What is a factory audit in fashion?
A factory audit is an on-site assessment of a supplier's working conditions, compliance, quality systems or environmental practices.
In short
A factory audit is a structured inspection of a supplier's premises and records to check compliance with labour, health and safety, environmental or quality standards. Fashion brands use audits to onboard new suppliers and to monitor existing ones.
How does it work in practice?
Audits differ by purpose:
- Social compliance audits cover wages, working hours, child and forced labour, freedom of association and health and safety.
- Technical or quality audits assess production capability, quality control and equipment.
- Environmental audits look at chemical management, wastewater and energy.
Auditors review documents, inspect the site and interview workers. Findings are graded and a corrective action plan is agreed with deadlines, followed by verification. Audits may be announced, semi-announced or unannounced, and many brands accept shared audits from industry schemes to reduce duplication.
Why does it matter for fashion businesses?
Audits help brands identify risks before placing orders and provide evidence for human rights and environmental due diligence. Retail partners often ask wholesale suppliers for audit status during onboarding. However, audits have well-known limits: they capture a moment in time, can miss subcontracting and are not a substitute for responsible purchasing practices such as fair prices and realistic lead times.
How is AI changing it?
AI supports audit programmes by prioritising which sites to visit based on risk data, analysing audit reports for recurring issues and detecting inconsistencies in submitted records such as timesheets. Worker voice platforms use language models to categorise anonymous feedback at scale. Human judgement remains central for interviews and remediation.
Common pitfalls
- Treating a pass as proof of no risk.
- Auditing only Tier 1 and missing unauthorised subcontractors.
- Closing corrective actions on paper without verifying changes.
Frequently asked questions
How often should a factory be audited?
Frequency usually depends on risk level and previous results. High-risk sites may be audited more often, while low-risk ones rely on periodic audits combined with ongoing monitoring.
What is the difference between an audit and a certification?
An audit is an assessment at a point in time. A certification confirms that a site or product meets a specific standard and is usually maintained through repeated audits.