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