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Why Sourcing the Right Suppliers is Crucial
After identifying your products and target export markets, SMEs often overlook a critical step: finding reliable import suppliers.
Poor supplier selection can lead to:
Delayed shipments
Low-quality materials or products
Payment disputes
Increased operational costs
Using official trade data and verified sources, you can identify credible suppliers, reduce risk, and build a strong supply chain for both imports and your own export business.
Understand Key Trade Data Sources for Imports
DGFT Import-Export Data Bank (MEIDB)
Provides official Indian import data
Filter by HS code, product, country of origin, year, and value
Official link: or read Sumvaad Blog on MEIDB, here.
ITC Trade Map
Global trade data, including import statistics
Helps identify major suppliers, shipping countries, and trends
UN Comtrade Database
Worldwide trade statistics
Useful for benchmarking and cross-verification.
B2B Platforms
Alibaba, Global Sources, IndiaMART (for preliminary supplier identification)
Pro Tip: Always validate suppliers through official trade data first, then cross-check on B2B platforms.
Define Your Supplier Research Objectives
Before sourcing, clarify:
Which products or raw materials are needed
Required quality standards or certifications
Minimum and maximum order quantities
Preferred countries of origin
Example: For importing organic turmeric, find top 5 suppliers in India or nearby countries, ensure organic certification, and evaluate pricing and logistics.
Use HS Codes to Identify Suppliers
Start with HS Codes:
Always use the exact HS code from Post 6
Example: Organic Turmeric → HS Code 09103010
Filter Trade Data by Supplier Country:
DGFT Import data → select product HS code → import country → supplier company details
Analyze Supplier Volume & Consistency:
Check past 3–5 years of export/import volume
Focus on suppliers with consistent shipments and high export value
Why?: A high-volume, consistent supplier is more reliable for SMEs than a low-volume one, reducing risk of delays.
Evaluate Supplier Credibility
Check Official Registration
Supplier should be GST registered
Verify IEC code if they are exporters
Check Certifications
ISO, organic, or other quality standards
Matches your target market compliance requirements
Review Shipping & Payment History
Consistent delivery on time
Transparent payment terms
Cross-Check Online Reputation
Trade directories, customer reviews, LinkedIn company pages
Actionable Tip:
Maintain a supplier evaluation sheet:
Supplier Name
Country
HS Code
Annual Export Value
Certifications
Shipping Reliability
Score
Shortlisting Suppliers
Focus on top 2–3 suppliers first
Start with pilot orders before scaling
Negotiate & Validate Terms
Request Samples
Check quality, packaging, and compliance
Discuss Pricing
Include freight, insurance, and customs duty estimates
Agree on Payment Terms
Letter of Credit (LC), advance payment, DA/DP
Confirm Logistics
Delivery time, shipping method, documentation
Example: A SME importing herbal teas from Sri Lanka confirmed LC payment terms and DHL shipping for the first 500 kg order.
Actionable Exercise for SMEs
Pick product(s) to import
Identify HS code(s) from Post 6
Use DGFT import data to shortlist top suppliers
Verify certifications, registration, and shipment consistency
Score suppliers and select top 2–3 for pilot orders
Place sample or small quantity orders to test reliability
Common Pitfalls to Avoid
Tracking Supplier Performance
Keep a supplier scorecard: delivery timeliness, quality, communication
Update master supplier sheet regularly
Rotate suppliers if performance drops
Pro Tip: SMEs that track supplier performance reduce delays and improve customer satisfaction for exports.
With suppliers identified and verified, the next step is planning your first export operations.