How to check a supplier before purchasing

Verification checklist

1. Confirm the legal entity. Check registration details, bank details and the party issuing the invoice.
2. Clarify the counterparty's role. A manufacturer, authorized dealer or trading company must provide evidence of its authority.
3. Compare the product with the specification. Check the model, included components, mandatory characteristics and acceptable supporting documents.
4. Document the terms. Price, currency, production lead time, packaging, warranty, payment stages and responsibilities should be set out in writing.
5. Calculate the full delivery journey. Transport, clearance, insurance, schedule contingency and acceptance affect the actual cost and delivery time.

Common mistakes

• comparing offers with different included components;
• treating a catalog or correspondence as proof of compliance;
• paying before checking the contracting party and bank details;
• overlooking the time needed to prepare documents and packaging;
• counting only the product price, excluding costs to the delivery location.