Supplier Selection & Audit Guide for China Manufacturing

Selecting the right supplier is the most critical decision in China sourcing. A poor supplier choice can lead to quality issues, delays, and cost overruns. This guide provides a systematic approach.

Supplier Sourcing Channels

• Online B2B Platforms: Alibaba, Made-in-China, Global Sources — best for initial discovery
• Trade Shows: Canton Fair (Guangzhou), CIIF (Shanghai), DMP (Shenzhen)
• Industry Referrals: Most reliable — ask peers for recommendations
• Sourcing Agents: Third-party inspectors, procurement firms in China

Factory Audit Checklist

1. Facility: Cleanliness, organization, safety signage, fire extinguishers
2. Equipment: Machine inventory, age, maintenance records, brand/value
3. Capabilities: Tolerance capability, material range, max part size
4. Quality System: ISO certificates, inspection equipment, QC process
5. Workforce: Total employees, engineers vs. operators, turnover rate
6. Production Capacity: Current utilization, available capacity, lead times
7. Communication: English proficiency, response time, technical knowledge
8. References: Current clients, export countries, order types

Red Flags

• Refusing a factory visit or providing evasive answers
• Claiming to be ISO certified but no certificate available
• Overpromising capabilities beyond realistic limits
• No in-house quality inspection department
• Unusually low pricing vs. market average (30%+ below)
• Requiring 100% payment before shipment

Audit Scoring System

Common scoring: 0-100 points across categories (facilities 20%, equipment 20%, quality 25%, workforce 15%, management 20%). Score > 80: recommended; 60-80: acceptable with conditions; < 60: reject.