Selecting an international supplier isn’t just a cost decision. You’re deciding who you will depend on for quality, delivery and ultimately your reputation with the customer.
I learned that over more than 20 years working with international suppliers. I’ve spent more than 600 days in Asia and launched more than 85 product lines across retail and commercial markets in more than 12 countries.
And some of the most useful lessons came when things went wrong.
Years ago, we discovered that a supplier we had qualified was outsourcing production to a workshop we had never vetted. The paperwork checked out. We knew the supplier. But part of the actual supply chain was invisible to us.
I never looked at supplier qualification quite the same way again.
Start With What the Market Needs
One mistake I’ve seen is choosing a factory based on price and capacity, then designing around what that factory can produce.
I work in the opposite direction. Start with the customer and the market. What performance is required? What certifications? What materials, tolerances and target cost?
Then find the supplier that can meet those requirements.
A good supplier will challenge your assumptions. Their engineers may see a better way to manufacture something or identify unnecessary cost. That’s valuable.
But there’s a difference between improving a product and changing it because the factory can’t meet the requirement.
The factory needs to fit the product, not the other way around.
An Audit Only Gets You So Far
Formal qualification matters. Verify the company, inspect the facility, review its quality systems and certifications, and understand what is actually manufactured there.
For an important program, I want someone physically inside that factory.
But an audit can’t tell you everything.
It won’t tell you how management will respond when production is late or a quality problem threatens a customer delivery. You learn that by working together.
The best supplier relationships I’ve had combined both: good due diligence and trust earned over time.
COVID showed why that matters.
Factories closed, ports backed up and capacity tightened. We stayed close to our suppliers, worked through production and logistics issues together and maintained supply from China to major retail customers.
During that period, the business also launched new products, generated $7.8 million in new business, reduced purchase price variances by 20% and cut excess inventory by 44%.
A lot went into those results, but strong suppliers mattered. When things got difficult, we knew who would answer the phone and give us a straight answer.
Know What You’re Really Buying
China was the largest part of my supply chain for many years because of its manufacturing depth, engineering resources and component ecosystem.
But no geography or supplier is right for everything.
One factory may be excellent at optics. Another may be stronger in thermal management, injection molding, electronics assembly or testing. I want to understand what a supplier actually does well before awarding business.
I also want to know what it doesn’t do.
A few things immediately get my attention:
- Capabilities that can’t be demonstrated. If a supplier says a process is done in-house, I want to see it.
- Unapproved subcontracting. Know where your product is actually being made.
- Inconsistent company information. Legal entities, certifications, banking information and facility records should line up.
- Unexpected banking changes. Independently verify them before sending money.
None of that is complicated. It requires people to pay attention.
Build Options Before You Need Them
Tariffs and geopolitical issues have made supplier selection more complicated.
A factory quotation is only one part of the cost. Country of origin, tariffs, logistics, certifications, component sourcing and lead times all matter.
So does the cost of changing suppliers. Constantly moving production to save a few points can create new quality problems, repeat engineering work and restart the learning curve. Diversification should reduce meaningful risk, not create unnecessary churn.
My approach is straightforward: define the market requirement, find suppliers with the right capabilities, verify them, test the product, scale production carefully and measure performance.
At the same time, know your alternatives.
The Supplier You Want When Something Goes Wrong
I’ve never viewed sourcing as a search for the cheapest factory.
A low piece price gets expensive quickly when you add missed deliveries, quality failures, reengineering, excess inventory, tariffs or a lost customer.
I want suppliers that perform, understand the business and tell me the truth when there’s a problem. A strong relationship doesn’t mean overlooking poor performance. Suppliers still have to deliver. But when accountability and trust exist together, a supplier can become much more than a company filling purchase orders.
When business is good, that makes the operation better. When something goes wrong, it can protect the business.
That’s the difference between buying from a vendor and building a supply chain.