How can I check a packaging supplier’s quality complaints and returns?
Ask the supplier for its complaint and return log, then compare it against the records of the business you are buying. Look at what was wrong, how long a fix took, and who paid. Speak with a few of its other customers, and inspect a recent delivery yourself rather than relying only on what the supplier reports.
Begin inside the business you are considering. Ask for the file of complaints it has raised with this supplier, along with credit notes and replacement orders. That shows how problems were really settled, which a sales pitch will not.
Look for patterns. Are the faults about crushed corners, wrong print, colour drift or late delivery? One-off slips are normal, while the same issue returning suggests a process problem. Notice who absorbed the cost and how long it took to get a credit. Next, ask the supplier how it tracks defects and whether it will share its own log. Request names of other customers and call one or two. Ask them what happens when something goes wrong. Also ask what the business does while a faulty batch is being replaced. Whether it keeps spare boxes, borrows from another supplier or simply apologizes to its own customers tells you how much the supplier’s problems become yours.
Finally, look at what the business did when a delivery failed. Did it hold safety stock, switch suppliers, or pass delays on to its own clients? That tells you how exposed it is. Your lawyer can read the supplier terms on returns and liability, and your accountant can check how returns appear in the margins.
Key takeaways
- Ask for the complaint log, credit notes and replacement orders.
- Look for repeating faults, who paid, and how fast fixes arrived.
- Call other customers of the supplier and inspect a recent delivery yourself.
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Sources
This answer is checked against primary sources. Links were last confirmed on the dates shown.
- 01Business Development Bank of CanadaGovernmentHow to conduct due diligence when buying a business
- 02Business Development Bank of CanadaGovernmentWhat are the steps to buying a business?
- 03Business Development Bank of CanadaGovernmentHow to diversify your supply chain
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