Supplier Verification

Supplier Verification can be relevant when:

• A new supplier has been identified through a sourcing project
• The buyer has found a supplier independently and wants additional verification
• The supplier claims to be a manufacturer but the factory relationship is unclear
• Company, quotation or payment information contains inconsistencies
• An important order requires additional supplier due diligence before commitment
• Available documentation does not sufficiently support material supplier claims
• The procurement team needs a documented basis for deciding whether deeper assessment is required

Verification should be proportionate to the supplier, transaction and procurement risk. Not every supplier requires the same scope.

The verification scope is defined around the supplier and the procurement requirement.

Relevant checks may include:

• Legal company name
• Registration information
• Active company status
• Registered address
• Legal representative
• Stated business activities
• Ownership information where available and relevant

The purpose is to establish the identity of the entity the buyer may be dealing with and identify material inconsistencies requiring clarification.

Relevant information can be compared across available commercial documents and communications, including:

• Quotation
• Proposed contract information
• Invoice or pro forma information where available
• Payment details
• Legal company identity
• Website and domain information
• Supplier communications

Differences in company names, addresses, bank or payment information, or other material transaction details can be documented for clarification.

A company presenting industrial products does not automatically establish that it manufactures them. Where direct manufacturer status is relevant to the procurement decision, ArcMoni can seek evidence supporting the relationship between the contracting or selling entity and the claimed production facility. Where the relationship remains unclear, that limitation is documented rather than treated as confirmed manufacturer status.

Depending on the agreed scope and available evidence, information concerning the claimed manufacturing operation may be reviewed, including:

• Production facility information
• Relevant manufacturing processes
• Equipment information
• Examples of relevant production
• Available quality-control information
• Evidence of production activity

Documentary or remote evidence has limitations. Where the buyer requires deeper confirmation of factory capability, an on-site Supplier Audit or factory assessment may be the more appropriate next control.

Relevant certificates and supporting documents can be reviewed within the verification scope. Where an appropriate independent source is available, document details may also be cross-checked. A certificate should not be treated as proof that a supplier can meet a specific RFQ unless the certificate and its relevance to the requirement have been appropriately established.

A central part of the verification process is separating different levels of evidence.

• VERIFIED — The relevant point has been supported through an appropriate independent source or verification step within the completed scope.
• OBSERVED — The relevant point has been directly observed where an on-site activity forms part of the agreed scope.
• DOCUMENT REVIEWED — A document has been examined, but reviewing the document does not necessarily establish every underlying claim independently.
• SUPPLIER DECLARED — The information has been provided by the supplier but has not been sufficiently supported through independent evidence within the verification scope.
• NOT VERIFIED — Available evidence is insufficient to confirm the relevant point.

This classification helps prevent supplier statements, marketing material or unverified documents from being presented to the buyer as established facts.

• 1. Define the Verification Scope — The supplier, proposed transaction and procurement concerns are reviewed to determine which questions should be addressed.
• 2. Collect Relevant Information — Available company documents, quotations, supplier details, commercial information and supporting evidence are assembled for review.
• 3. Cross-Check Material Information — Relevant supplier-provided information is compared with available independent sources and other evidence within the agreed scope.
• 4. Identify Discrepancies & Information Gaps — Conflicting names, addresses, manufacturing claims, payment information, documents or other material inconsistencies are recorded. Information that cannot be sufficiently established is also identified.
• 5. Request Supplier Clarification — Where appropriate, the supplier can be asked to explain discrepancies or provide additional supporting evidence. A supplier response is documented as supplier-provided information unless the relevant point can be independently established.
• 6. Assess the Findings — Findings are considered according to their significance for the defined verification scope and procurement requirement. The purpose is not to convert every uncertainty into a pass/fail decision, but to make material findings and limitations visible to the buyer.
• 7. Issue the Supplier Verification Report — The buyer receives documented findings, unresolved matters and relevant next-control recommendations within the agreed scope.

Depending on the agreed scope, the Supplier Verification Report can include:

• Verification scope
• Corporate identity findings
• Commercial identity and transaction-consistency findings
• Manufacturer or factory relationship findings
• Manufacturing evidence reviewed
• Certificates and supporting documents reviewed
• Material discrepancies
• Supplier clarifications
• Information not verified
• Identified risk findings
• Evidence references
• Recommended next procurement controls

The report should make clear not only what was found, but also the evidence basis and relevant limitations behind the findings.

Supplier Verification is a decision-support step, not the end of the procurement process. Depending on the findings and the buyer's requirement, the next step may be to:

• Proceed with standard procurement controls
• Request additional supplier evidence
• Clarify commercial or technical discrepancies
• Conduct a Supplier Audit or factory assessment
• Arrange a sample or prototype
• Request additional technical review
• Adjust commercial controls
• Monitor production
• Conduct a pre-shipment inspection

The appropriate next control depends on the materiality of the unresolved issue and the procurement requirement.

Supplier Sourcing asks: Which manufacturers appear relevant to this procurement requirement and should be considered further? Supplier Verification asks: What can be established about a supplier that is already under consideration? A supplier may therefore be identified during sourcing and subsequently verified before the buyer proceeds to a more significant commercial commitment. Identifying a supplier is not the same as verifying or qualifying that supplier.

Supplier Verification primarily examines supplier identity, documentation and relevant evidence within the defined verification scope. A Supplier Audit or factory assessment goes further where on-site evidence is required concerning the manufacturing facility, processes, equipment or relevant controls. Documentary verification should not be presented as equivalent to direct observation of a factory. Where remote evidence is insufficient for the buyer's decision, an on-site assessment may be the appropriate next procurement control.

Supplier Verification can establish information about the company, documentation and relevant supplier evidence. It does not determine whether a component, material, machine or technical proposal satisfies the client's engineering requirements. ArcMoni can collect technical information and coordinate clarification, but final technical approval remains with the client or its qualified technical representative. The same principle applies to approval of drawings, equivalents and samples.

Supplier Verification reduces information uncertainty within the completed scope. It does not eliminate procurement risk. A verification assessment cannot guarantee future:

• Product quality
• Supplier behaviour
• Delivery performance
• Financial performance
• Manufacturing outcome
• Logistics performance

Supplier circumstances can also change after verification. Where material uncertainty remains, ArcMoni documents the limitation and can recommend an appropriate additional procurement control rather than convert incomplete evidence into a guarantee.

Supplier Verification can be requested for a supplier the buyer has already identified or added after a Supplier Sourcing project. Where broader support is required, ArcMoni can continue with agreed procurement activities such as commercial coordination, production monitoring, inspection and delivery coordination. This keeps verification connected to the procurement decision it is intended to support.

If you already have a potential supplier, send the available:

• Company name and registration details
• Website and contact information
• Quotation or commercial offer
• Proposed payment information where relevant
• Product or procurement requirement
• Available certificates and supporting documents
• Specific concerns or claims that require verification

ArcMoni can review the available information and define a verification scope appropriate to the supplier and procurement requirement.