Choosing the wrong manufacturer is one of the most expensive mistakes a brand can make. Quality issues, delays, ghosting, hidden costs — nearly every sourcing horror story traces back to one thing: poor vetting.
This checklist gives you a clear, step-by-step process to evaluate any sourcing agent or overseas factory before you send a PO. It’s the same framework Sourcify’s team uses when adding factories to our pre-vetted global network.
1. Verify Business Legitimacy and Credentials
Start with the basics: is this partner who they say they are?
Documents You Should Always Request
- Business license and registration certificates
- Export licenses and trade permits
- ISO certifications (ISO 9001 is standard for quality management)
- Industry certifications (FDA, CE, RoHS, etc.)
- Factory audit reports from reputable third-party inspection firms
Red Flags
- Hesitation or refusal to provide official documentation
- Different company names across platforms
- “New” companies claiming decades of experience
- No physical address, or only a virtual office
Pro Tip: Sourcify eliminates this step entirely by providing only pre-vetted factories, so you skip months of due diligence.
2. Assess Manufacturing Capabilities and Capacity
It’s not enough for a factory to say they can produce your product — you need proof.
Key Questions
- What is your monthly capacity?
- What is your MOQ?
- What similar products have you manufactured?
- What materials or technologies do you specialize in?
- Can you support both sampling and mass production?
Request Tangible Evidence
- Previous product samples
- Photos or videos of production lines
- List of current clients (with permission)
- Production timelines for similar SKUs
Warning Signs
- Vague answers
- Claims of mastering too many unrelated product categories
- No references or samples
- Unrealistic production capacity
3. Evaluate Quality Control Processes
QC failures are the fastest way to drain margin and destroy trust with customers.
What Good QC Looks Like
- Dedicated in-house QC staff
- Testing equipment and lab facilities
- Clear defect rate data
- Documented processes for handling defects
- Willingness to allow third-party inspection
Best Practice: Never load a container without third-party QC. Sourcify requires independent inspections on all shipments before they leave the factory.
4. Check References and Track Record
Proof from real brands matters more than anything a factory says about itself.
Reference Check Process
- Ask for 3–5 recent client contacts
- Search for independent reviews
- Check LinkedIn, social channels, and industry forums
- Look for case studies or published success stories
Questions to Ask
- How long have you worked with this manufacturer?
- Were there quality issues? How were they resolved?
- Were deliveries on time?
- Would you work with them again?
5. Test Communication and Responsiveness
Poor communication is the root cause of many preventable sourcing disasters.
Evaluate Early
- Response time (should be 24–48 hours)
- Professional, clear communication
- Willingness to do video calls
- Understanding of technical details
- Proactive updates during development
Modern Fix: Platforms like Sourcify offer real-time messaging, reducing miscommunication and eliminating scattered WhatsApp threads.
6. Understand Pricing Structure and Payment Terms
Transparency matters more than the lowest quote.
Financial Due Diligence
- Request itemized quotes
- Understand payment terms (30/70 is standard)
- Clarify what fees include (tooling? samples? shipping?)
- Compare multiple quotes
- Investigate prices that seem too low
Payment Safety
- Use secure methods: LC, escrow, Trade Assurance
- Never pay 100% upfront
- Avoid personal bank accounts
- Choose partners who offer payment protections
7. Conduct Factory Audits or Site Visits
Nothing replaces seeing operations firsthand.
If You Can Visit
- Tour production lines and warehouses
- Meet QC, production, and management teams
- Observe worker conditions
- Inspect machinery and process flow
- Review samples being made for other clients
If You Cannot Visit
- Live video tours
- Third-party audit services (SGS, Intertek, BV)
- Time-stamped production photos
- Review recent audit reports
What Sourcify Does: Our teams in China, Vietnam, India, Pakistan, and the U.S. personally visit and verify factories before they join our network.
8. Protect Your Intellectual Property
IP theft risk is real — but manageable with the right structure.
IP Protection Steps
- Require NDAs from all partners
- Register trademarks and patents in the manufacturing country
- Use contracts with explicit IP ownership clauses
- Limit early disclosure of proprietary information
- Split production across factories if needed
Legal Foundation
- Work with lawyers who specialize in international manufacturing
- Understand local IP laws
- Include penalty clauses
- Register with customs to block unauthorized exports
9. Evaluate Supply Chain Stability
A manufacturer is only as stable as their own suppliers.
Questions to Ask
- Who are your raw material suppliers?
- Do you have backups?
- How do you handle shortages or cost increases?
- How did you perform during recent global disruptions?
- Do you hold material inventory?
Good Signs
- Multiple supplier relationships
- Strong working capital
- Transparent communication
- Flexible sourcing options
10. Test With a Small Order First
Before handing over full production, test the relationship.
Smart Pilot Process
- Start with samples
- Place a small initial order
- Inspect everything on arrival
- Document issues and evaluate responsiveness
Evaluate
- Does the product match the approved sample?
- Was the timeline accurate?
- Was communication proactive?
- Were there surprise costs?
- How did they handle problems?
Vetting Is Your First Line of Defense
The truth is simple: most sourcing problems — bad quality, late shipments, disappearing agents, unexpected costs — can be prevented before they happen. Strong vetting protects your brand, your margins, and your sanity.
But doing it correctly takes time, cross-border experience, and on-the-ground factory insight. That’s why so many founders choose Sourcify as their trusted sourcing operations partner.
Let Sourcify Vet Your Next Manufacturer
If you’re evaluating a new factory, expanding into a new region, or planning next year’s production, Sourcify can help you:
- Work only with pre-vetted, high-quality manufacturers
- Gain complete visibility into pricing, communication, and timelines
- Avoid costly mistakes with expert QC oversight
- Build a stable, long-term manufacturing strategy across China, Vietnam, India, Mexico, and more
👉 Book a free sourcing strategy call to review your current suppliers or upcoming production run.
Let’s make sure you’re working with the right factory — before the PO goes out.
