Supplier Verification
Trust is essential for B2B trade, particularly cross-border B2B trade. Buyers should make sure they're working with a reliable provider because they frequently need to place orders costing thousands of dollars. Selecting the right supplier can make or break your company. This means that you must know and trust your supplier before placing an order with them. Diversifying your supply chain has improved aspects of our sourcing process, but there's one step where things have gotten more difficult: how can you verify that a potential vendor is legitimate and trustworthy?
We understand that sourcing raw materials internationally can be a daunting process. The last thing you need is to come out of it with poor-quality materials and an inventory full of counterfeit goods or your money being stolen from you. That's why we verify the legitimacy of individual suppliers' operations through 5 steps:
1. Information validation
The most basic type of information verification is to ensure that the potential client has supplied authentic contact and identification information. Verifying a company's legitimacy uses a wide range of data-points, like legal documents like business registrations and tax info. It also includes checking with industry licensing requirements and scanning for past litigation. Overall, it's a process that has many moving parts, but it's worth it to make sure you stay compliant.
2. Examination of the sales records
One of the most important factors we check is company's sales history. This step involves researching both the company and its main distribution channels to see where they export to, and how is their export process.
3.Production and Research & Development review
Inspection of raw materials and technology is the first step around development. Physical, on-site inspectors are verified and qualified for this stage.
4. Verification of tax compliance
Tax compliance is another way to measure a company's legal standing and trustworthiness. This step checks to make sure there are not too many risks, like reviewing invoices for raw materials and finished products, and input and output gear ratios.
5. Quality control inspection
We make sure quality control inspection is done according to the standard procedure and in accordance with the requirements. In this step, we ensure that the raw materials and finished product meet quality standards. We also review Manufacturer Certificates of Conformity to ensure the highest level of quality.