How to spot a good Chinese factory: The Biggest Secret of Factory Auditing

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When Paul Midler wrote “Poorly made in China” I ran to the book shop to get a copy. I’d already been living in Asia for 8 years and was looking forward to hearing the trials and tribulations of another gweilo (foreigner) trying to live and work at manufacturing goods in China. I read it in one sitting.

I urge anyone who hasn’t done so yet to read it. It will tell you of all the horror stories that can happen when you don’t get your vendor sourcing right, don’t do your due diligence and don’t audit your potential suppliers. It was a great read.

But I was not happy. Paul had gone and told everyone what to look out for!

Paul had gone and put us all out of business!!

(He hadn’t really, it just fits this article well, adds humor, and trust me, no one can tell you how to get it right in a book, you need to put the hours in, live it and breath it to even start on the path to enlightenment).

But then I realised he hadn’t told us the best kept secret in supplier auditing. The one question that answered all other questions. The key point. And today I am going to tell you that secret.

But before I get to that, if you do find yourself in China and go to visit your potential suppliers, here’s some simple pointers to help spot a “good” factory if you’re new to this…

Is it Tidy and clean? Is it well kept? It doesn’t matter if the buildings are old, it’s about if they are clean and tidy. Is it well lit? Check the worker living area if possible.

Is it Organised? When you walk around are things labeled? Machines, finished goods, work in progress?

Is their Internet information honest? Do the photos on their website match the actual factory? Are they what you expected?

How about Language & communication – when you emailed and set up your visit, did they speak English well? Were your questions answered correctly and in a timely manner? Did they “get it”?

What Experience of foreign business do they have? Ask them about their other clients, look for some proof of their existence – finished goods warehouse is usually a good place to start

All well and good.

“But that’s not what we’re here for!” I hear you cry. “What is the secret he’s going to tell us? How do I start on the path of auditing enlightenment?”

Ask any individual who has been auditing factories for years and they will agree there is one final check. The check that experienced Supply Chain individuals joke about but all know does actually tell us a lot of what we need to know. The thing that will help you spot a good factory. Your impression of this facility will probably match your impression of the whole factory and match your future dealings and relationship with your factory partner.

So, what is this secret? What do I check?

I’ll tell you what you check. You check the Toilet.

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