# Factory Capacity Confirmation Letter Template for Chinese Suppliers

> Source: https://netray.co/tools/china-factory-capacity-confirmation-letter-template
> Publisher: Netray (netray.co), AI and integration engineering for ERP and manufacturing systems.
> Section: Free Tools

## Short answer

A fill-in letter that gets a supplier to commit in writing to capacity, lead time, MOQ, tooling, quality terms and subcontracting before you place the first PO.

## Category

supply-chain

## Region

China

## Audience

- Buyer
- Supplier quality
- Sourcing manager
- Program manager

## Tool

**Kind:** template

**Output:** document

**Fields:**

#### Buyer company

**Key:** buyer

**Type:** text

**Default:** Northfield Controls Inc.

#### Supplier company

**Key:** supplier

**Type:** text

**Default:** Dongguan Precision Manufacturing Co., Ltd.

#### Supplier contact

**Key:** contact

**Type:** text

**Default:** Ms. Li, Sales Manager

#### Date

**Key:** date

**Type:** date

**Default:** 2026-10-20

#### Part number and description

**Key:** part

**Type:** text

**Default:** NC-4410 aluminium heat sink, anodized

#### Forecast annual quantity

**Key:** annual_qty

**Type:** text

**Default:** 120,000 pieces

#### Peak monthly quantity

**Key:** peak_qty

**Type:** text

**Default:** 18,000 pieces

#### Required lead time

**Key:** lead_time

**Type:** text

**Default:** 45 days from PO to ready for pickup

#### Response due date

**Key:** response_by

**Type:** date

**Default:** 2026-10-30

#### Incoterm and named place

**Key:** incoterm

**Type:** text

**Default:** FOB Ningbo

#### Processes that may be subcontracted

**Key:** subcontract

**Type:** textarea

**Default:** Anodizing and laser marking. Any other subcontracting requires written approval.

**Blocks:**

#### Capacity Confirmation Request

**Body:** Date: {{date}}
To: {{supplier}}, Attention: {{contact}}
From: {{buyer}}

Subject: Capacity and delivery commitment for {{part}}

We are preparing to award business for the part above and ask you to confirm the information below in writing. Please return the signed letter by {{response_by}}.

#### Volume and Lead Time

**Body:** Forecast annual quantity: {{annual_qty}} (forecast only, not a purchase commitment unless stated in a signed contract).
Peak monthly quantity: {{peak_qty}}.
Required lead time: {{lead_time}}.
Delivery terms: {{incoterm}}.

#### Supplier Confirmation

**Table:**

**Columns:**

- Item
- Supplier response
- Comment

**Rows:**

**0:** Monthly capacity for this part (pieces)

**0:** Capacity that can be reserved for us (pieces per month)

**0:** Utilization of the line today (percent)

**0:** Standard lead time from PO (days)

**0:** Minimum order quantity

**0:** Tooling or fixtures needed and who owns them

**0:** Machines, shifts and operators assigned

**0:** Raw material lead time and stock policy

**0:** Planned shutdowns (holiday periods, maintenance)

**0:** Applicable quality certifications and expiry dates

#### Subcontracting

**Body:** Processes that may be subcontracted: {{subcontract}}

Supplier agrees to name every subcontractor, to flow down our quality and environmental requirements, and to give us access to audit those sites on request.

#### Confirmation Statement

**Body:** We confirm that the information above is accurate and that we have the capacity, equipment, materials and personnel to supply {{part}} to {{buyer}} at the stated volumes and lead time. We will inform {{buyer}} in writing within five working days of any change that may affect supply.

#### Signatures

**Signatures:**

- Supplier authorized signatory and company stamp
- Supplier quality manager
- Buyer representative

**Notes:** This is a commercial starting point, not legal advice. It records the supplier's statements but does not by itself create purchase obligations or remedies. Have counsel review it, and align it with your purchase order terms and any quality agreement. In China a company stamp (chop) is the usual way a company signs, so ask for the stamp as well as a signature.

## Content

**Intro:** Before you award a program to a Chinese factory, you need its volume, lead time and subcontracting commitments in writing. This template turns those questions into a letter the supplier can complete, sign and stamp.

**Sections:**

#### How to use the template

**Body:** Fill in the buyer, supplier, part and volume fields. The letter body is built from them, and the confirmation table is left for the supplier to complete. Export it to PDF or Word, send it with the drawing and forecast, and give a clear response date. Compare the answers with what the sales team told you on the audit, and with the factory's real equipment list. Gaps between the stated and the verifiable capacity are an early warning.

#### What to ask for and why

**Body:** Capacity by part, not by factory, matters most. A factory can be busy but still have room on the one machine type you need, or look empty while the anodizing line it depends on is booked. Ask for reserved capacity, utilization, tooling ownership, material lead times and planned shutdowns such as the Spring Festival and the October holiday. Subcontracting needs its own disclosure because unannounced outsourcing of surface treatment or assembly is a frequent source of quality escapes.

**Bullets:**

- Reserved capacity in pieces per month
- Line utilization and shift pattern
- Material lead time and stock policy
- Named subcontractors and audit access
- Notice period for any change

#### Verification and follow-up

**Body:** A signed letter is a record, not proof. Verify with a site visit or third-party audit, count the machines against the claim, check the production schedule, and run a trial lot at the quoted volume before full award. Put the letter into the supplier file and reference it in your quality agreement. Review it again if your forecast changes significantly or if the supplier reports a change in its own situation.

#### Common mistakes

**Body:** Asking for confirmation only from sales staff, who may not control production planning; accepting a verbal yes; and sending a forecast that is read as a commitment. State clearly that the forecast is non-binding unless a contract says otherwise, and ask the production or operations manager to co-sign.

**Cta:** If you want supplier capacity, lead time and delivery performance compared automatically using your ERP purchasing history, Netray can help set that up privately.

**Faq:**

#### Is a capacity confirmation letter legally binding?

**Answer:** It records the supplier's statements and can be evidence of what was promised, but it does not by itself create purchase obligations or remedies. Binding terms should be in the supply agreement or PO terms, reviewed by counsel.

#### Why ask for the company stamp?

**Answer:** In China the official company stamp (chop) is the usual proof that a document is issued by the company. A signature alone from an employee may not carry the same weight, so request both the signatory and the stamp.

#### How do I check that stated capacity is true?

**Answer:** Visit or commission an audit to count machines, inspect shifts and review order books. Compare cycle times with the claimed output, and run a pilot lot at higher volume. Capacity claims should pass a simple arithmetic check.

#### Should I send the forecast with the letter?

**Answer:** Yes, send a forecast so the supplier can reserve capacity, but label it non-binding unless you have a commitment. Update the forecast regularly and keep the version in the file so you can show what was shared and when.

## Search terms

supplier capacity confirmation letter, factory capacity commitment template, supplier capability confirmation form, China factory commitment letter, capacity confirmation supplier template, supplier readiness letter, lead time commitment letter supplier, supplier capacity agreement

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