How I evaluate new suppliers before placing any order (framework I use)
Before I commit to any supplier, I run them through the same checklist every time. Learned this the hard way after a few bad orders early on.
The 5 things I look at:
1. Landed cost, not unit price. The quote means nothing until you add freight, customs duty, brokerage fees, and inspection costs. I've seen $5/unit quotes turn into $9 landed. Always calculate the true cost before comparing suppliers.
2. On-time delivery rate. Ask for it directly. A supplier who hesitates or can't give you a number is telling you something.
3. What happens when something goes wrong. Ask them: "If 10% of my order arrives defective, what's your process?" Their answer tells you everything about how they operate.
4. Canadian import compliance (or your country's equivalent). Can they provide the documentation your customs authority needs? If not, you're taking on that risk yourself.
5. Communication before the sale. If they're slow or vague when they're trying to win your business, it gets worse after you've paid.
I actually built a scored evaluation sheet around this that I use for every new supplier — happy to share if anyone wants it.