Factory Audit vs. Pre-Shipment Inspection: What Does Each Check?

# Factory Audit vs. Pre-Shipment Inspection: What Does Each Check? Before placing a substantial order with a new supplier, buyers often ask whether they need a factory audit or a pre-shipment inspection. These services address different questions: one focuses on a supplier's facility and selected processes; the other checks goods from a particular order. ## What is a factory audit? A factory audit assesses a supplier's facility, operations and selected management processes within an agreed scope. It may review whether the site matches stated capabilities, whether relevant equipment and production steps are present, how materials and work-in-progress are controlled, and how quality records or corrective actions are managed. An audit is a time-bounded assessment. It does not guarantee future performance or prove that every product in a later shipment will meet your specifications. The report should state what was reviewed, what was outside scope and any limitations. ## What is a pre-shipment inspection? A pre-shipment inspection (PSI) checks finished goods from a specific production batch before dispatch. Depending on the brief, it may review product identity, quantities, workmanship, dimensions, function, labels, packaging and shipping marks against agreed sampling and acceptance rules. PSI describes the sample and checks observed on the inspection date. It does not guarantee that every unit is defect-free or replace specialized laboratory tests and compliance assessments. ## The key difference - **Factory audit:** evaluates supplier capability and selected processes; usually used during supplier qualification or review. - **Pre-shipment inspection:** evaluates a specific finished order; usually scheduled after production is substantially complete and before dispatch. - **Audit evidence:** site observations, process records and findings. - **PSI evidence:** sample checks, measurements, defect records and photographs. - **Audit limitation:** cannot guarantee future order quality. - **PSI limitation:** does not establish long-term factory capability. ## When should you use a factory audit? Consider an audit when qualifying an unfamiliar supplier, when production capability is difficult to assess remotely, or when you need to understand a facility's processes before committing to repeat business. Define the objective first. A focused scope is more useful than a generic request to “check everything.” Ask for a report that distinguishes direct observations from supplier statements, identifies documents reviewed, records the site and date, and notes inaccessible areas or excluded topics. If a certification or legal requirement matters, verify it with the issuing body or a qualified specialist; do not assume a general audit covers it. ## When should you use a PSI? Use a PSI when you need evidence about a particular production batch before it leaves the supplier. It is especially useful when specifications, appearance, variants, packaging or labeling must match buyer-approved references. Provide the inspector with the purchase order, approved sample, product specifications, packaging files and acceptance criteria. Schedule the visit when the batch is ready and leave time for corrective work if issues are found. ## A practical sequence for a new supplier 1. Define product specifications, capability needs, quality expectations and applicable compliance requirements. 2. Screen the supplier and confirm its identity, facility details and role as manufacturer, trading company or intermediary. 3. Commission a scoped audit when facility or process evidence is important to the buying decision. 4. Approve a sample and written specification before bulk production. 5. Agree how changes, delays and defects will be communicated and approved. 6. Inspect the finished batch using the agreed references and acceptance criteria. 7. Document corrective action and record who approved shipment release. ## One service does not replace the other An audit cannot confirm that a finished batch has the correct logo, quantity or packaging. A PSI cannot tell you whether a supplier has stable processes or is suitable for future orders. Buyers may need both at different stages; smaller or lower-risk orders may need a different level of review. Choose the scope based on product complexity, order value, supplier history and the consequences of failure. ## Frequently asked questions ### Should I audit a supplier before ordering samples? It depends on the risk and the purpose of the sample. For an early low-volume sample, a full audit may not be proportionate. For a strategic product or supplier with limited verifiable information, a scoped review may help before a larger commitment. ### Can a supplier's own quality report replace an independent PSI? An internal report can be useful, but may not provide independent verification. Agree who performs the checks, which criteria they use and how findings are documented. ### How often should a factory be audited? There is no universal interval. Review frequency may depend on supplier risk, facility or process changes, performance history, product requirements and your own quality program. ## Build the right control plan for your order IHRACHANE supports supplier verification, factory audits, production monitoring, pre-shipment inspections and freight coordination. [Explore sourcing and quality services](https://www.ihrachane.com/services) or [discuss your supplier and order requirements](https://www.ihrachane.com/sourcing#contact).