Before a first order with a supplier in Vietnam

I run a factory, so I know the questions I would want a buyer to ask me. I have also assessed suppliers myself. Here are the questions, with what a straight answer should sound like.

Questions before the first order

1. What do you make yourselves, and what do you subcontract? A factory that names its subcontractors is easier to trust than one that says “everything is in-house”.
2. How do you approve a sample before production? Look for a pre-production sample that matches the final method and materials, with a written sign-off, not a verbal “looks fine”.
3. What does your latest audit say, and can I visit? Ask for the report and the corrective actions. Visits should be possible at any time.
4. Where do the materials come from, and how long do they take? In this industry many inputs are imported, so material lead time often decides the delivery date more than sewing does.
5. What is your minimum per style, and what happens below it? Minimums are a cost of setting up a small run, not a trick. Understand them before you plan a collection.
6. What happens when I need to double the volume, or change a material? The answer shows how much slack the factory really has.
7. Who answers my questions, in which language, and how fast? A project that moves on a slow channel loses weeks.

When the supplier is critical, go there

If the product or the process a supplier will provide can be critical for you, I try to visit in person and meet the owner or the managers. A visit shows what a questionnaire cannot: how the place is run, who decides, and whether what you were told matches what you see. If a visit is not yet possible, ask for pictures and videos of the processes.

Red flags

• Answers that are inconsistent from one conversation to the next.
• A refusal to host a visit, or to send pictures or videos of the processes, or a long delay doing either.
• A price far below every other quote, with no explanation.
• Vague answers on where materials come from.
• No named person responsible for your order.

A lesson learned the hard way

We once gave a supplier too much autonomy, without the right control gates in place and without a plan B ready. When it went wrong, the disruption to our customer service was major, and nothing was in place to catch it or to replace the supplier quickly.

The remedy is simple to say. Give autonomy in stages, with a check to pass before each stage, and have a fallback ready before you need it.

Total cost, not unit price

The price per piece is the number everyone compares, and it is the smallest part of the story. Add the rest:

• Freight and duties, which vary by route and change with trade rules.
• Minimum quantities, which turn into stock you pay for and store.
• Quality: defects, rework and returns cost far more than they show on a quote.
• Lead time: a long one means ordering earlier on a forecast, which means holding risk.
• Payment terms: who funds the materials, and for how long.
• Exchange rates between the currency you pay in and the one the factory’s costs are in.

A supplier who is a little more expensive per piece and reliable often wins on this basis. Compare two quotes on the same list, not on one line.