Due Diligence
Part of Supplier due diligence
Identifying missing evidence in a supplier's claims
Turn supplier claims into checkable questions, identify evidence gaps and decide which points need resolution before ordering.
To find a gap in a supplier’s evidence, state the claim precisely, identify the order decision that depends on it and ask whether the material supplied covers that claim. Record what remains unconfirmed. A genuine document may answer a narrower question than the supplier’s statement.
Key facts about supplier due diligence in Australia
- ABN validityAn active ABN confirms registration but not commercial viability or production site.
- Product safety testingTesting a pre-production sample is generally insufficient under ACCC guidance without further quality assurance.
- Supplier claimsClaims like 'we are the manufacturer' require verification of entity, site, and production steps.
Turn an assurance into a checkable claim
“We are the manufacturer” does not say which business performs which steps at the proposed site. “We have supplied similar customers” does not say how similar those orders were. “The product passed testing” does not say which version was tested or how it relates to the goods you intend to buy.
Name the entity, product version, site or period at issue before reviewing a file of certificates, photographs and testimonials. Otherwise, receiving many documents can be mistaken for answering the question that matters.
Find the gap
For each material claim, ask:
| Question | What to record |
|---|---|
| Coverage | Does the material concern the right entity, site, product version or order? |
| Date | When was the activity observed, and has anything relevant changed? |
| Origin | Who produced the material, and can its origin be checked if the decision depends on it? |
| Limit | What does it exclude or leave unobserved? |
An active ABN can show that an Australian registration is current, but it cannot establish commercial viability or identify a production site. A reference for a standard item may not address a customised order. A factory image may show equipment without confirming where it is or who operates it. These illustrate limits of evidence, not findings about any supplier.
For goods to be supplied to Australian consumers, treat a product safety claim as material. ACCC guidance says safety testing a pre-production sample is generally insufficient without further quality assurance. Record whether the material offered concerns the version you intend to buy. Pass questions about applicable standards, test methods and reports to product compliance review.
Give each material gap an action
Keep one entry per claim: claim; material received; what it establishes; gap; consequence if wrong; next question or source; owner; decision date. A single “documents received” tick does not show whether the claim is supported.
Prioritise the next step by its consequence for the order. An unexplained invoicing entity, an unknown operator for a critical production step or an unsupported safety claim may need resolution before commitment. Mark each point open, resolved within a stated scope or not relied on. If the supplier revises a claim, retain the earlier wording and the explanation.
Choose a follow-up that addresses the particular gap: a corrected document, confirmation from its issuer, a relevant customer conversation, a defined site assessment or product-specific review. If the evidence cannot be obtained, decide whether you can change the order so it no longer depends on the claim, compare another supplier or wait. The decision record should show both what is supported and what remains an assumption.
