What Is a Factory & Supplier Audit?
A Factory Audit (also called a Supplier Audit or Manufacturing Assessment) is a comprehensive on-site evaluation of a manufacturing facility's capabilities, systems, and practices. Unlike product inspections that focus on the output, an audit examines the supplier's ability to consistently produce goods that meet quality, safety, and compliance requirements over time.
Audits are used at multiple stages of the supplier relationship: before qualifying a new supplier (initial audit), during an ongoing relationship (periodic monitoring audit), or in response to quality issues (corrective action audit). They provide buyers with an objective, evidence-based assessment of whether a supplier is a reliable long-term partner.
Types of Factory & Supplier Audits
- Capability & Quality Audit — Evaluates the factory's production equipment, quality management system (QMS), inspection processes, testing capabilities, and overall manufacturing competency. Typically scored against a structured checklist covering organisation, facilities, process control, quality control, and material management.
- Social Compliance Audit — Assesses the factory's labour practices, working conditions, health and safety standards, and environmental compliance. Common frameworks include SMETA (Sedex), BSCI (amfori), SA8000, and WRAP. These audits verify that suppliers operate ethically and in compliance with local and international labour laws.
- Environmental Audit — Evaluates the factory's environmental management practices, waste handling, emissions, water usage, chemical storage, and compliance with environmental regulations. Increasingly required by buyers with sustainability commitments.
- C-TPAT / Security Audit — Focused on supply chain security, verifying that the factory has adequate measures to prevent unauthorized access, tampering, or contamination of goods. Required for US importers participating in the C-TPAT programme.
- GMP / Regulatory Audit — For food, pharmaceutical, cosmetic, and medical device manufacturers, verifying compliance with Good Manufacturing Practice (GMP) regulations and relevant industry standards (FDA, ISO 22000, ISO 13485).
What Does a Typical Factory Audit Cover?
- Company profile and organisation — Ownership structure, management team, years in business, number of employees, key clients, and certifications held.
- Production facilities and equipment — Factory floor area, production lines, machinery condition and calibration, maintenance schedules, and production capacity.
- Quality management system — QMS documentation, quality manual, SOPs, incoming material inspection, in-process quality control, final inspection procedures, and quality records.
- Testing and inspection capabilities — In-house testing equipment, calibration records, testing procedures, and access to third-party testing laboratories.
- Material management — Raw material sourcing, incoming inspection, storage conditions, traceability, and handling of non-conforming materials.
- Workforce and training — Worker skill levels, training programmes, operator qualifications, and supervision ratios.
- Health, safety, and environment — Fire safety, emergency procedures, personal protective equipment, chemical handling, waste management, and housekeeping.
Audit Reporting
Audit reports are typically delivered within 48–72 hours and include a scored assessment against each audit category, an overall rating (e.g. Approved, Conditionally Approved, Not Approved), detailed findings with photographic evidence, and recommendations for improvement. The report gives buyers a clear picture of the supplier's strengths and weaknesses.
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Frequently Asked Questions
An on-site assessment of a manufacturer's capability, quality systems, processes, and legitimacy — done before you commit, to confirm they can actually make your product to standard.
An inspection checks the goods; an audit checks the supplier — their systems, equipment, and practices. Inspections are per-order; audits are usually once per supplier or periodic.
A general capability/quality audit, plus specific ones: Capability & Quality, Social Compliance, Environmental, and C-TPAT / Security.
Before placing a first order with a new factory, and periodically for ongoing suppliers or whenever quality starts to drift.
It's priced per man-day; scope — which audit, and factory size — affects the figure. See our cost guide.