How to vet an overseas supplier: a 10-point checklist

Ask for the supplier's business licence or company registration and check it with the official registry in its country. In China, for example, the business licence carries a unified social credit code that you can look up. Confirm that the registered name, address, and scope of business match what the supplier has told you.

Trading companies are not bad in themselves. They can consolidate products from several factories and handle export paperwork. But you should know which you are dealing with, because it affects price, control over quality, and who is accountable when something goes wrong. Ask directly, compare the registered scope of business with the products offered, and ask for a live video walk-through of the production floor.

Ask how many units of your product the factory makes each month, how many production lines it runs, and what its order book looks like during your planned production window. A factory working at full capacity is more likely to subcontract your order, often without telling you.

A manufacturer that already makes similar products, to a similar quality level, for similar markets, will make fewer mistakes. Ask which countries it exports to and whether it has supplied products that meet South African standards, labelling, and certification requirements.

• Quality management, such as ISO 9001, shows the factory has documented processes. It does not guarantee product quality on its own.
• Product certifications and test reports for your specific product, from accredited laboratories. Check that the report matches your product model, not just a similar one.
• Social compliance audits, such as amfori BSCI or SMETA, matter if you sell to retailers with ethical sourcing requirements.

Request contact details for two or three current export customers, ideally in markets similar to yours. Ask them about consistency between orders, how problems were handled, and whether deadlines were met. How long the company has been trading, and how long its key staff have been there, also tells you a lot.

Order samples from your shortlisted suppliers and test them the way your customers will use the product. Once you have chosen a supplier, approve a final pre-production sample in writing, sometimes called the golden sample. Keep one, and have the factory keep one. Every inspection is then measured against it.

A factory audit verifies what the supplier has told you: that the factory exists, has the equipment and staff it claims, and runs the quality processes it describes. It can be done in person or by an independent inspection company, and it is far cheaper than discovering the truth after a bulk order.

How a supplier communicates before you pay is the best indication of how it will communicate when something goes wrong. Look for clear, specific answers, honest pushback on unrealistic requests, and willingness to share production updates and photographs. Vague answers and constant agreement are warning signs.

• Pay only into a bank account in the supplier's registered company name, and treat any last-minute change of bank details as a red flag until verified by phone.
• Put the specification, quality standard, inspection terms, and lead time in a written purchase order or contract.
• If the product uses your own designs, protect them. In China, a non-disclosure, non-use, and non-circumvention (NNN) agreement under Chinese law is generally more enforceable than a standard NDA.
• Start with a trial order before committing to large volumes.

• Prices far below every other quote, with no clear explanation.
• Refusal to allow a factory visit, video tour, or independent inspection.
• Pressure to pay quickly, or to pay a personal or third-party account.
• Samples that differ noticeably from photographs or from each other.
• Certificates that cannot be verified with the issuing body.

Supplier vetting is the core of our sourcing service. We shortlist manufacturers from our network across Asia, Europe, the United States, and Africa, verify them, manage samples, and stay accountable for quality through to delivery. It is the same process behind our own brands, Soshida and Balvaro.