A factory audit in India is a visit to the plant to check that the supplier is real, can make what you want at your volume and will keep quality steady. Which kind of audit you need depends on your risk: a new supplier needs a capability audit, a regular supplier a quality-system audit, and a retail customer may demand a social compliance audit.
This article helps you choose and read an audit. For the contents of the report itself, see what a factory audit report should contain.
Three kinds of audit, three different questions
- Capability audit: does this supplier own the plant, have the machines, staff and capacity for the order, and make this product already?
- Quality-system audit: does it control incoming materials, in-process checks, testing, traceability and corrective action, or does quality depend on one supervisor?
- Social compliance audit: working hours, wages, safety, child labour and the like, usually demanded by large retail customers. See BSCI, SMETA and WRAP audits for the garment versions.
Who should do it
The auditor should work for you, not for the factory, and should have audited this product before. A generic auditor who has never seen a spice dehydrator or a kiln will tick boxes but miss what matters. Announced audits are useful for systems and paperwork; unannounced visits show what normal days look like. Many buyers use both.
Remote audits by video can confirm who owns the plant at a basic level, but they cannot show smell, dust, storage or the state of the floor. Treat them as a screening step only.
Questions to ask the auditor, and the factory
- Who owns the site, and is that company the one on the export documents?
- Which machines and lines are used for my product, and what share of capacity is already booked?
- How are raw materials checked on arrival, and where are the records kept?
- Who in the plant can stop a lot from shipping, and has anyone done so in the last year?
- How is each lot identified, so a complaint can be traced to a date, a shift and a material batch?
- Where are finished goods kept, and how are they protected from damp, pests and mix-ups?
- What does the factory do when a customer complaint arrives? Ask to see the last one.
Red flags during an audit
- The visit is steered away from some buildings or lines.
- The machines shown do not match the product sample.
- Everything looks new, clean and idle, as if prepared for visitors.
- Records exist only on request, and look freshly written.
- Staff cannot answer basic questions and defer everything to one owner.
- A different company name appears on the gate, the invoice or the registration documents.
Turning the audit into a decision
Ask for a clear verdict in three parts: ready to order, fix these items first, or avoid. A list of findings without a verdict leaves the decision to you without the means to make it. Agree what must be fixed and by when, and re-check the critical items before the order starts. An audit is a snapshot, so repeat it yearly and after any complaint. Our guide to agent audits of an existing supplier covers the case where you already buy from the factory.
How often and how deep
Match the depth of the audit to the size of the risk. For a small trial order, a short capability visit is enough to confirm that the supplier exists, owns the plant and can make the product. For a large or recurring order, ask for a full audit with scoring, photos and a corrective action list, and repeat it yearly.
After any serious complaint, or when the supplier changes owner, site or main process, repeat the audit sooner. Suppliers change faster than the reports about them, and an audit two years old describes a factory that may no longer exist in that form.
How we work
We audit factories on site with our own staff, announced or unannounced as you prefer, and give you a scored report with photos, video links and a go, fix or avoid verdict. We arrange audits where the supplier is, across India. Fees are agreed in writing in advance. To start, book a free sourcing review or read about our services.