Top 10 questions to ask an international supplier
Finding suppliers can be overwhelming, especially if you are spoilt for choice.
Your initial meeting or correspondence with a potential international supplier must tell you whether they are a viable option for your import business or not, so you don’t waste time perusing a fruitless business relationship. For this reason it’s important to be armed with specific questions so that you can easily assess each supplier and compare your findings. Here are the top 10 questions you should ask any potential international supplier:
1. Quantity
What is the minimum quantity I can order, and what would the price be for that quantity be? Can you supply the quantities I require on a regular basis or is the product seasonal?
2. Price
What is your best price per unit? Usually this will be based on order quantity. Make sure you are talking to someone within the international supplier’s company who has the authority to negotiate.
3. Payment terms
What are your payment terms, and are they negotiable? A common international standard is 30% up front and 70% when the order ships.
4. Lead time
How long will it take from the time I place my order until the goods are delivered to the port of export, ready for shipping?
5. References
How long have you been exporting to my country? Do you have existing customers I can contact for references?
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6. Quality control
What quality control procedures do you use? Can I do my own quality control during production and prior to shipment?
Inspecting the shipment would require contacting a 3rd party to do a pre-shipment inspection either at the suppliers premises or at the port of export. Alternatively, if the international supplier will let you, you arrange to go there yourself.
7. Export license
Do you have the necessary regulatory approval and licenses to export this product to my country?
8. Updates
Do you provide regular updates on production progress? Am I or my representatives able to visit the factory during production?
9. Guarantees
What guarantees do you offer and what happens if my product is not up to the standard we agreed on? What happens if I decide to cancel my order?
10. Contacts
Who is the main contact I would be dealing with if I place my order? Do they speak English? Do they have the authority to speak on your company’s behalf? Is it possible to meet them in person or via a video call?
Your chances of finding the right supplier immediately are slim, so make a point of meeting and contacting as many as possible. Not only will it give you a good idea of what is on offer, but you will also be able to compare answers. If you get similar responses, you can assume that this is the way things are done in that part of the world, or within a particular industry.
For more information consult our How to Evaluate a Supplier manual.
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