Downstream is what we call:
- searching for alternative sources of supply
- qualifying suppliers by scorecard methods
- getting the product in your warehouse
- validating the new supplier as trustworthy and reliable
Downstream steps:
- Defining the new supplier requirements together with our customer (price, availability, quality, etc...)
- Skimming the world wide market for potential suppliers
- Assessing potential suppliers
- visits to the factory
- background checks done within the local authorities of the country of origin
- samples for the required products
- Short list of suppliers with best options
- Negotiating the terms and conditions
- Developing the legal framework – contract and other legal aspects (taxes and procedures within the country of origin)
- Overseeing the first shipments (having a representative at the factory to oversee loading, ensure that all necessary paperwork is done and take care that the shipment goes through customs)
- Validating the new supplier once the first shipments are done