How to Evaluate an Indian Factory Before Placing an Order
Sourcing Insights

How to Evaluate an Indian Factory Before Placing an Order

Source India Team · September 25, 2023 · 9 min read

Factory evaluation is one of the most important steps in any sourcing programme. Getting it wrong can lead to quality failures, delivery delays, and reputational risk.

Start with a capability assessment: production capacity, equipment age and maintenance, workforce size and skill level, and product category experience. A factory that excels at men's formal shoes may struggle with children's plush footwear.

Quality systems matter more than factory size. Look for structured QC processes, dedicated quality personnel, testing equipment, and documented procedures. Ask to see their rejection rates and corrective action records.

Compliance and certifications indicate management maturity. Look for ISO 9001, social compliance audit reports (BSCI, Sedex, WRAP), and any category-specific certifications.

Financial stability is often overlooked. A factory under financial stress may cut corners on materials, delay deliveries, or fail mid-production.

Source India conducts factory evaluations as part of our standard process, giving overseas buyers a comprehensive assessment before any commitment is made.