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Basic Due Diligence Steps for Sourcing Products from Abroad!

Discussion in 'Supplier Discussion' started by tantk, Jul 14, 2006.

  1. tantk

    tantk

    Joined:
    Jan 21, 2006
    Messages:
    1,470
    Basic Due Deligence Steps for Sourcing Products from Abroad!

    Below are some procurement recommendations :

    1. Verify the name and address of the company, the manufacturing address, phone number and fax number. Cross-reference this information and the company name against other trade sites to ensure that the information is the same including contact names. Conduct a Google search on the company and their address to figure out if you could find additional information or additional suppliers that supposedly operate under the same contact information.

    2. Refuse to deal with generic e-mail addresses like hotmail or yahoo. Only deal with specific company addresses. If the e-mail address is similar to sales01 or sales02 etc. I would assume that they are a reseller and not a manufacturer. Resellers tend to have offices of people surfing Alibaba etc. all day long trying to contact people. Conduct a whois search on the supplier’s web-address. Verify the information.

    3. Call the supplier at the provided phone number several times and inquire about the company and the person. Ask who is in charge and ask to speak with him. Ask your contact to send along information on the company including maps to their manufacturing site.

    4. Ask for references in the USA or another developed country. Require them to provide a contact name, company name, title, address and phone number. Follow-up with the references in person--not via e-mail. Ensure that they are valid references.

    5. Inform the supplier that you will be visiting their location for a factory tour. Evaluate their response. It is best to hire someone to actually visit the company to verify the company's validity and business operations even if it costs you some money because it is better to minimize risk during the sourcing process. There are a few reputable companies out there that can conduct a background check for you. Contact these companies and buy the reports. It is well worth the money.

    6. When procuring items for new suppliers request payment via L/C instead of T/T. Very few international manufacturers actually accept Paypal or Escrow. If you have placing a very, very large order then you might be able to get them to agree. Never pay the full balance up front.

    7. Pre-shipment inspections are a must for new suppliers. You want to ensure that the goods are of adequate quality before accepting the order. Conducting a statistical sampling of goods is highly recommended. Also, if you are able to coordinate a pre-shipment inspection then you could arrange for payment of the balance upon successful completion of the inspection.

    Notes:

    1. If you are dealing with suppliers that pay brand name goods like Apple iPods, Nokia phones, please don’t expect that these are manufacturers of these products. Brand name goods companies have tight controls over the manufacturing process. If the company is a manufacturer then these are most likely fake or imitation goods. If the company says they are authentic then they are either they are a reseller or possibly fraudulent.
  2. wholesale_gifts

    wholesale_gifts

    Joined:
    Aug 2, 2007
    Messages:
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    I would like to reiterate the origional point. Never, EVER, deal with a large manufacturing company that uses "free" email accounts like hotmail, msn, gmail, etc as a primary point of contact. The chances are they arent who they say they are.
    Cody likes this.
  3. D M

    D M

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    Lot's of chinese companies use hotmail addresses and lots of them are perfectly legit.
    Cody likes this.
  4. wholesale_gifts

    wholesale_gifts

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    Aug 2, 2007
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    Then I suggest these legit chinese companies who use hotmail accounts spend £4 to register a domain name and have proper email addresses. There are several sites I have seen who have a website (ie they also have web hosting) and are using hotmail addresses - thats just stupid!

    One of the first steps I taken when vetting a company is to check that the whois info for the domain matches the contact info displayed on the website.

    Otherwise....I wouldnt touch them with a barge pole.
    Cody and bizmanny like this.
  5. BillyA

    BillyA Retired Moderator

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    Spot on. :niceone:
  6. D M

    D M

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    I disagree. Most people can see past the free email address.
  7. munidragon

    munidragon

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    Aug 28, 2007
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    I agree totally with the whole free e-mail address point and tend to stay away from those suppliers when I can. But I stupidly enough got caught by a big company who did have legit addresses through a major hosting company that I won't name. They were so good that they even had genuine registration papers etc. Just goes to show that you never can be too careful and the best option is to have a third party check them out.
    Cody likes this.
  8. lister

    lister

    Joined:
    Oct 8, 2007
    Messages:
    16
    Another tip that i use is to view source, (right click on your mouse > view source).

