Factory & Supplier Audits

What is a Factory Audit?

Factory audits are critical for businesses seeking to mitigate supply chain risks, ensure consistent product quality, and maintain compliance with industry standards, regulatory requirements, and contractual obligations.

The primary goal of factory and supplier audits is to help clients verify their suppliers’ capability, reliability, and suitability. These audits thoroughly evaluate the supplier’s infrastructure, processes, workforce competency, and adherence to quality and compliance standards. They serve as valuable tools for identifying potential risks, such as production inefficiencies or non-compliance with industry regulations, allowing businesses to proactively address issues before they affect the supply chain.

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When to Conduct a Supplier Audit?

Factory and Supplier audits are a strategic tool that can be employed at various stages in the supplier relationship, providing insight and control over the supply chain. Pro QC’s audits apply to the following situations:

1. Pre-Contractual Audits

When selecting a new supplier, conducting a factory audit before entering into a contract is a critical step in mitigating potential risks. These audits assess the supplier’s capabilities, production capacity, and quality control systems, providing a clear understanding of whether the supplier can meet your specific requirements. Pre-contractual audits are especially important when entering into long-term agreements or when production will occur in regions with less stringent regulatory oversight.

2. Ongoing Supplier Performance Monitoring

Periodic factory audits allow businesses to continuously monitor supplier performance, ensuring they maintain high levels of quality and compliance throughout the relationship. These audits can be scheduled at regular intervals, such as annually or semi-annually, to ensure the supplier’s processes remain aligned with your evolving needs and industry standards. This is particularly important in industries where compliance standards are frequently updated.

3. Special Circumstances

Factory audits can also be employed in response to specific concerns or events, such as a sudden increase in product defects, compliance violations, or supply chain disruptions. In such cases, a targeted audit can help identify the root cause of the issue and provide recommendations for corrective action. This ensures swift resolution of problems before they affect the overall supply chain.

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Pro QC’s Factory and Supplier Audit Process

A factory audit, conducted by a third party like Pro QC International, provides an independent assessment of a supplier’s operations, systems, and capabilities. This ensures the supplier can meet quality, operational, and regulatory requirements, with a structured process focusing on key performance areas.

Audit Preparation

The audit starts with defining objectives based on the client’s needs, whether quality management, process capabilities, or compliance. An audit checklist is developed using standards like ISO 9001 or client-specific requirements. Pro QC coordinates scheduling with the supplier, ensuring that auditors with the right expertise are assigned.

On-Site Audit Execution

The audit begins with an opening meeting with the supplier’s management team to set expectations. The auditors review documentation (e.g., quality manuals, and compliance certificates), inspect the facility, assess production processes, and evaluate workforce qualifications. They also verify compliance with relevant standards (e.g., ISO, VDA) and identify non-conformities. A closing meeting is held to present preliminary findings.

Post-Audit Reporting

Pro QC provides a comprehensive audit report with detailed findings, non-conformities, and recommendations for improvement. The report includes an overall supplier evaluation score and may include a corrective action plan (CAP) if needed.

Follow-up and Continuous Improvement

If significant non-conformities are found, a follow-up audit may be conducted to verify corrective actions. Pro QC also offers ongoing monitoring to ensure continuous supplier compliance and development, helping maintain supply chain resilience.

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Download Sample Reports

Get in touch with us using the contact form below or visit our sample report page. Our team would be happy to provide a relevant sample report by industry or global audit standard (e.g. ISO 9001).