Questions to Ask Suppliers
Questions for a buyer evaluating a new supplier, from a first sample order through to a long-term contract. They cover lead times, how the price is built up, defect rates, who pays when a batch fails, tooling ownership, and how the relationship would end.
The questions
Open any question for the note
Who else are you supplying in my industry at roughly my volume?
Why ask it
Suppliers will happily list their largest customers, which tells you nothing if your order is a fraction of that size. References at a comparable volume show how a small account gets treated on the week a big one has a problem.
What's the lead time on a first order, and on repeat orders after that?
Why ask it
The two figures are usually different, and the first is often quoted optimistically because tooling, samples and approvals are left out. Ask what the last three orders of this type actually took, door to door.
Where is this actually made, and do you own that facility?
Why ask it
Plenty of suppliers are traders rather than manufacturers. That is not disqualifying, but it changes who you can escalate to when a batch is wrong, and if they will not name the plant you should assume you can never audit it.
What's your minimum order, and what does the price look like at three different volumes?
Why ask it
Asking for the curve rather than a single quote shows where their pricing breaks and whether growth would actually save you anything. It also catches the supplier whose minimum quietly rises after the first order.
How is that price built up, and which parts move with material costs?
Why ask it
You need to know which inputs are exposed to metal, resin, freight or currency, because those are the lines that will arrive later as a surcharge letter. A supplier who cannot break it down is reselling or guessing.
How long is the quote valid, and what notice would I get before a price rise?
Why ask it
Notice periods are negotiable at the start and almost never afterwards. Thirty days is thin, ninety is workable, and no answer at all means you will learn about increases from an invoice.
What payment terms can you offer, and what would it take to get to net thirty or sixty?
Why ask it
Terms are often the largest cash concession available and cost the supplier less than a discount. Getting them to name the condition, a deposit, a guarantee, six months of clean history, gives you something specific to work towards.
Who inspects the goods before they ship, and what paperwork comes with them?
Why ask it
A good answer names a stage and a document: certificate of analysis, mill certificate, test report, inspection record. Assurances about high standards with no paperwork behind them mean the first real inspection happens at your dock.
What's your defect rate on this product, and how do you measure it?
Why ask it
A supplier who tracks the number will give you one even when it is unflattering. Claims of zero defects usually mean nobody is counting, and you will be the one who ends up establishing the rate.
If a batch fails, what happens? Who pays for freight, rework and lost production?
Why ask it
This is the most useful question on the list, because every supplier says quality matters and very few will commit to who pays. Whatever they answer, get it into the contract rather than leaving it in a sales email.
What happens if you're late? Is there anything in the contract about that?
Why ask it
Most standard supply terms make a late delivery cost the supplier nothing whatsoever. Whether they will even discuss a remedy tells you how seriously your schedule is being taken.
What's your capacity for this item, and what share of it would I be taking?
Why ask it
A tiny share means you get bumped when a larger customer pushes. Most of their capacity means you cannot grow and they cannot survive losing you. Either is manageable once you know which one you are in.
How much finished stock do you hold, and how much of your input material?
Why ask it
Buffer stock is what absorbs the next shortage upstream. A supplier running strictly to order will pass every disruption straight through to you, usually within a few weeks and without warning.
Who would be my day-to-day contact, and who covers when they're away?
Why ask it
A named person with a named backup is the difference between a problem that gets fixed and a week of unanswered email. Ask for the escalation path in writing, including someone senior to your account manager.
Which certifications do you hold, and can I see the current certificates?
Why ask it
Ask for the document with the expiry date, not the logo on the website. Lapsed certificates are common, and the scope listed on a valid one frequently excludes the exact product you are about to buy.
How would you handle a recall or a traceability request from me?
Why ask it
You are testing whether lots are traceable at all, and how fast. If they cannot say how quickly they could identify which of your shipments contained a given batch, that problem becomes entirely yours.
What are your terms on tooling, moulds and drawings?
Why ask it
Who owns the tooling decides whether you can ever move suppliers without starting from scratch. Settle ownership, storage and release on termination in writing before you pay for any of it.
Can I visit, and who would show me round?
Why ask it
Willingness is the signal, and the visit itself tends to answer questions you would not have thought to ask. A supplier who deflects a site visit for a serious order is hiding either the conditions or the fact that the site is not theirs.
How would this end? What notice, what final order window, and what happens to my materials?
Why ask it
Negotiating the ending while everyone is still optimistic costs far less than negotiating it mid-dispute. Look for a notice period, a last-time-buy window, and the return of tooling, drawings and consigned stock.
Can I speak to a customer you lost, and to one who had a serious quality problem?
Why ask it
Hand-picked references tell you nothing. How the supplier reacts to this request, and whether the difficult customer describes them as honest while things were going wrong, is the most informative part of the whole process.
Comparing and onboarding a supplier
Practical guidance for the conversation itself
Comparing quotes properly
Send everyone the identical specification
Quotes are only comparable when the spec, quantity, packaging, delivery point and payment terms are the same. Half of the apparent price gap between two suppliers usually disappears once you normalise freight, duty and packaging.
Price the total, not the unit
Add freight, duty, inspection, the cost of your payment terms and an allowance for scrap to every quote. The lowest unit price with sea freight and a two percent defect rate is often the most expensive option once it lands.
Run a paid trial order before you commit
A small first order at full price teaches you more than an audit: whether the documents arrive complete, whether the packaging survives the journey, and whether anyone answers the phone when the count is short.
Check the company, not just the salesperson
Look at the registered entity, how long it has traded, and whether the bank details match the trading name. Payment fraud in supplier onboarding almost always appears as a late change of account details by email, so verify any change by phone on a number you already had.
Get these in writing
- Specification and acceptance criteria, with tolerances stated.
- Lead time for first and repeat orders, measured from a defined trigger such as cleared payment.
- Quote validity period and the notice required before a price increase.
- Who pays freight, rework and return costs when a batch is rejected.
- Inspection stage and the documents that ship with each lot.
- Tooling ownership, where it is stored, and its release on termination.
- Notice period, last-time-buy window and return of your materials and drawings.
- Named contact plus an escalation path with someone senior to them.
Warning signs
- Will not name the manufacturing site, or deflects a visit for a serious order.
- A quote with no validity date on it.
- Cannot state a defect rate, or claims there have never been any.
- Bank details that do not match the trading name, or a change of details requested by email.
- A minimum order quantity that rises after the first quote.
- References only to their largest customers, or references you cannot independently reach.
- Refusal to discuss what happens financially when a batch fails.
- Every relevant certification described as in progress.
Once you are working together
- Keep a three-number scorecard: on-time delivery, defect rate, response time. That is enough to make a renewal conversation factual instead of emotional.
- Raise small problems early and in writing. Suppliers act on a pattern you can show them; they rarely act on a complaint that only surfaces at renewal.
- Do not let a single supplier become your only source for a critical part without a documented alternative, even one you consider too expensive to use.
- Review pricing on a fixed date each year rather than when a surcharge letter arrives, so the conversation happens on your timing rather than theirs.