5 Red Flags in New Suppliers (And What to Do)
Okay, let’s be real for a second. Finding a new supplier sometimes feels like dating. At first, everything seems perfect. They say the right things, they respond quickly, they promise the world (and at a “special” price just for you). But a few weeks in… the cracks show. And just like in relationships, ignoring red flags can cost you way more than you think.
So here’s my confessional-style list of 5 supplier red flags — with the business version of “dump him” (or at least, “have the hard conversation”).
🚩 1. They Oversell Themselves
You know that person who claims they’ve totally climbed Mount Everest, speak six languages, and make perfect sourdough bread? Suppliers do that too. If every answer to “Can you handle this?” is a shiny yes, with no detail, that’s a problem.
What to do: Ask for evidence. Certifications, client references, factory photos, quality audit reports. If their claims have zero backup, you’re dealing with someone who’s all talk.
🚩 2. Communication Feels… Off
In the early stages, communication should be smooth. But if you’re already chasing replies, getting vague answers, or feeling like your emails are disappearing into the void? That’s not just bad manners — it’s a preview of bigger problems down the line.
What to do: Test their responsiveness before signing contracts. Set clear expectations for communication frequency and format. If they can’t commit now, they won’t magically improve later.
🚩 3. They’re Too Cheap
Listen, everyone loves a good deal. But if a supplier’s quote is suspiciously lower than others, that’s not them being generous. That’s them cutting corners. Maybe it’s in material quality, maybe it’s in compliance, maybe it’s in labor conditions. None of those will end well for your business.
What to do: Compare quotes, but weigh them against capabilities and track record. If the price feels “too good to be true,” it probably is.
🚩 4. No Transparency in Operations
You ask for details about their production line, labor standards, or quality checks… and they dance around the answer. Big yikes. Transparency is non-negotiable. If they’re hiding something now, imagine what happens when an order goes wrong.
What to do: Push for transparency. Site visits, third-party audits, or at the very least, detailed documentation. If they refuse? Time to swipe left.
🚩 5. Overpromising on Lead Times
“We can ship in two weeks!” they say, with stars in their eyes. Except every factory you’ve ever talked to said six weeks minimum. Overpromising timelines is like someone promising they’ll “totally change” after three dates. It rarely happens.
What to do: Double-check industry norms. Ask about production capacity. If their promises don’t align with reality, expect disappointment — or worse, a completely missed delivery.
Final Thought
Red flags are easier to ignore when you’re desperate to close a deal (or find “the one”). But in procurement, ignoring them can bleed your budget, wreck your timelines, and cause sleepless nights. The good news? Once you learn to spot the signs, you’ll waste less time on the wrong suppliers and focus on the ones who actually deserve your trust.
Want to avoid supplier red flags altogether? Check out Sourcing International for guidance on trusted sourcing partners.