Top 5 Tips for Choosing a Product Sourcing Company Your Go-To Guide for Supplier Risk Mitigation | Page 5

underpinned by law. This is complex where legal systems are less robust or less
developed than in the West. Some key points to consider in this regard:
a. Legal Jurisdiction
In some Countries it is difficult to enforce a contract that has been breached. For
example, it is not easy to enforce a ​ purchase agreement​ against a Chinese
factory governed by US law. And even when there is enforceability present,
some legal systems are less than effective when it comes to claiming for any
breach of contract. ​ Make sure you take legal advice in this regard*​ .
b. Non-Disclosure Agreements
These are commonly used to ensure that there is protection against any
company IP being shared or used. However, the best protection is to make sure
that any NDA covers off Non-use, ​ Non-disclosure and non-circumvention​ . These
are commonly referred to as NNN agreements.
c. Communication Requirements
At the outset, be clear as to the expectations. Set up a critical path with key
milestones and agree with your supplier what is expected of them as part of the
management of the information flow. For example, make sure that there is a
clear specification sheet that provides product details, colourways, packaging
requirements etc. This eliminates the risk of ​ timing issues​ or mistakes
executing the product quality​ .