    Often you can see is the code has been lifted from another site with the comment tags. I know that this is a simple and NOT totally effective it shows an element of professionalism to ensure that their site is clean and hasnt been lifted from someone else.

    Also, if the site/company you are interested in starts mouthing off about clients and links to them, again, view source. If some of the pages are identically built then that client he links to is a lie and start to question their integrity.

    Best method is to go out there and meet people -
    Cody likes this.
  9. lister

    lister

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    By the way - I was in China recently and i met a big cheese that gave me his business card with a hotmail account and he has turned out to be fine.

    I know that its better to have a yourowndomain.com but i get the impression that the Chinese dont place as much emphasise as this.
  10. jitverify.com

    jitverify.com

    Joined:
    Sep 17, 2007
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    Yes, best way is to meet in person and talk . we can't judge a company only by the email address or some surface things .
    Cody likes this.
  11. MEP

    MEP

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    Oct 17, 2007
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    great article, thank you! :)
    Cody likes this.
  12. cbeebies

    cbeebies

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    Great tips! You are a veteran!

  13. girltalk

    girltalk

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    Thank you for the valuable tips. I have printed them out and placed them by my computer :)
    beatricecc likes this.
  14. hancrafts

    hancrafts

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    As seller and factory from China , I agree to these ideas for all friends for reference . But In fact , many company don't have their own paid address , just like my boss . He believe yahoo is free and good .And many seller use their a mail to work for their company, because it is imposible to open a email for each selling people in a company. so not always obey all careful rule but we should be careful and trust .
  15. hancrafts

    hancrafts

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    And about payment

    " L/C is going to charge me around 3%. if i sell $10000 that is going to cost me $300. that is a lot. "

    Quote:
    Originally Posted by JGClifton ***********************************************************************
    3% really isn't that bad. Something worth looking at too:

    **************************************



    Yes , It is secure to make sure to get your money or goods .
    But fro small order , just forget it , you just chat and talk will know if they doing real business. So I use T/t get money and send goods to my customer. That is good too. :dance:
  16. hancrafts

    hancrafts

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    Jan 13, 2008
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    Yes , You experienced it and know the truth. so our Chairman Mao is really right. " Practice make truth " he said these words about 35 years agooooooooooooo!!!:cool::p
  17. sarahtc

    sarahtc

    Joined:
    Feb 20, 2008
    Messages:
    1
    Disagreed with point 2.
    some manfacturers in China admeasure salesmans using e-mail address similar as sales01,sales02. quite a lot suppliers using free e-mail address.
  18. Dawsons

    Dawsons

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    Jan 11, 2008
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    233
    I think some legit suppliers will use free emails ,I just think you should always get samples for a low cost or see if you can get a free one and build it from there. some of the points however are very good .
    Good thread.
  19. Kusi

    Kusi

    Joined:
    Mar 31, 2008
    Messages:
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    A supplier, or any business oriented person should know that in order to attract customers, it's best to have a business type email address. It's just a matter of professionlism. A yahoo email address just shows the company they work for is cheap. I would stay away from this kind of supplier unless we met face to face.
  20. digimedia0704

    digimedia0704

    Joined:
    Mar 18, 2008
    Messages:
    1
    Watch suppliers abroad

    Hi There,

    I am looking for branded watch suppliers abroad. The sort of brands i am looking for are Police/DKNY/Calvin Klein/Casio and more. I understand that the US is a good option to expolre with the dollar rate so low.

    Can anyone give me tips how to begin or better still some useful contacts.

    Many thanks
    Dave

    ps. can someone tell me how to make a new post instead of post reply (i'm new!).
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