Why a checklist beats intuition

Supplier failures are rarely surprises in hindsight. The warning signs were there: missed certifications, opaque ownership, single big customer, late accounts. A standard checklist forces you to ask every question, every time, before pressure or a tight deadline tempts you to skip steps.

Capability (questions 1–7)

  1. What is your installed capacity per process and per shift?
  2. What share of your capacity is currently committed?
  3. Which of your customers are in our industry?
  4. How long have you been making this type of product?
  5. What is your typical batch size and minimum order quantity?
  6. What in-house processes do you have vs. subcontracted?
  7. Show us a recent production sample of a similar part.

Quality and certifications (questions 8–13)

  1. Which certifications do you hold (ISO 9001, IATF 16949, AS9100, ISO 13485)?
  2. Can we see your quality manual and recent audit reports?
  3. What is your average defect rate and how is it measured?
  4. How do you handle non-conformities and customer complaints?
  5. What is your inspection plan for our category?
  6. What test equipment do you have in-house?

Financial and operational (questions 14–19)

  1. Share three years of audited financials.
  2. Who are your top three customers and what share of revenue?
  3. What is your typical payment-terms request?
  4. What is your insurance coverage (product liability, business interruption)?
  5. What are your standard lead times by product family?
  6. Describe your contingency plan for fire, flood or supplier failure.

Ethics and ESG (questions 20–25)

  1. Do you have a published code of conduct?
  2. What is your environmental management certification (ISO 14001)?
  3. Describe your labour practices and audits (SMETA, BSCI, SA8000).
  4. Where do you source your key raw materials and from which countries?
  5. What is your conflict-minerals policy?
  6. Will you accept on-site audits and unannounced visits?

Scoring and decisions

Score each answer against your category requirements. A supplier missing two or three answers is not necessarily disqualified — it depends on what is missing and how willing they are to fix it. A supplier evading the financial questions almost always is.