Why Do You Need Supplier Verification for Your Business?
A disorganized and unreliable supplier can cause huge issues in your supply chain. For any business to establish its strong foot in the market, the need for developing a strong supply chain is an absolute necessity. Therefore, a supplier for your business must be dependable and trustworthy. Ensure the credibility of your suppliers with our comprehensive Supplier Verification services.
But how will you know if they are trustworthy? How can you ensure that you can get a large order based on their services?
Supplier Verification or Vendor validation is a Verification process that helps businesses to ensure their suppliers are legitimate and dependable. Consulting a third-party verification service like Zella will help you ensure you are working with the right people.
Supplier verification includes confirmation of basic information about your vendor such as:
- Company name and address.
- Tax information.
- Business license and other critical credentials.
- Contact information.
- Experience and past record.
- Insurance and fraud protection.
- Article of incorporation.
When You Will Need Vendor Validation?
You need supplier verification in different situations such as:
- You want to increase efficiency and decrease the cost of goods, so you are looking for a new supplier offering reduced prices.
- You are looking for a supplier near you.
- You are going to scale your business and your existing supplier does not have scalability, so you need more suppliers.
- You are introducing a new product, so you need a supplier for new raw materials.
Reasons That Will Help You Ensure You Have the Right Supplier:
1. Prevent Vendor Fraud in Your Business
Your raw material supplier is the backbone of your company to provide the best for your customers. If there is any issue with your raw material or its quality, your end product will be affected. In addition, fraud can be in the form of numbers, accounting, the size of raw materials, and more. According to a survey, more than 50% are suffering from fraud out of which 39% are due to vendors. These huge numbers are scary for any business. Therefore, hiring a third-party verification company becomes critical.
2. Prevent the Loss of Large-cap Orders
If your vendors are offering illegal services, or products or doing any kind of fraud it will directly impact your business products and their sales. Supplier verification becomes of utmost importance when you have to partner with suppliers for large orders. When there is a huge investment involved, businesses should not compromise with quality and background checks. It will not only help you find out the authenticity of your supplier but also gives you a sense of reliability.
3. Long-term Relationship With Your Supplier
When you are investing in supplier verification, it means you are willing to work with suppliers for a long time. A dependable supplier that fits all your criteria for business and clear verification can be a strong pillar for your supply chain in the long run. Therefore, to ensure a strong and long-term commitment to your suppliers, you need a verification process to ensure reliability.
4. Company Reputation
When you associate your name with a vendor, anything that happens to their image will affect you. If your vendor is found doing discrepancies or illegal activities, your brand reputation will suffer. In addition, there are chances your brand might be under scrutiny. Therefore, supplier verification can help you ensure they are legitimate and not involved in discrepancies.
These are some of the most critical reasons that explain why supplier verification is important. Suppliers are a strong part of your business to produce the best end products, if something illegal or discrepancy is there with your supplier, your business will directly get affected.
Zella offers the best comprehensive verification services for businesses. You can get background check services, criminal checks services, past records checks, and other services to validate you are working with the right suppliers.