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Supplier Tools

Supplier Risk Checker

Assess supplier risk across factory type, business age, capability, tooling ownership, QC, certification, samples, and payment terms.

Supplier Assessment

Rate the supplier on each factor based on what you know — or can verify.

Supplier Risk Assessment

Safety ScoreMedium Risk
65/100

Supplier risk score: 65/100 (Medium Risk). 1 warning(s), 2 positive(s).

Risk Factors

  • ⚠Tooling Ownership: Unclear tooling ownership can lead to disputes if you switch suppliers later.

Positive Factors

  • ✓Factory vs Trading Company: Direct factory — better pricing and direct accountability.
  • ✓Years in Business: Good standing.

Example

A trading company, 3–5 years old, claimed capability (not verified), unknown tooling ownership, no QC documentation, no certifications, no samples yet, payment terms not discussed:

Risk Score: ~25/100 — Critical Risk. Multiple red flags require verification before proceeding.

How to Use This Tool

  1. Enter your inputs in the fields above.
  2. The tool calculates results automatically — no submit button needed.
  3. Review the results below. All estimates are approximate and for planning purposes only.
  4. Use the copy or print buttons to save your results, if available.

Disclaimer: This tool provides estimates for planning purposes only. Actual costs, timelines, and outcomes depend on factory capability, order quantity, material market conditions, design complexity, and many other factors. Always confirm with written supplier quotations before making purchasing or investment decisions.

Frequently Asked Questions

What's the most important factor in supplier risk?
Factory vs. trading company is the single most important distinction. Direct factories offer better pricing, accountability, and quality control visibility. Trading companies add a layer but may provide better communication and aggregated services. The key is to know which you're dealing with.
How do I verify a supplier's claims?
The most reliable methods: (1) factory audit/visit (yourself or a third party), (2) reference checks with existing customers, (3) requesting and verifying business licenses, (4) checking certifications with issuing bodies, (5) ordering samples before any production order.
Is 100% advance payment ever acceptable?
Almost never for a first order. Standard terms in China are 30% deposit, 70% before shipment (after inspection). 100% advance gives you zero leverage if quality is poor or delivery is late. Some small tooling-only orders may require full advance, but never for production.
What certifications should I look for?
It depends on your product and market. Common ones: ISO 9001 (general quality management), ISO 14001 (environmental), BSCI or SEDEX (social compliance). Product-specific: CE, FCC, RoHS, REACH, FDA, UL. Ask for copies — don't just accept a verbal claim.
What if I can't visit the factory in person?
Options: hire a third-party inspection company ($300–500/day in China), request a video factory tour, ask for equipment and production line photos, check the supplier's export history on customs databases. Never rely solely on the supplier's Alibaba or website profile.

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