SUPPLIER DUE DILIGENCE SERVICE

You want to import Chinese goods but are still concerned about problems

• Is the Chinese supplier really reputable or not?
• Can't identify whether the supplier is a commercial or a manufacturer?
• How much can the size, production and labor of the supplier meet?
• What are the risk capabilities and risk management of suppliers?

The supplier due diligence service helps customers minimize risks the best!

Understanding the wishes of customers, SIMBA launched the supplier due diligence service with standard and accurate evaluation criteria. Businesses minimize risks and costs because they do not take time to go to China to directly appraise suppliers.

How does SIMBA perform supplier due diligence?

• SIMBA arranges personnel or specialists with expertise directly through the appraisal of the supplier's factory/head office to appraise legal entities, personnel organizations, production processes, specifications, product forms.
• We perform due diligence according to standard procedures, complete and accurate information.
• Support the appraisal of additional criteria at the request of customers.
• Prepare standard appraisal reports according to the process of sending customers.

BASIC REQUIREMENTS FOR SUPPLIER DUE DILIGENCE ASSESSMENT

1. Evaluation criteria

The supplier appraisal index system is the basis and standard for businesses to comprehensively evaluate suppliers. This is an indicator that reflects the various attributes of the complex system formed by the enterprise itself and the environment. This is the set of topology and hierarchy. The following aspects can affect supply chain partnerships:

• Supplier performance
• Device management
• Human resource development
• Quality control
• Cost control
• Technology development
• Delivery agreement

2. After-sales service

Purchased materials may be damaged during assembly and transportation due to quality problems or improper use. In such a case, the supplier will promptly repair and provide relevant after-sales support, without delay, or causing the procurement company to suffer losses.

3. Quality improvement and innovation

With the intensification of market competition, technological innovation and product innovation of enterprises has appeared another. Especially in high-tech enterprises, the rate of product innovation has been measured in days. The company's sense of innovation is inseparable from the support of suppliers, as well as improving the quality of raw materials and technology. Sometimes, supplier innovation is even one of the driving forces for enterprise innovation, bringing the business higher profits.

4. Ability to supply raw materials

This is the minimum standard for companies to evaluate supplier appraisals. Whether it's a supplier with a long-term relationship or a short-term supply contract, this is important. The evaluation of suppliers involves many aspects, and different companies have their own specific requirements and expectations.

• For large enterprises, especially multinational groups, the success of the selection of suppliers is related to the normal functioning of the entire system of the enterprise. As a result, they have stricter standards and broader content when evaluating suppliers.
• For small and medium-sized businesses: asking suppliers is relatively comfortable.

In addition, in terms of the content of the assessment, some aspects can be quantified, while others can only be observed from the long-term operation of the enterprise. Many businesses have formed a system of indicators to evaluate suppliers based on their own size and operations.

5. Risk capabilities and risk management

Future market demand for some materials is difficult to determine, there may be great demand, or there may be only supply in the development phase. Suppliers with good risk management capabilities are able to supply the necessary raw materials and products to the company at the right price in the market environment to ensure the normal production of the company.