Before placing a large order, you want to know whether your supplier is real, able to make what you ask for and reliable over time. That is what an audit is for. It is not reserved for large companies: it can be done in four levels, from the simplest to the most complete, stopping when you have the answers you need.
Level 1: the documents
This is the starting point, and it can be done remotely.
- The business licence. It carries an 18-character identification number, the unified social credit code. Ask for a copy and compare the name, address and business scope with what the supplier has told you. China’s public company registry and a tool such as QCC let you cross-check this information.
- Business scope and age. A manufacturer and a trading company do not do the same thing. A very recent company is not necessarily bad, but it has no track record.
- The company name everywhere. It must be identical on the licence, the contract, the proforma invoice and the bank account. Mismatches are expensive.
- Certificates. Ask for the number and the issuing body, then verify with that body. A PDF alone proves nothing.
Level 2: the live video call
A video call with someone from the company lets you ask about the manufacturing process and watch how they react. Ask to see:
- the building with its address, then the workshop, right now;
- the machine that makes your product, running;
- a sheet with today’s date and your name.
A supplier who repeatedly dodges the request should give you pause.
Level 3: samples and references
- Samples that match your specification, not a catalogue. Compare them point by point: material, dimensions, finish, packaging.
- References: other customers, ideally in your country or a comparable market, whom you can contact.
- A small trial order before a large run, when the product allows it.
Level 4: the factory visit
This is the only level that answers “is it a real factory?” with certainty. During a visit, look at:
- The machines and their condition. Are they suited to your product, running, maintained?
- Your product being made, not just a sample on a table.
- Organisation: storage areas, in-process quality control, labelling, cleanliness, safety.
- The workforce: how many people actually work on site, and is that consistent with the stated capacity?
- The address and signage: do they match the licence?
- Real capacity: how much is made on site and how much is subcontracted?
If you cannot travel, a trusted person on site or an independent inspection company can do it for you, with a written report and dated photos.
What an audit does not guarantee
An audit reduces risk, it does not remove it. A well-run factory today may subcontract tomorrow, change materials to cut cost or struggle with a large volume. That is why an audit should be combined with a precise contract, staged payments and an inspection before shipment.
A checklist to print
- Business licence received, name and address cross-checked against a registry.
- Same company name on licence, contract, proforma and bank account.
- Business scope consistent with making your product.
- Certificates verified with the issuing body.
- Live video call done, workshop and machines seen.
- Samples match the specification.
- References contacted.
- Factory visit done, or an independent inspection report received.
- Contract signed, with specifications, lead times, payment terms and pre-shipment inspection.
Going further
Our articles Three checks before paying a Chinese supplier and How to spot a Chinese supplier scam: 7 warning signs complement this one. One of our case studies shows what a factory visit changes, and the FAQ answers other common questions.
Our team is based in Foshan, in the heart of Chinese manufacturing. We check suppliers on site, visit factories, inspect goods before shipment and organise transport: that is our product sourcing service in China. If you want a specific supplier audited, contact us: the first conversation is free.