By Josh Price – Alibaba Group
Greater access to the global supply chain – sourcing from countries where there is better quality, more availability, or lower costs – has improved many aspects of the sourcing process. However, this has also brought about one significant challenge: how can you verify that a potential supplier is legitimate, in good standing, and trustworthy?
The team at Alibaba.com Select labored over this question. Alibaba.com Select is the one-stop, end-to-end solution for buying bulk supplies at wholesale prices powered by Alibaba.com. Born out of a need to mobilize global supply chains in the face of a pandemic, the New York-based team has helped numerous US businesses purchase tens of thousands of pieces of personal protective equipment (PPE) and other health and medical supplies to protect the health of their essential workers and patrons. The sourcing service has since expanded into additional categories and industries, but from the beginning, the team was able to quickly ramp up operations by developing a standard process to determine how to identify and authenticate suppliers who could produce large quantities of health and medical products while adapting to ever-changing rules and regulations.
The result was a comprehensive checklist that covers different steps of the supplier verification process. The team was able to leverage its worldwide network of logistics and inspection specialists who can perform these checks locally to establish a simple yet robust process that enables safe, secure, and reliable delivery of bulk purchases of health and medical equipment. Read on to learn about the steps Alibaba.com Select takes to ensure a smooth procurement experience for its customers.
- Basic information verification
This involves reviewing legal documents like business registrations and tax information to verify that it is true and up-to-date, and that the business is in good standing. This multi-point checklist includes reviewing industry licensing qualifications, scanning for past litigation, and verifying general information.
- Sales history inspection
This looks at the full rolodex of sales and export agreements that the company in question has entered. The team reviews the supplier’s main geographic distribution, monthly sales and export values, and much more.
- Production and R&D (Research & Development) review
Alibaba.com Select dispatches a local team to conduct a rigorous inspection of the supplier’s facility in person. There, the team ensures that the full production line and facility, from raw materials to technology, are up to standard. Aside from physical inspections, the team also reviews R&D testing capability, patents held, R&D engineers onsite – everything down to the electricity bill.
- Tax compliance verification
Tax compliance paints the picture of a company’s legal standing and trustworthiness. This stage of the verification process includes reviewing the supplier’s invoices for raw materials and finished products as well as input and gearing ratios to ensure that financial risk is minimal.
- Quality control inspection
It is very important that the supplier has its own internal quality control mechanisms. Alibaba.com Select conducts a thorough review of the supplier’s quality management system, raw materials, legal certifications, and finished product quality controls.
- Intellectual property review
The Alibaba.com Select team reviews the supplier’s intellectual property (IP) management practices to make sure that the supplier has not committed any past patent or trademark violations. The team checks the supplier’s trademark certifications and authorizations to ensure there is no IP infringement.
Alibaba.com Select will be hosting a booth at the upcoming Florida International Medical Expo (FIME) 2022 at the Miami Beach Convention Center. Stop by Booth V57 to speak with a sourcing expert on site. Register to attend FREE https://fimeshow.info/3vx6Rat For more information about FIME 2022 contact: [email protected]