How to lower my exposure to risk when sourcing?

Global SourcesUpdated on 2024/05/21

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Learn what procurement sourcing is, the step-by-step sourcing process, and how to build a winning procurement sourcing strategy. Discover how face-to-face supplier discovery at Global Sources Hong Kong Shows helps you find reliable suppliers and reduce risk.
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Surging heavy-sour differentials may elevate costs for petrochemicals, plastics, tires, and construction materials sourced via suppliers in Asia. Chinese refiners eye Iranian or Russian alternatives, risking tighter logistics for electronics housings and automotive parts reliant on oil-derived resins. Importers should monitor Venezuelan tanker defiance (16 post-strike) and US redirection deals, hedging via diversified suppliers in stable regions like the Middle East. Long-term, post-sanctions investment could rebound output to 1.5 to 2 million bpd in the next one or two years, stabilizing markets but delaying normalization.
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Full Question We have to make a 30% down payment to some suppliers in China against orders. How can it be secured and how to guarantee delivery of goods?

Answer The answer to your question has two parts.

How to find the right supplier in the first place, and to ensure that it is a legit seller and not a scam, or an under-performing vendor?
After the order has been placed, how to verify that the goods shipped are up to your quality standards? Video 1: Finding Suppliers Video 2: Evaluating Suppliers
Video 4: Project Management and Quality Control

Video 8: Avoiding Scams
Essential sourcing skills: Supplier Verification

If you only take away one thing from the above resources -make sure you link the supplier’s performance to your payments. In other words, don’t make the final payments until the terms of the contract (quality, delivery, etc.) have been completed. And be sure to verify quality with an independent party before the goods ship out of China.

Source the latest products from verified suppliers on our global sourcing platform, or install our app. Subscribe to our magazines for more in-depth insights and product discovery.

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How to lower my exposure to risk when sourcing?

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