Evaluating a potential supplier – more tips

I have been thinking more about this over the last several days and I have come up with a couple more tips that you might find useful when trying to determine if a prospective supplier is right for you. These are as follows:

1.) Consider how far your vendor lives from the factory. You are going to be communicating with your vendor on a regular basis and will be expecting them to pass on all of your instructions and concerns to their workers. It is imperative, therefore, that the vendor lives in close proximity to the factory and is there at least a few times a week. “Mr Huang” in my previous post lived three hours from his factory and relied on his brother – who lived nearby – to manage the workers. When I was at the factory, I asked one of the workers how often Mr. Huang or his assistant came to the factory and was told once every two weeks. Vendors do not like to go to the factories because the roads are bad causing significant wear and tear on vehicles, there are sometimes significant bottlenecks with the traffic meaning a three-hour trip can take all day and, most importantly, there is an abundance of down-time at the factory and nothing to do.

2.) It can sometimes be insightful to meet a vendors family. I will never forget making a trip to China to talk to a couple of suppliers, one from Anhui and one from Guangxi Province. I spent a few days with each and in that time had occasion to meet their families. Mr Zhang, the Anhui vendor, had a son whom he seemed to be having significant trouble with. He was attending a private school in Beijing but, from all appearences, was not very motivated. Well, as it turned out, Mr. Zhang’s son was just like Mr. Zhang. Even when we dangled promises of lucrative orders in front of him, Mr Zhang moved with all the alacrity of a snail. He was always behind on the production and shipping schedule and this caused significant problems with our customer because we were delivering a seasonal product. In fact at one point our customer had to stop their order processing just to wait for our deliveries. After just one year we cut ties with Mr. Zhang.

Mr. Ma, the Guangxi vendor, on the other hand, was an impeccable vendor. Although he could not boast first-rate production facilities he always delivered product on time that was according to specifications and very clean. But this was not surprising to me after meeting Mr. Ma’s son, a sharp kid who was studying engineering at a very good university in Beijing. He also spoke great English. In fact, Mr. Ma’s other two sons were also attending very reputable universities. That a rural vendor – Mr. Ma lived close to the factory, five hours from the nearest city – would be able to send three children to good universities spoke volumes about Mr. Ma’s work ethic and values. Of course, you are not going to select a vendor just because he sends his son or daughter to a good university, but how he/she runs his/her family can be a clue as to how he/she runs his/her business.

These, then, are some of the little things that can help you to evaluate a vendor.

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