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Glossary

What is a factory audit?

A factory audit is an on-site assessment of a supplier rather than of a product. It checks whether the company is real and legally registered, whether it has the machines, people and quality system to make your order, where work is subcontracted, and how workers are treated. It is best done before a first order.

Types of factory audit

TypeQuestion it answers
Capability or technical auditCan this factory make my product, at my volume, to my standard?
Quality system auditDoes it check incoming materials, work in progress and finished goods, and keep records?
Social compliance auditAre wages, hours, age checks and health and safety acceptable? Schemes such as SMETA and amfori BSCI use approved audit firms.
Environmental auditHow are waste, effluent and chemicals handled, and are permits in place?

Worked example: a brassware supplier

An importer plans a first order of brass planters from a supplier in Moradabad. The audit confirms the GST and Importer Exporter Code registrations and that the address matches. Walking the floor, the auditor finds casting and polishing in house but no plating line, although the quote includes antique-brass plating. The factory names a nearby plating unit. The importer now knows to ask for that unit's details, include plating in the checklist, and plan a during-production inspection after plating rather than relying on the final check.

How Clear To Load audits factories

Our factory audit is a scored capability and quality audit in eight sections, covering process, capacity, quality control and subcontracting among others, with basic social-compliance observations and photographs. It is not a SMETA or amfori BSCI audit; if your retailer needs one, the factory must use an approved firm, and we can tell you which scheme applies. The audit costs US$449 per audit day plus travel by band (see pricing). Gaps found become a corrective action plan for the factory. See factory audits in India and the factory audit checklist.

Frequently asked questions

Is a factory audit the same as an inspection?

No. An inspection checks a batch of products. An audit checks the supplier's ability to make good products repeatedly. A good audit result does not replace inspecting the goods.

How often should a supplier be audited?

Before the first order, then again when volumes, products or ownership change, or when inspections start to fail. Some buyers also repeat audits on a fixed cycle for key suppliers.

Can an audit be unannounced?

Yes. Unannounced or semi-announced audits give a truer picture, but the people you need may not be on site, so the visit can take longer.

Know before it ships

Tell us the product, the factory's city and your ready date. We confirm the inspector, the notice time and the price before you book.

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