Tips for finding trustworthy suppliers

We would like to help you, by giving you a few tips for finding trustworthy suppliers. When you’re sourcing products from another country, things can get a little complicated. You have to worry about many different things such as shipping times, tariffs, and quality control. One of the most important things you need to consider is whether or not you can trust your foreign supplier. Trusting your suppliers is paramount for a successful business partnership because it implies that you believe their intentions are good and that they will fulfill their obligations on time and in full. Even if you’re just starting out on this process, trust is one of the most important things to look out for when collaborating with an overseas supplier. Here are some helpful tips on how to know if you can trust a foreign supplier.

Check their reputation

Before you enter into any partnership, you should make sure that your prospective partners have a good reputation. You can easily check their reputation by talking to other businesses in your industry, reviewing customer reviews about them, or searching for information about them online. It’s important to know what you’re getting yourself into before you sign a contract. If you don’t do proper background checks, you run the risk of getting scammed by suppliers who will make promises they’re unlikely to keep. Be warned: there are MANY scammers out there. Even sites like Alibaba are full of them. It’s not worth the risk to jump into a partnership without knowing you can trust the other party.

Ask for references

If you’re still unsure about the supplier after you’ve done your research, ask them to provide references. This will help you get a better idea of how well they perform in their day-to-day operations. You can talk to their existing customers and find out more about their level of service. If you’re still uncertain after you’ve spoken with people who’ve worked with them in the past, you might want to look for another supplier. References are helpful in that they give you an idea of what to expect from your prospective partners. By asking for references, you can get a better idea of how the supplier’s business operates. This can help you gauge how well they’re likely to deliver on their promises, as well as how you can expect to be treated as a customer.

Have a contract in place

A contract is something you should have in place before you even start conducting business with a supplier. It’s standard practice to have a contract in place with any supplier you work with, whether you’re in-country or abroad. This helps both parties to better understand their obligations and protects you in case things go sour in the future. Contracts work to your advantage in a few different ways. If your supplier breaches the contract, you have documentation that shows they are in violation of the contract and can use that as leverage to get a better outcome in the situation. They also give you a clear outline of what you expect from your supplier and what they expect from you. We specialise in drafting these types of contracts. Read more about it here. 

Inspect the products before shipment

Another one of our tips for finding trustworthy suppliers, is to inspect the goods that have been produced for quality control, before you sign off on the goods and release payment. This is an important part of the process that you can’t skip out on. It’s important to check the goods before they’re shipped to you because there’s a chance that, once they arrive, you’ll find problems with them. This is especially true if you’re dealing with a new supplier or a supplier you don’t trust completely. By inspecting the goods before they’re shipped to you, you can catch a lot of issues and have them fixed before they become your problems. You can use the sample or a prototype of the goods, as well as the drawings/specifications if available. Checking the delivered goods for quality control helps you avoid any issues with the products, and also helps your supplier improve their production process and quality.

Ask for an MFC (Minimum Future Commitment)

If you’re dealing with a new supplier or one you’re not 100% sure you can trust, you can ask for a minimum future commitment (MFC). This is usually a minimum amount of product that you agree to buy in the future. This is especially helpful if you’re buying a product that has a long shelf life and you can store it until you need it. With an MFC, you can rest assured that you’ll be able to purchase the product you need at a later date, even if your supplier shuts down or goes out of business. This is a great way to help protect yourself from suppliers who might take advantage of you or engage in unethical business practices. It also helps you to plan ahead and know how much inventory you’ll need in the upcoming months or years.

Take your time and have patience

If you’re dealing with a new supplier, it’s likely that you’ll have to do a lot of communicating and negotiating before you finally come to an agreement. This is especially true if you’re sourcing outside of your country. There will likely be a lot of back-and-forth as you try to come to an agreement on things like price, product specifications, and payment terms. Communicate with your prospective partners as much as possible, and be patient with the process. A lot of business deals take a long time to complete, and if you don’t have patience, you could miss out on great opportunities. By taking your time, you’ll be able to find suppliers who work well with you and who you trust completely.

Conclusion

Trust is one of the most important things to look out for when collaborating with an overseas supplier. When you’re sourcing products from a foreign country, you have to worry about many different things such as shipping times, tariffs, and quality control. It’s important to make sure that you can trust your supplier because it implies that you believe their intentions are good and that they will uphold their side of the deal. There are a few things you can do to make sure you can trust a supplier. You can check their reputation, ask for references, have a contract in place, inspect the products before shipment, ask for an MFC, and take your time and have patience with the process. With these tips for finding trustworthy suppliers, you should be safe to do business in the field of imports and exports.