12 Essential Questions to Ask a New Supplier Before You Start

A new supplier is a strategic decision that can shape the future of your operations. The supplier you choose will impact everything from product quality and cost control to delivery performance and your position in the market. Unfortunately, many companies rush this process, without fully understanding the supplier’s capabilities. This leads to issues that surface only after production begins. Strong supplier relationships are built well before the first order is placed, and they start with asking informed, meaningful questions. This guide presents 12 essential questions designed to help you assess a supplier’s operational strength, financial health, quality practices, and long-term reliability. Let’s dive in.

1. What Is Your Company’s Background, Experience, and Core Competence?

Every successful supplier evaluation begins with understanding who the supplier is at their core. You want to know:

• How long they’ve been in business
• The industries they typically serve
• Their production specialties
• Certification or accreditation
• Their unique strengths or value propositions

A supplier with a clear specialization is often more reliable than a generalist who attempts to handle every type of product. Experience and track record can indicate stability and capability, both crucial when entering a long-term partnership.

Why this matters: Knowing their background helps you assess alignment with your product needs, quality expectations, and industry standards.

2. What Is Your Production Capacity and Scalability?

Today’s suppliers may meet your needs, but will they meet them as your company grows?

Key points to clarify:

• Monthly and annual production capacity
• Peak-season capabilities
• Flexibility to scale up (or down)
• Machine count, automation level, and workforce size

A supplier with limited capacity may struggle when your demand increases. Conversely, a supplier that is too large may deprioritize smaller customers.

Pro tip: Ask about their “capacity utilization.” A factory running at 95% capacity leaves little room for sudden increases in volume.

3. What Quality Control Systems Do You Use?

Quality should never be an assumption; it must be verified. Ask the supplier:

• Do you follow ISO 9001 or similar systems?
• How do you control incoming materials?
• What inspections are done during production?
• Do you conduct outgoing quality checks?
• Are AQL (Acceptable Quality Limit) standards used?
• Do you support third-party inspections?

Strong quality systems reduce defects and minimize rework. Weak systems can silently increase your cost of doing business.

Why this matters: Quality issues in early orders usually indicate deeper systemic problems.

4. What Certifications, Compliance Standards, or Audits Have You Passed?

Depending on your industry, a supplier may need certifications related to:

• Safety
• Environmental management
• Social accountability
• Industry-specific compliance (e.g., FDA, CE, RoHS, REACH, GMP)

Request documentation such as:

• ISO certifications
• Product test reports
• Social compliance audit reports
• Environmental certifications

Suppliers lacking required compliance will expose you to legal, regulatory, and reputational risks.

5. Can You Provide References or Case Studies from Existing Clients?

Reliable suppliers should be able to share:

• References
• Testimonials
• Case studies
• Long-standing client relationships

References help verify:

• Delivery performance
• Reliability
• Communication style
• Quality consistency
• Ability to solve problems under pressure

If a supplier hesitates, it could indicate customer dissatisfaction or a weak track record.

6. What Is Your Pricing Structure and Quotation Transparency?

Price alone should never determine supplier selection. Instead, focus on how the supplier prices their work. Ask:

• What is included in the quoted price?
• Are tooling, packaging, or mold fees included or separate?
• Do prices include inspection, testing, or certification costs?
• What is the policy for price increases?
• Are there minimum order quantities (MOQs)?

Transparent, predictable pricing helps you budget accurately and avoid surprise costs.

Pro tip: Compare itemized quotes across multiple suppliers, not just total cost.

7. What Are Your Lead Times and Delivery Capabilities?

Delivery delays can disrupt your entire supply chain. Clarify:

• Standard production lead time
• Lead time during peak seasons
• Export logistics capabilities
• Shipping documentation process
• Delivery tracking practices
• On-time delivery rate (ask for data)

A great supplier delivers consistently, not occasionally.

8. What Are Your Communication Practices and Response Time?

Communication determines how smoothly issues are handled. Ask:

• Who will be your primary contact?
• What is their typical response time?
• Do they communicate proactively?
• Do they provide written confirmations for all agreements?
• Are they comfortable using your preferred communication channels?

Why this matters: Clear communication is the backbone of every successful supplier relationship.

Clear communication is essential when working with any new vendor. For guidance on establishing strong initial expectations, see our article How to Set Expectations with New Overseas Suppliers.

9. How Do You Handle Problems, Defects, and Corrective Actions?

Problems will occur eventually, and what matters is how the supplier handles them.

Ask for specifics:

• What is your non-conformance handling procedure?
• How do you implement root cause analysis?
• What corrective actions do you take?
• What is your timeline for resolving complaints?
• Do you provide corrective action reports (CARs)?

A supplier’s willingness to address mistakes is as important as their ability to avoid them.

10. What Are Your Policies on Intellectual Property (IP) Protection?

IP risk increases when working with overseas suppliers. Clear expectations should be in place for:

• Design confidentiality
• Tooling ownership
• Trademark and branding usage
• Non-disclosure agreements
• Access restriction to sensitive data

Suppliers should demonstrate clear internal controls to protect your designs, molds, logos, and trade secrets.

Pro tip: Only work with suppliers willing to sign an NDA and IP protection agreement.

11. Can We Visit Your Facility or Conduct a Third-Party Audit?

A reputable supplier will never oppose factory audits. Ask if you may:

• Visit the factory in person
• Conduct a pre-onboarding factory audit
• Send a third-party inspection company
• Review their production process onsite

A factory that refuses audits is a major red flag.

Inspection visits help verify:

• Production capability
• Working conditions
• Machine reliability
• Staffing levels
• Quality practices
• Overall factory management

For high-value products, audits are a non-negotiable step.

12. What Are Your Terms for Payments, Contracts, and Long-Term Cooperation?

Clarify financial and operational expectations from the start:

• Payment terms (Deposit? Balance upon shipment?)
• Accepted payment methods
• Credit terms for long-term clients
• Purchasing agreements
• Warranty and return policies
• Penalties for late delivery or quality failures
• Termination clauses

Why this matters: Clear contractual terms set the tone for a fair, transparent, and collaborative partnership.

Build a Supplier You Can Trust

Finding a new supplier is not simply about choosing the lowest bid; it is about selecting the right long-term partner who can grow, adapt, and deliver consistently.

By asking the 12 essential questions outlined in this guide, you will be able to:

• Evaluate competence
• Assess quality systems
• Understand capabilities
• Identify risks
• Determine reliability
• Align expectations
• Build a foundation for long-term success

Thorough vetting up front saves time, money, and frustration later.

Once you have evaluated a supplier with the right questions, the next step is onboarding them effectively. Our Supplier Onboarding Checklist: A Guide to Smooth Transitions provides a clear roadmap.

AMREP Mexico: Your Partner in Reliable, High-Quality Supplier Performance

Great suppliers do more than manufacture products. They support your business goals, uphold your standards, and adapt as your needs evolve. Taking the time to ask the right questions ensures you choose a partner who strengthens your supply chain instead of weakening it.

The strength of your supply chain depends on the reliability of the partners you choose. AMREP Mexico offers trusted Supplier Quality Services designed to help companies reduce defects, strengthen supplier performance, and ensure consistent product quality from day one. With AMREP Mexico by your side, you gain the clarity, control, and confidence needed to build long-term supplier relationships tha