A key process was subcontracted and not disclosed
Updated 2026-09-01
Context
A buyer was qualifying a metal parts supplier who stated that all processes including surface treatment were done in-house. The buyer wanted that claim checked before placing a first order.
Assignment
Confirm the registered address is the production site, review the business licence scope against the processes claimed, walk the production floor end to end, and check whether any process leaves the site.
Observations
- · Machining, assembly and packing were on site and consistent with the equipment list provided.
- · There was no surface treatment line on site. Staff described the parts being collected twice a week and returned finished.
- · The business licence scope covered manufacturing and sale of the parts, not the surface treatment process.
- · The supplier named the subcontractor when asked directly, but had not mentioned it in the quotation or the capability list.
Outcome
The verification report recorded the subcontracted process as a fact, named the subcontractor, and stated that the buyer had not been told about it before the check. The buyer placed a reduced first order and added a written disclosure requirement for any process carried out off site.
Takeaway
In-house claims are the ones worth walking. If a process has no equipment on the floor, it happens somewhere else, and you should know where.
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