3 Supplier Vetting Strategies to Build Long-Term Partnerships

Hey there,

I’ve decided to introduce a Top 3 Series in my newsletter, where I’ll share my top three picks for different topics at the end of every month! And of course, I’m kicking things off with Supplier Vetting Strategies that can save your business!

Not all suppliers are created equal. A bad supplier can lead to delays, quality issues, and financial losses—but a great supplier? That’s a game-changer for your supply chain. If you’re scaling a DTC brand, here are three supplier vetting strategies that will save you headaches (and money) in the long run.

1. Audit The Supplier’s Financial and Operational Stability

A supplier might promise the world, but can they actually deliver? Checking their financial health and operational capabilities helps you avoid unreliable partners.

📌 How to Vet:

• Request financial statements or credit reports to ensure they’re not at risk of shutting down.

• Visit their factory (or get a trusted third party to inspect) to verify production capacity. 

• Look for red flags like frequent delays with other clients or inconsistent production volumes.

🔎 Pro Tip: Check if they have diversified clients. If a supplier relies too heavily on one big customer, they might deprioritize your orders if that client needs more capacity.

2. Assess Their Quality Control Process

You don’t want to find out about quality issues after a shipment lands in your warehouse. Make sure your supplier has strong QC processes in place from the start.

📌 How to Vet:

• Ask for their quality assurance protocols (do they have ISO 9001 certification or in-house inspections?).

• Request product samples and conduct your own testing.

• Check customer reviews and case studies from their other clients.

🔎 Pro Tip: Set up a pre-shipment inspection process. Even the best suppliers can slip up, so having a third-party QC check before shipment helps prevent costly returns or product failures. V-trust is a good resource and we’ve been using them for more than 5 years now.

3. Negotiate Clear Terms and Service Agreements

A supplier might look great on paper, but without clear agreements, you could run into major issues down the road.

📌 How to Vet:

• Define lead times, payment terms, and penalties for delays in a formal contract.

• Make sure they agree to clear dispute resolution terms (what happens if they ship defective goods? Or when they are very delayed in the delivery schedule?)

• Establish clear reorder processes so there’s no confusion when you scale.

🔎 Pro Tip: Always start with a trial order (I call this a marketing order). This lets you test their reliability without committing to a long-term contract upfront.

Choosing the right suppliers isn’t just about cost—it’s about long-term reliability, scalability, and trust. Vetting properly now saves you major headaches later.

Move Supply Chain goes to China and Vietnam twice a year. Click here to know more.

What’s your go-to strategy when choosing a supplier? Hit reply—I’d love to hear your insights!

Cheers,
Lara