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verification provider: How to minimize the risk of supply

experts stress the importance of due diligence after notice Alibaba provider fraud.

Sourcing experts have stressed the need for even the most experienced buyers to ensure effective assessment measures when selecting suppliers in China, particularly when sourcing online.

Alibaba following the sudden departure of two key executives, after the disclosure that the sales staff of the company "intentionally or negligently" allowed fraudsters to create more than 2,300 stores occurs.

"With the information coming out about the resignation of CEO and COO of Alibaba, the world of online sourcing should have just become a little 'better informed," said David Dayton of the Silk Road International, a China-agency international contracts that specializes in helping buyers find the right suppliers and coordinate the production.

"Let's face the face, we are all still going to be looking for new suppliers online. What can you do to protect yourself if you can not fly to China to investigate any potential supplier that is in contact with? " According

Dayton, the bare-bones online sourcing experience should be similar this:

Search only for manufacturers who were verified by a third party outside the site hosting their information.

Pay for background information and confirmation documents for any potential supplier before any commitment or pay a deposit.

Include in contracts with the supplier required 3PQC visits during production and before the final payment is made at the end of the project.

From third-party testing companies test to confirm your products and quality components.

confirm and verify container loading information to see that what you ordered, checked and tested is what is really is being shipped.

So how do you know if it really should be paying for these additional services? Here is a list of Dayton for clues to help gauge a provider of risk

Provider:

not provide a copy of the licenses or documentation.

does not want to visit his factory.

asks for cash and makes no warranty, such as money transfer via Western Union

is not readily or consistently available to speak with or meet outside of online forums.

will not or can not provide you with references or referrals past client.

provides a surprisingly wide range of both products and services.

not allow third-party quality.

"You can also pay for a background check to a vendor or an individual, the history of tax auditing, legal history, business registration, property and council members."

Read the full report on Global Sources, a leading business-to-business media company and a primary facilitator of trade with India and China manufacturers suppliers, providing the essential information Sourcing for volume buyers through Our e-magazine, trade shows and industry research.