The Essential Checklist for Factory Audits in China

Conducting a factory audit in China requires a multi-faceted approach covering compliance, capabilities, quality systems, and more. Here’s a detailed, actionable checklist to guide your audit process.

1. Supplier Background and Legitimacy

• Business License & Registration: Verify the authenticity of all legal documents and that the company is properly registered with Chinese authorities.

• Company Information: Confirm the physical address, contact details, and ownership structure.

• References & Client List: Request a list of current clients and references, especially from global brands or long-term customers.

• Previous Audit Reports: Review any audits by third parties (SGS, Intertek, Bureau Veritas) to spot potential red flags.

2. Product & Production Capabilities

• Company Profile & Main Products: Assess the product lines, raw materials used, and their main manufacturing expertise.

• Production Chain Overview: Inspect the organization of the production line, process flow, and operation procedures.

• Capacity Assessment: Check factory size, number of employees, machinery, and confirmed annual output.

• Machinery & Equipment: Review maintenance records and match equipment to your product requirements. Outdated or ill-maintained machines are risk factors.

3. Quality Control Systems

• Certificates & Quality Standards: Validate certifications (ISO 9001, relevant product standards) and their legitimacy.

• Incoming Raw Material Checks: Confirm procedures for verifying supplier-supplied materials are rigorous and documented.

• In-Process Quality Management: Observe real-time inspections, testing stations, and record-keeping of production batches.

• Final Product Inspection: Assess the procedures and criteria for release of finished goods.

• Handling Defects: Examine how non-conforming products are managed and whether there are systems to prevent recurrence.

4. Documentation & Records

• Management Manuals: Review quality management, operational, and safety manuals for completeness and clarity.

• Production & QC Records: Inspect records for past orders, defects, corrective actions, and continuous improvement initiatives.

• Traceability: Ensure materials and products are clearly labeled and traceable through production stages.

5. Compliance with Laws & Regulations

• Labor Law Adherence: Assess compliance with China’s labor laws—minimum wage, working hours, insurance, and worker age.

• Health, Safety & Environment (HSE): Verify presence of appropriate personal protective equipment, clean facilities, emergency exits, and first-aid kits.

• Environmental Compliance: Review waste management, emissions, and evidence of adherence to relevant regulations and standards.

• Social & Ethical Standards: Look for audits or policies related to social responsibility (e.g., SA8000).

6. Employee Conditions & Organization

• Workforce Stability: Request headcount records and employee turnover statistics—high turnover may indicate poor workplace conditions or instability.

• Training & Skills: Verify training records and skills development processes for staff at key positions.

7. Supply Chain & Inventory Management

• Inventory Control: Review systems for managing raw materials, work-in-progress (WIP), and finished goods.

• Shipping & Logistics: Assess the export process, reliability, and volume handled routinely.

8. On-Site Verification

• Physical Condition: Ensure the factory is well maintained: clean, organized, and safe.

• Virtual/On-Site Tour: Conduct a real or virtual walkthrough to verify the accuracy of all documents and claims.

• Independent Third-Party Inspection (if high risk): Consider a professional inspection firm for large or high-stakes orders to validate findings and uncover hidden risks.

Why Use This Checklist?

Following a rigorous factory audit checklist minimizes the risk of poor product quality, shipment delays, and non-compliance with regulations. It builds a foundation for continuous improvement and ensures your supply chain in China is robust and resilient.

Regularly updating and customizing this checklist to fit industry- or product-specific requirements is recommended for optimal results.

If you are looking for a sourcing company in China to perform Factory Audits and assist further in sourcing process , please contact Nexofetch today .