight 10%

Multiply each rating by its weight, add the results, and set clear rules in advance: for example, approve above a certain score, approve with conditions in a middle band, and reject below it. Any critical failure, such as unsafe conditions or undisclosed subcontracting, should be a reject regardless of the score. For a wider framework, read supplier qualification for B2B buyers.

Preparing for the audit

• Send the factory your agenda and document list in advance, but keep some checks unannounced if possible (for example, which line they show).
• Bring your specification, a sample and a photo checklist.
• Take notes and photos where permitted, and ask the factory for permission first.
• Talk to production staff as well as sales.
• Write the report within a day or two, while the details are fresh.

After the audit

Send the factory a list of findings and ask for a corrective action plan with dates. Agree what must be fixed before the first order and what can be improved over time. Keep the report on file and re-audit after a set period or after a quality problem. Where problems arise later, a written audit is a useful reference.

When to hire a third party

Consider a third-party audit when the order value is high, when the supplier is new, when the product is safety-critical, when you cannot visit, or when your own customer requires an independent report. Choose a provider with experience in your product and country, ask for a sample report, and make sure the auditor has no link to the supplier.

Frequently asked questions

What is a factory audit? It is a structured review of a factory's capacity, quality systems, conditions and records to judge whether it can meet your requirements.

How is a factory audit different from a factory inspection? An audit reviews the factory's systems and capability. A factory inspection of products, such as a pre-shipment inspection, checks a specific batch of goods against your order.

Can I do a remote audit? Yes, as a first screening. Use live video and a detailed question list. For high-value orders, add an on-site or third-party audit.

How long does an audit take? For a small factory it can be a day; for a larger site, longer. Ask your auditor for an estimate.

What if the factory refuses an audit? Ask why. Some have genuine confidentiality rules and can offer alternatives such as a video tour or a third-party auditor. A flat refusal is a risk signal.

Do I need an audit for a small first order? Not always. A video tour, samples and a pilot order may be enough. Increase checks as the order value and your dependence on the supplier grow.

Getting started

Copy the checklist into a spreadsheet, adjust the weights for your product, and use it on your top two suppliers. To find suppliers worth auditing, browse Comilmart's B2B catalog or post a request for quotation. Comilmart connects buyers with verified sellers across Africa, and there are no listing fees to get started. This article is general information; follow the rules and standards that apply to your product and market.