Supplier Credibility Evaluation

Guarantee Your China Supplier Is Credible

It can be hard to guarantee that your choice in a China supplier is credible, and the last thing you want is to make a large volume order with a supplier that is going to overcharge and under-deliver. Hifida are the experts at supplier credibility evaluation, and we can make sure that your chosen supplier is one that you can trust.
Our team performs a deep-dive into your supplier, performing due diligence research (including seeing how long a supplier has been in business and how they compare to competitors), and conducting on-site factory visits to guarantee supplier quality.

Supplier Credibility Evaluation Process

Supplier Due Diligence

Our due diligence research is extensive, providing a clear, transparent view of your chosen supplier. Hifida’s due diligence research includes:

• Where the supplier is located, and what other suppliers in the same area specialize in
• How long they’ve been in business
• What markets the supplier has sold in
• Staff size, composition, and general communication skills
• Production capacity
• How the supplier compares to competitors
• Quality control systems in place

Competitor and Industry Analysis

Hifidawill research other competing suppliers to see how they compare to your supplier choice. We make sure that you’re getting a fair deal, and if we find a competing supplier that would be better suited for your production needs, we can help you connect. Our experts will visit competitor suppliers, in-person, to see how they compare to your supplier choice.

Onsite Factory Visits

Hifida visits the supplier in-person for a thorough inspection. Our experts take pictures and videos for your review, take note of other products currently being made, and visit with a factory stakeholder (usually a head manager or factory owner), which gives us unique insight into their credibility.

Analyzing Supplier’s Manufacturing Process

During our onsite visits, Hifida will take a close look at the manufacturing process the supplier uses. We make sure the supplier isn’t cutting corners, is using standard manufacturing processes, has proper quality control procedures in place, and is producing an end-product that is high-quality. 

Approving Supplier Credibility

After our extensive research into a supplier, Hifida will either approve supplier credibility, or we will recommend another supplier for you to work with. Reasons we may recommend another supplier can include:

• The supplier is a trade company posing as a factory
• The supplier is too inexperienced for the product you’re sourcing
• There are significant quality control problems that the supplier is unable, or unwilling, to address

supplier credibility Evaluation Fees

Hifida purchase planning fees are charged hourly, and our clients can choose what specific purchase planning services they need Hifida to perform. For example, your business may only need Hifida to organize and analyze past invoices to determine what to purchase next, while other businesses may need Hifida to use that data to create a long-term forecasting model, as well as to be told exactly when they should make their next purchase. 

Tell Hifida what specific procurement or purchase planning services you need, and we’ll take care of the rest. 

How do you verify a China supplier or factory?

There are several ways you can verify a China supplier. The steps that Hifida takes to do so include:

• Verifying documentation, including business licenses and bank account certificates
• Performing Physical examinations of factories
• Interviewing suppliers via phone call and checking references, when applicable
• Supervising a robust sampling process

How do you find a supplier in China?

Finding a supplier in China requires businesses to take time to perform the required due diligence to land on a quality option. If you’re new to looking for a China supplier, consider some of these basic steps:

• Spend time collecting a large amount of potential supplier options (for example, Hifida will create a list of 30-50 supplier options that could potentially be a good fit)
• Narrow down selections based on production experience, communication ability, and lead times
• Once the list has been narrowed down to 3-5 options, request samples and schedule a factory tour
• Base your final choice on sample quality, factory conditions, final pricing, and communication ability

What are the biggest issues with having a China supplier?

Many businesses are surprised to hear that outright fraud is extremely rare in China and that there are an enormous number of high-quality suppliers to choose from. The biggest issues are instead:

• Communication: The language barrier can be a huge issue when you have a China supplier. While some suppliers have English support, many excellent suppliers do not. This is why many businesses look to a third party (like Hifida) to help resolve the language barrier.
• Shipping and Fulfillment: If your supplier is in China, you have to figure out how to get products to your business or local fulfillment center. Many ecommerce businesses opt to utilize direct-to-customer China fulfillment, which our preferred fulfillment partner, EcommOps, specializes in.
• Production supervision: Many businesses don’t have the resources or expertise to physically be present at the factory to supervise production. This is an important part of quality control, which is why Hifida makes it a priority to physically supervise production at China factories. 

How important is it to verify a China supplier before beginning mass production?

It is extremely important to verify a supplier before beginning mass production. Businesses must make sure that:

• They aren’t participating in a fraud scheme
• They are working with a real factory and not a trade company
• The factory has a history of producing high-quality products
• The factory has the engineering capacity to make the exact products that are needed