Bureau Veritas factory audit
You come across a Chinese supplier online. The organization looks all right. There's potential for a business opportunity that could really take off. BUT there are many scams, fakes, and just plain bad suppliers out there to watch out for. So how do you make sure you're doing business with a legitimate supplier who you can trust?
When you're verifying a potential supplier you are essentially looking at firstly, Is the company a legitimate business with good reputation and not a scam or business on the verge of bankruptcy?
We offers simple and effective strategies to answer, let's get started.
1. Use Google & B2B directories,Open Google search "[company name] + scam", "[company name] + dishonest", and a few variations
While searching the supplier's company name, you will find several B2B directories, including Alibaba,Made-in-China, Global Sources,etc
many B2B offer verification services such as this one provided by Made-in-China, It checks important data of suppliers such as the start date, number of staff in each department, factory ownership, amount of sales, etc
you might also come across information such as whether a supplier has participated in trade shows recently, which is a good sign. Renting a booth and attending trade shows can be seen as an investment in gaining new customers..
2. Make a phone call,In order to avoid being traced by law enforcement authorities, most scammers do not provide genuine registration information online. For example, they will provide a false company address, telephone number and fax number, or persuade buyers to contact them by mobile phone only.
3. Check business license,Legal companies in China have to register with the Chinese government authorities and obtain a unique company registration number. If your supplier is unable to provide you a unique company registration number, it's risky to continue dealing with them
4. Ask for references,To check up on the supplier's track record in producing top-quality items, ask for their previous customers for reference
5. Get a sample,Even if you have to pay for it. We're trying to rule out as many points of doubt and areas of ambiguities as we can. When you have a sample in your hands, you can check the quality to ensure the product is exactly what you are looking for.
7. Conduct factory audits (or at least pretend to),Tell potential suppliers that you'll have their factory audited before any Purchase Order is issued, and later their production inspected before any shipment is authorized. If the supplier refuses or looks flaky, it's a red flag!
8. Make good use of databases,Search through this database http://shixin.court.gov.cn/ of the Chinese Supreme Court. Type in the Chinese name of your supplier and see if you find it there. You will be able to find out if they have been given a sentence and if they failed to pay damages.
9. Background checks, You can order a report from third party authentication services such as BureauVeritas , where their business credit report service will provide information on your potential supplier, including legal representatives, shareholders, business scope, financial records
10. Visit the company or factory in person,This is the best way to verify your suppliers – you can't know much about an organization unless you visit it. You can also discuss your products, prices, quality inspection, and delivery time face to face.