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Supplier due diligence checklist

A practical checklist for vetting a new supplier, manufacturer or distributor before the first order. Use it yourself, send the questionnaire to suppliers, or ask us to run the checks for you.

How to use it

Match the depth of checks to the risk.

Not every order needs every check. For a small trial order from an established supplier, sections 1, 3 and 7 are usually enough. For large orders, new countries, regulated products or public-sector contracts, work through every section and keep the evidence.

Record the source and date of every check. A supplier due diligence report is only as good as the evidence behind it.

The checklist

Supplier due diligence checklist: 8 areas to check.

Work through each area and mark every item as verified, claimed only, or open.

1. Identity and legal status

  • Full legal name, registration number and country of incorporation match the official company register
  • Company status is active, and the registration date fits the claimed trading history
  • Registered address and operating address are real and consistent (check maps and street imagery)
  • Tax or VAT number is valid where a public lookup exists
  • Website domain, email domain and company name are consistent; free webmail for a large supplier is a warning sign
  • Business licence covers the products offered, including any export licence or permit needed

2. Ownership and management

  • Directors and shareholders identified from registers or documents
  • Ultimate beneficial owners known for larger or higher-risk orders
  • Clear whether the supplier is a manufacturer, trading company or agent
  • Related companies and previous names checked

3. Sanctions, compliance and reputation

  • Company and key people screened against the main sanctions lists (UN, US OFAC, EU, UK)
  • Country, product and end-use checked for export controls and trade restrictions
  • Adverse media, litigation and fraud-warning searches completed
  • Anti-bribery and conflict-of-interest questions answered in writing
  • Labour, environmental and forced-labour risks reviewed for the sector and country

4. Financial standing

  • Bank account is in the supplier's own legal name and country
  • Deposit and payment terms are normal for the product and market
  • Financial statements or credit report reviewed for larger orders
  • Any request to change bank details is verified by phone with a known contact

5. Capability and quality

  • Product range, production lines and capacity match the order volume
  • Certificates (ISO 9001, CE, product-specific) checked with the issuing body
  • Recent third-party audit or inspection reports reviewed
  • Samples tested against your specification
  • Quality control process and defect handling explained in writing

6. Track record and references

  • At least two customer references contacted, ideally in your market
  • Export history: countries, buyers and typical shipment sizes
  • Marketplace, trade-show and public-tender history checked
  • Complaint patterns and reviews looked at critically

7. Commercial and contract terms

  • Written quotation with product specification, price basis and Incoterms
  • Lead times, packaging, labelling and documentation agreed
  • Inspection rights before shipment
  • Warranty, remedies and dispute-resolution forum agreed
  • Confidentiality and intellectual-property protection where designs are shared

8. Logistics and documentation

  • Supplier can provide commercial invoice, packing list, certificate of origin and other required documents
  • Shipping route, forwarder and insurance responsibilities clear
  • Product meets import rules and standards in the destination country
Red flags

Warning signs to stop and check.

  • Prices far below the market with pressure to pay quickly
  • Payment requested to a personal account or a company in a different country
  • Refusal of samples, inspections or video calls from the production site
  • Certificates that cannot be confirmed with the issuer
  • Very new company claiming many years of experience
  • Contact only through messaging apps, with no landline or verifiable address
  • Last-minute changes to bank details, product specification or Incoterms

One red flag does not always mean fraud, but it should pause payment until it is explained and verified.

Questionnaire

Supplier due diligence questionnaire.

Send these questions to the supplier and ask for supporting documents with each answer:

  • Legal name, registration number and registered address
  • Names of directors and main shareholders
  • Are you the manufacturer? If not, who manufactures the product?
  • Production capacity per month for this product
  • Certifications held, with certificate numbers and issuing bodies
  • Three customer references we may contact
  • Countries you currently export to
  • Bank name and account holder name for payments
  • Have the company or its owners ever been subject to sanctions, debarment or criminal proceedings?
  • Your anti-bribery and labour-standards policies

Compare the answers with what you find independently. Differences are often more telling than the answers themselves.

FAQ

Supplier due diligence questions.

What is supplier due diligence?

Supplier due diligence is a documented review of a supplier's identity, ownership, legal and sanctions status, financial standing, capability and track record, carried out before you rely on that supplier.

When should I do supplier due diligence?

Before the first order, before paying any deposit, before sharing confidential designs, and again when there is a major change such as new ownership, a new production site or a request to change bank details.

How detailed should the checks be?

Match the depth to the risk. A small trial order from a well-known supplier needs basic checks. Large orders, new countries, regulated products or public-sector contracts need the full checklist and documentary evidence.

Is there a supplier due diligence questionnaire template?

Yes. The questions in the questionnaire section of this page can be sent to suppliers as a simple supplier due diligence questionnaire. Ask for documents that support each answer.

Can someone do supplier due diligence for me?

Yes. Caledon Peak runs supplier vetting and due diligence for buyers and reports what is verified, what is only claimed and what remains open.

This checklist is general guidance, not legal advice. Requirements differ by country, sector and contract.

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