Factory Audit Checklist: 12 Things I Check Before Signing a Furniture PO

After visiting over 40 furniture factories across Guangdong and Zhejiang, I developed a checklist that saved me from at least three bad deals. Sharing it here because I wish someone had told me this stuff earlier.

Before You Even Book the Flight

Most buyers jump straight to factory visits without doing homework. That is a mistake. Here are the first four items on my list:

1. Business license verification. Check the National Enterprise Credit Information System. Match the registered address to the factory address. If they differ, ask why.
2. Export history. Ask for their last 3 export declarations or bills of lading. A factory that claims 60% export ratio should prove it.
3. Production capacity vs. actual output. A factory with 50 workers cannot realistically produce 300 solid wood dining sets per month. Do the math.
4. Quality certifications. ISO 9001 is baseline. For EU markets you want FSC and EN standards compliance. For US, CARB2 on all panels.

On the Factory Floor

5. Material storage conditions. Wood moisture content should be 8-12% for export furniture. Check if they have a proper drying room and moisture meters on-site.
6. Dust extraction system. A factory without proper dust collection is cutting corners on safety and likely on quality too.
7. Finishing area isolation. Paint and lacquer rooms must be separated from assembly. Cross-contamination ruins finishes.
8. Sample room organization. A well-organized sample room with clear labeling tells you how they manage production orders.

The Business Side

9. Payment terms flexibility. Factories confident in their work usually accept 30/70 (deposit/balance). If they demand 50% upfront, ask why.
10. Warranty and claims process. Get it in writing. How do they handle defects discovered after delivery? What is the response timeline?
11. Current client references. Ask for 2-3 active buyers you can contact. Good factories have nothing to hide. Resources like Furniture Origin can help you compare factory capabilities before visiting.
12. Communication structure. Who is your point of contact during production? A dedicated project manager means fewer misunderstandings than rotating sales staff.

Red Flags I Walk Away From

Three things make me leave immediately:

• Factory refuses to show certain production areas
• No written contracts available in English
• Workers look confused when management walks through — suggests the showroom factory is not the real production site

This checklist is not exhaustive but it covers the 80% that matters. Print it, laminate it, bring it with you.