How do I check that an irrigation firm’s controllers and valves come from reliable suppliers?
Ask for the supplier list, how long each relationship has lasted and what share of purchases each supplier provides. Then look at warranty claims, delivery delays and substitute options. A reliable supplier delivers on time, stands behind faulty parts and is not the only choice.
Request purchase records and group them by supplier. Notice whether one source supplies most of the controllers and valves. If so, ask what happens if it raises prices or stops selling to the company. Do this early in the process, because a late surprise is costly.
Next, check quality. Ask how often parts failed in the field and who paid for the repair. A business that has been replacing faulty valves at its own cost may be losing money without noticing. Look at warranty claim records and how quickly the supplier responded. Ask whether any supplier has ever been late during peak season, and how the company managed the gap that left.
Find out about terms. Does the company buy on credit, hold an account in the owner’s name or receive a special trade arrangement? Ask the supplier whether those terms continue for a new owner. Finally, ask technicians which brands they trust and which cause callbacks. They often know more than the owner. Compare their answers with the purchasing records, and ask whether a second supplier could cover the gap. Keep copies of key supplier correspondence so that you can confirm what was promised.
Key takeaways
- Group purchases by supplier and see how concentrated they are.
- Review failure and warranty records, and who paid for replacements.
- Confirm whether supplier terms carry over to a new owner.
- Ask technicians which brands they trust and which cause callbacks.
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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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