Why Factory Evaluation Matters
Factory evaluation is your primary risk mitigation tool when sourcing from China. A thorough evaluation before placing orders prevents costly quality issues, delivery delays, and relationship breakdowns.
Many sourcing failures stem from inadequate supplier assessment. Taking time to properly evaluate factories is an investment that pays dividends throughout your business relationship.
Factory Evaluation Process
Background Research
Before visiting or contacting a factory, conduct preliminary research to focus your efforts.
What to Research
- Business Registration: Verify legal entity and registration status
- Export History: Check target markets and export volumes
- Certifications: Look for ISO, BSCI, SA8000, etc.
- Reviews and References: Search for client testimonials
- Online Presence: Website, social media, trade profiles
- Production History: Years in operation, brand clients
Red Flags to Watch
Suspicious Signs
- Recently established company
- No verifiable export history
- Claims to make products they don't have equipment for
- Unusually low prices
- Refuses to provide references
Verification Steps
- Check business license number
- Verify through Alibaba Trade Assurance
- Search government databases
- Check import/export records
- Look for legal disputes
Factory Visit Preparation
A successful factory visit requires careful preparation. Arrive with clear objectives and an inspection checklist.
Visit Checklist
- Appointment: Schedule 1-2 weeks in advance
- Interpreter: Arrange if your Mandarin is limited
- Checklist: Prepare facility-specific inspection checklist
- Samples: Bring reference samples for comparison
- Camera: Document conditions (with permission)
- Measurement Tools: Calipers, color guides, etc.
What to Request
- Complete factory tour (not just showroom)
- Meeting with production manager
- Meeting with quality control manager
- Access to production records
- Contact information for current clients (reference check)
Factory Capability Assessment
Production Capacity
- Monthly Capacity: Total pairs per month
- Production Lines: Number of assembly lines
- Current Utilization: Current order load percentage
- Lead Time Capacity: Can they meet your timeline?
Equipment Assessment
| Equipment Type | Purpose | What to Check |
|---|---|---|
| Cutting Machines | Die-cutting uppers | Precision, die inventory |
| Stitching Machines | Sewing operations | Type variety, condition |
| lasting Machines | Forming shoe shape | Automation level |
| Outsole Equipment | Injection/molding | Capacity, mold availability |
| Quality Testing | Testing facilities | Lab equipment, standards |
Quality System Evaluation
A factory's quality system determines the consistency of their output. Evaluate both documented procedures and actual practice.
Quality Documentation to Review
- Quality manual and procedures
- Work instructions for key processes
- Inspection protocols
- Non-conformance procedures
- Corrective action processes
- Equipment calibration records
Factory Certification Checklist
Management
- ISO 9001:2015
- Quality policy displayed
- Management commitment visible
Social Compliance
- BSCI
- Sedex/SMETA
- SA8000
- ICTI
Environmental
- ISO 14001
- Waste management
- Chemical handling
Facility Inspection Checklist
Production Areas
- Clean and organized workstations
- Proper lighting throughout
- Appropriate ventilation
- Safety equipment accessible
- Material storage organized
- Work-in-progress storage proper
Quality Control Areas
- Dedicated QC stations
- Measurement equipment calibrated
- Testing facilities available
- Defect sample boards displayed
- AQL standards posted
Warehouse and Shipping
- Finished goods storage clean
- Packaging materials adequate
- Shipping area accessible
- Inventory management system
Worker Facilities
- Clean cafeteria
- Adequate rest areas
- Proper bathrooms
- Safety equipment provided
Audit Scorecard
Use a standardized scoring system to compare factories objectively.
| Category | Weight | Score (1-5) | Weighted |
|---|---|---|---|
| Production Capacity | 15% | ___ | |
| Equipment Condition | 10% | ___ | |
| Quality Systems | 20% | ___ | |
| Workforce Skills | 10% | ___ | |
| Certifications | 10% | ___ | |
| Facility Condition | 10% | ___ | |
| Communication | 10% | ___ | |
| Financial Stability | 15% | ___ | |
| Total Score | 100% | ___ / 5.0 |
Score 4.0+ = Strong candidate | 3.0-3.9 = Acceptable with monitoring | Below 3.0 = Not recommended
Reference Checks
Always conduct reference checks with current or past clients. This provides insights that factories won't share themselves.
Questions to Ask References
- What products did you have manufactured?
- What was the order quantity and timeline?
- How was communication throughout the process?
- What was the quality like?
- Were there any issues? How were they resolved?
- Would you work with them again?
- What are their strengths and weaknesses?
- Any lessons learned?