Question

Pertaining to procurement. What are the questions that you would want to ask before entering into a business relationship, while performing due diligence with sellers?

Answer 1

Below are some of the important points to be highlighted before entering into a business relationship, while performing due diligence with sellers.

• Checking the past record of the supplier on reliability.
• Auditing the resources available and processes followed in maintaining the quality of supplied goods.
• Clearly stating the scope and objectives of the relationship.
• Drafting exit clause carefully in order to protect both parties from the damages.
• Negotiating on cost and quality as per company requirement and standards.