Shenzhen Supplier Audit: Uncovering a "Factory" with No Manufacturing Capacity
Electronics Manufacturer (Russia)
«A supplier in Shenzhen positions itself as an OEM factory producing IP67 connectors. Pricing was 35% below market, MOQ was flexible, and ISO 9001 arrived by email within two days. The situation felt too good to be true. Before signing a $340K contract, an independent verification was required.»
Business License Verification and Cross-Check Across 8 Registries
Verified the Unified Social Credit Code in 8 registries. Findings: the company was registered as a trading firm, not a manufacturer. Registered capital: 100K RMB — 50× below the typical level. Owner: 6 other companies, 2 on the debtor blacklist.
Unannounced Site Visit
Conducted a surprise audit on a regular workday. The "production floor" turned out to be a 200 m² rented office with 12 employees. Equipment: 2 benchtop presses. Actual capacity: ~500 pcs/month instead of the claimed 50K.
Subcontractor Chain Analysis via Documentation
Requested COC, material test reports, and 6 months of batch records. Identified 3 different barcode printers, 7 packaging formats, and mismatched batch numbers. Direct evidence of resale from at least 3 sub-suppliers.
«In 11 days we saved $340K and six months of dealing with an unreliable supplier. The report was so detailed that we used it as a checklist for vetting four more potential partners.»
