Supplier Due Diligence in China
When partnering with a Chinese supplier and after selecting the best potential partners, knowing who you’re working with is vital[1]. Therefore, supplier due diligence services are some of our vital China import services to uncover risks and red flags and provide the clarity and transparency you need to make informed decisions. We’ll provide a clear report with all our findings and advice on how to follow up based on our findings and experience.
What problems can our due diligence services help with?
Do you want help with one of the below problems?
- Before placing an order, you have selected one or more suppliers and you want to understand the risks and how to manage them. You may not believe everything they say and publish online. You would like to know how to ensure the quality of the products coming from the factory. A lousy supplier providing low-quality products is the least you need.
- You are already working with a manufacturer and find specific problems or difficulties working with the manufacturer. These can be quality issues, planning issues, communication issues, etc. You want to know what is going on and why these things get wrong, so you can solve the problems and mitigate risks in the future.
- You want someone to represent you and talk directly to the factory’s management or boss because this may solve problems. We can help you challenge the management of the factory to understand the underlying problems and find solutions on how to tackle the problems in future orders.
What do we do?
Depending on your situation, we can find the most suitable plan for you. In general, we take the following steps in our supplier due diligence process and factory visit:
1. Identify past issues
If you already have a history with the supplier. In that case, we investigate previous quality, delivery, and communication issues, allowing us to focus on areas where the problems lie. Many of these problems are typical and happen more often.
2. Collect background information
We verify the supplier’s registration data and business scope to determine their production capabilities and identify any potential risks. In this way, we know better what company we are dealing with.
3. Visit the factory
We make contact with the supplier and visit the company and see all the production processes in the company. We assess their production processes and quality control measures. Finally, evaluate their social and environmental standards and meet with management to discuss any issues and assess their willingness to solve problems.
Our photo- and video materials let you experience the visit like you were there. Often, the physical presence of someone who knows what they’re doing pushes many factories to take a more constructive attitude. We can be your eyes and represent you at any factory in China.
4. Analyse all collected information
We find out what may cause potential problems and risks by analysing the collected information. We can advise on the steps to mitigate these risks and make the right decisions.
What do we deliver
Ultimately, we deliver an extensive and transparent report summarising all the information and data we gathered. In the report, we will outline the company transparently, so you can confidently choose how to proceed.
- Based on background information and registered data, we will draw conclusions from our verification of the company.
- We will describe the company’s production processes and potential risks. We will accompany this with photo and video materials.
- We will describe our findings regarding the factory’s communication and problem-solving attitude and advise how to work and communicate with them.
- We will give you recommendations based on earlier problems, your company goals, and ways that the supplier can help your company reach your goals. It allows you to make well-considered judgements from anywhere in the world.
Benefits of doing your supplier due diligence with us:
- Get transparency and the essential information about the factory, its management and production lines and provide the necessary answers to your doubts.
- We represent you in the factory and are your eyes in the factory.
- You understand the quality risks and can anticipate them.
- We help you judge the factory yourself by providing comprehensive documentation, photo and video material.
- We help you find solutions to problems and make well-considered judgements and decisions.
Do you want to learn more about how our due diligence service can be part of your sourcing solutions to mitigate risks?
Contact us today to take the first step towards ultimate supply chain sourcing results.
