Choosing the wrong supplier is rarely apparent at the outset—it usually only becomes clear after a PO is in progress: delayed deliveries, inconsistent specifications, or worse, the company turns out not to be as claimed. For procurement teams, verifying suppliers before sending an RFQ or signing a contract is not an optional step—it's what differentiates smooth procurement from problem-ridden procurement. Here is a practical checklist.
1. Company legality and identity
The most basic step: ensure the company is officially registered. Request and check basic legal documents—NIB (Business Identification Number), company NPWP (Taxpayer Identification Number), and articles of incorporation if relevant. Match the company name, address, and business field listed with what they claim in initial communications. Suppliers who are reluctant or slow to provide these documents should raise a red flag.
2. History and track record
Find out how long the company has been operating and who their previous clients were (if they can be disclosed). A newly established company doesn't automatically mean it's risky, but it requires deeper verification on other points below. Also, check their digital footprint: profiles in business directories, reviews, or news coverage—consistency of information across sources is a good sign.
3. Production capacity and scale suitability
The right supplier is not always the largest—but one whose capacity matches your order volume. Ask about monthly/annual production capacity, realistic lead times for the volume you need, and whether they have handled orders of that size before. Small suppliers forced to handle orders far beyond their capacity often result in delays.
4. Relevant certifications and compliance
Depending on the industry and type of procurement, request relevant certifications: ISO, TKDN certificates (see our TKDN guide if your project involves government/SOE procurement), distribution permits, or OHS certifications depending on the product type. Do not accept verbal claims—request copies of documents and verify their authenticity, for example, through official registration numbers.
5. Quality consistency—request samples or visits
If possible, request product samples before placing a large order, or schedule a visit (in-person or virtual) to the production facility. Suppliers confident in their quality are usually open to these requests. Also, pay attention to their internal quality control processes—are there written standards, or does quality depend entirely on manual checks at the end?
6. Clarity of pricing and shipping terms
Reliable suppliers provide clear pricing details—not just a final number, but a justifiable structure: unit price, shipping costs, and who bears what (see our Incoterms guide). If an offer is significantly cheaper than competitors without a reasonable explanation, dig deeper before signing the PO.
Warning signs to watch out for
Avoiding providing legal documents or providing inconsistent versions across requests.
Having no verifiable physical address, or operating only through personal numbers without clear company identification.
Pressuring you to pay full upfront without an official contract or invoice.
Prices significantly below market without a reasonable explanation (could mean lower material quality, or even fraud).
Making this verification easier
Manually screening suppliers one by one—especially when you need to compare several candidates—is time-consuming. If you need more detailed checking steps, we have discussed them separately in 10 ways to verify suppliers before sealing a deal. The checklist above answers the question "which supplier to choose"; that article answers "how to ensure their claims are true".
Bring this framework to your next procurement. Download our free B2B Procurement Guide 2026 for a complete framework for safely selecting, verifying, and negotiating with suppliers—or explore company listings on ID Industri by industry category to start screening.