Factory Capacity Confirmation Letter Template for Chinese Suppliers
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.
Fill in
China Factory Capacity Confirmation Letter Template
Capacity Confirmation Request
Date: 2026-10-20 To: Dongguan Precision Manufacturing Co., Ltd., Attention: Ms. Li, Sales Manager From: Northfield Controls Inc.
Subject: Capacity and delivery commitment for NC-4410 aluminium heat sink, anodized
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 2026-10-30.
Volume and Lead Time
Forecast annual quantity: 120,000 pieces (forecast only, not a purchase commitment unless stated in a signed contract). Peak monthly quantity: 18,000 pieces. Required lead time: 45 days from PO to ready for pickup. Delivery terms: FOB Ningbo.
Supplier Confirmation
| Item | Supplier response | Comment |
|---|---|---|
| Monthly capacity for this part (pieces) | ||
| Capacity that can be reserved for us (pieces per month) | ||
| Utilization of the line today (percent) | ||
| Standard lead time from PO (days) | ||
| Minimum order quantity | ||
| Tooling or fixtures needed and who owns them | ||
| Machines, shifts and operators assigned | ||
| Raw material lead time and stock policy | ||
| Planned shutdowns (holiday periods, maintenance) | ||
| Applicable quality certifications and expiry dates |
Subcontracting
Processes that may be subcontracted: Anodizing and laser marking. Any other subcontracting requires written approval.
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
We confirm that the information above is accurate and that we have the capacity, equipment, materials and personnel to supply NC-4410 aluminium heat sink, anodized to Northfield Controls Inc. at the stated volumes and lead time. We will inform Northfield Controls Inc. in writing within five working days of any change that may affect supply.
Signatures
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.
Supplier performance from ERP data
Want on-time delivery and lead time actuals compared with what suppliers promised? Request an optional walkthrough.
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How to use the template
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
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.
- 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
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
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.
Frequently Asked Questions
Is a capacity confirmation letter legally binding?
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?
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?
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?
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.
If you want supplier capacity, lead time and delivery performance compared automatically using your ERP purchasing history, Netray can help set that up privately.
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