Sourcing glossary
Factory audit
Also known as: Supplier audit, Manufacturing audit, 验厂, 공장 심사, 공장 실사
An on-site assessment of a supplier's legal status, facilities, production capacity, quality system and sometimes social compliance, done before placing orders or periodically.
An audit answers "can this supplier make my product reliably?", while an inspection answers "is this batch good?". A basic audit confirms the business licence and address, that the site really is a factory producing your product category, machine and staff numbers, quality control steps and export experience. Social audits (working hours, safety, wages) are often required by large retailers.
It is especially useful before a first large order or when a supplier claims to be a factory on a B2B platform. See factory vs trading company.
Related terms
Guides that use this term
Platforms
How to Verify an Alibaba Supplier Before You Pay
Check an Alibaba.com supplier step by step: what Verified and Gold Supplier badges mean, business license lookups, factory vs trader signals and red flags.
Updated 2026-09-15 · 5 min read
Suppliers
Factory vs Trading Company in China: How to Tell and Which to Use
How to tell a real Chinese factory from a trading company using the business license scope, capital records and audits, plus when a trader is the smarter choice.
Updated 2026-09-02 · 7 min read
Part of Finding Suppliers.