How to vet an overseas supplier: a 7-point due-diligence checklist
Most sourcing failures trace back to a supplier that was never properly qualified. Here is the framework our sourcing leads use before a single purchase order is raised.
A new supplier can look flawless in a catalogue and still sink a program. Before Glacz places volume with any vendor, the factory clears a seven-point qualification. The checklist below is the same one we apply across furniture, electronics, and industrial materials — adapt it to your own category and it will catch most of the problems that surface after the deposit is wired.
1. Legal existence and trading history
Confirm the business is a registered legal entity, not a trading-company front. Ask for the business licence, check the registration number against the local registry, and verify how long they have actually been manufacturing the product you need — not how long the company has existed.
2. Production capacity vs. your volume
A factory running at 95% capacity for an existing client cannot absorb your program without slipping someone’s schedule — possibly yours. Ask for monthly output, current utilisation, and the names (not logos) of comparable buyers they already serve at your volume.
3. Quality systems, not quality claims
Certifications matter, but a current ISO 9001 certificate only proves a system existed on the audit date. Ask to see the actual inspection records, the defect-rate trend over the last six months, and how they handle a failed lot. A vendor who can show you their reject data is a vendor who measures it.
4. Financial stability
Suppliers under cash pressure cut corners on materials and chase deposits. Look for healthy supplier-of-record relationships, reasonable payment terms, and a willingness to accept staged payments tied to milestones rather than demanding the bulk up front.
5. Sub-tier visibility
Your supplier’s suppliers are your risk too. For anything where origin or compliance matters, map at least one tier deeper: where the raw stock comes from, which components are outsourced, and whether any of it touches a sanctioned or high-risk source.
6. Communication discipline
Response time during the quote stage is the best free predictor of behaviour during a crisis. A vendor who takes four days to answer a simple spec question will not suddenly become responsive when a container is stuck at port.
7. A physical or verified-remote audit
Nothing replaces eyes on the floor. Where an on-site visit is not practical, a verified video walkthrough against a fixed checklist — machinery, in-process inventory, finished-goods staging, working conditions — closes most of the gap.
The shortcut that is not a shortcut
The temptation is to skip qualification when a price looks unbeatable. In our experience the unbeatable price and the unqualified supplier are usually the same vendor. Qualify first; negotiate second. If you want this handled end to end, Glacz runs this checklist on every vendor before it ever appears in your sourcing options.