How can I verify that a China supplier is legitimate and that they can deliver the quality products I need?

Global SourcesUpdated on 2024/05/21

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Full Question Hi I would like to know more about a company. EchoXX technology. I want to know who are the owners and the sales people. In the past, with another company, I had an issue where a reputable companies sales person's identity was stolen and they contacted me for doing business. I got cheated. This time, I want to do my due diligence to do some checking: name, company, business address etc. If you can help me with this I would appreciate it.

Answer I would like to offer two options, you may elect to do one or the other, but doing both would not only verify that the supplier is a legit business, but also confirm they can meet the quality level you desire.

Type 1 "Operational Due Diligence"

An investigation of a business prior to signing a contract to ensure the company (supplier) signing the contract is who they say they are. For example, do they really have 1000 employees, 50 million USD exports, own the factory 100%, have happy customers, good financial situation (will not close doors suddenly) and so on.

Type 2 "Quality Audit/ Factory Audit"

This service is designed to ensure the supplier has the equipment and experience to make a given product.

Audits can be conducted by the buyer, but usually third party experts are hired to do the audit as it is a specialized skill. You wouldn’t ask your sales team to do engineering for example.

In my opinion, doing the due diligence AND quality audit is an essential step when sourcing from China. Perhaps I am jaded after 12 years living here, but I assume the worst unless proven otherwise. Trust BUT verify.

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