ASG Supply Chain Advisory
Pre-Deposit Supplier Verification
How ASG examines a supplier — before our client pays the deposit. Four checks. One verdict. Forty-eight hours.
Checks
Turnaround
No Commitment
The 4-Check Diagnostic Framework
Every supplier engagement starts with four independent checks. Each check produces a pass or fail — with evidence, not opinions. This is the same framework we use at Canton Fair stands, factory visits, and remote verifications.
Identity
Who is the supplier? Are they really a factory — or a trading company wearing factory clothes?
Cost
Is the quote real? We decompose FOB into 6 cost lines and benchmark against independent factory quotes.
Compliance
Can it legally sell? Four certificate questions asked before the deposit — not after customs holds your shipment.
Risk
What could go wrong? Five written controls — each tied to a specific risk, each backed by real files.
Step 01
Identity Check — Who Is the Supplier?
Your supplier’s storefront says “factory.” The business licence says something else. We cross-reference three independent sources before you wire any deposit:
- Business licence — does the registered scope include manufacturing (生产/制造)?
- Social-security registry — how many workers are actually enrolled? A 40× gap between claim and reality is a red flag.
- Registry filing record — does the factory entrance match the registered address?
Real Case Finding
Storefront claims: 200+ workers
Social-security registry: 5 people — a 40× gap
Verdict: A trading company dressed as a factory. The deposit would buy office services, not production capacity — and when quality fails, the “factory” has no assets to claim against.
Step 02
Cost Check — Is the Quote Real?
A price that looks good on paper can hide missing lines that surface after the deposit. We run three independent benchmarks:
- Independent factory re-quote — the same spec sent to unrelated factories. Their quotes set the workable band.
- Landed-cost model — your quoted price plus freight, duty, and destination charges. At your target selling price, is there margin left?
- Retail-price reverse check — from shelf price back through margin, logistics, and duty to a defensible FOB band.
FOB Cost Decomposition
| Material | 55–65% of FOB | ✓ |
| Labor & factory overhead | 15–20% of FOB | ✓ |
| Certification (CE/RoHS/UN38.3) | 3–5% of FOB | ✓ |
| Tooling & fixtures | Amortized | ✓ |
| Third-party QC | Per shipment | ✓ |
| Net margin | 8–12% of FOB | ✓ |
Illustrative ranges from composite engagements. Every line the benchmark expects is present — nothing deferred to a “re-quote” after the deposit.
Step 03
Compliance Check — Can It Legally Sell?
Four certificate questions — asked before the deposit, not after customs holds your shipment:
- Test basis — mass-production testing or sample-only? A sample certificate will not protect a shipment.
- Model match — certificate model vs your PO model, character by character. “Close enough” is not close.
- Certificate holder — who owns it? If a third party holds it, your supply can be cut off overnight.
- Category chain — battery goods need the full file: UN38.3 → MSDS → Battery test summary → CE → RoHS → EU authorized representative.
3 Gaps Found in This Case
A third party holds the certificate — your supply can be cut off overnight.
“Close enough” is not close — customs compares character by character.
Battery file chain broken — customs-hold risk for EU entry.
Any one of the three can hold the shipment at customs or trigger a platform takedown.
Step 04
Risk Check — What Could Go Wrong?
Every risk mapped to a written control. Not a verbal promise — a file you can hold. Five controls, one per risk type:
| ✓ | ASG Workflow | Step gates & reporting rhythm — where is my order, who watches it? |
| ✓ | Factory Audit Report | Scored checklist — including audits that failed |
| ✓ | QC Report | AQL sampling, photos, defect log |
| ✓ | PO Terms | QC-linked final payment · tooling ownership · delay liability |
| ✓ | NDA | Signed with every factory, by default |
Interception Log — Real Cases
Case A: The Printing That Came Off Under Test
The factory’s lasered label tape failed the adhesion test — the print peeled off. Caught at pre-shipment QC. The loss never reached the client.
✓ CAUGHT BEFORE SHIPMENT
Case B: Compliance Marks Printed Too Small
CE marking measured under the 5 mm legal minimum; the WEEE crossed-out bin under 7 mm. Caught before the cartons were sealed.
✓ CAUGHT BEFORE SHIPMENT
What You Get
A one-page diagnostic on your case — the traffic lights, top risks, and gap list. Free, no commitment.
Registry Verdict
Business licence check, social-security cross-reference, and a yes/no factory/trader call.
Cost Benchmark
Itemized cost sheet: what is included, what is excluded, and who pays for each line.
Certificate Audit
Compliance gap list, item by item — what must be fixed, by whom, and evidence of the fix.
Mechanism Fit
The five control files — workflow, audit, QC, PO terms, NDA. Including the audits we failed.
Run This Diagnostic on Your Own Supplier
Bring the supplier’s quote, certificates, and storefront link — plus one business card. That is the entire input list. Verdict within 48 hours.
Step 1
Send us the materials
Step 2
We run the four checks
Step 3
Verdict within 48 hours
3 Questions to Ask Any Chinese Supplier
Before you commit to any supplier, ask these three questions. If they hesitate on any one of them, you already have your answer.
1. Does your business licence include manufacturing?
Ask to see it. Check for 生产/制造 (shēngchǎn / zhìzào). If the scope only covers trading or consulting, you are dealing with a middleman — not a factory.
2. Is this certificate based on mass-production testing?
Sample testing protects nobody. If the certificate was issued on a pre-production sample, it does not cover the goods you will receive. Ask for the test report and check the batch/lot number.
3. Can the final payment wait for the QC report?
If they refuse a QC hold-point, ask yourself why. A supplier confident in their quality will never object to a pre-shipment inspection. The ones who push for full payment before QC are the ones who need the money to cover shortcuts.
