MFGx-The Global Manufacturing Community: Avoiding fraudulent behaviour on MFG? ...

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8 Replies Last post: Jul 2, 2008 10:22 PM by bryan

guy.bb

2 posts since
Dec 13, 2007

Mar 4, 2008 4:29 AM

Avoiding fraudulent behaviour on MFG?

guy.bb

2 posts since
Dec 13, 2007

1. Dec 23, 2007 2:15 PM

in response to: guy.bb

If anyone here could so kindly clarify a few tidbi

If anyone here could so kindly clarify a few tidbits,

I was wondering how particular MFG was in selecting their suppliers as I have read some pretty frightening stories about sites where the 30% run & scheme are quite common. Supplier gets the 30% and then hits the road in a flash......

I most recently joined MFG to place an order for some items which I needed built. I chose to try MFG as the benefits for savings were supposed to be quite apparent.

I started by placing a very insignificant order, which only worked out to be a few hundred $$$ deposit, just enough to test the honesty of a supplier when the time came. What I found quite amazing was the speed at which some of these suppliers responded to the RFQ`s and awards. The follow through had vanished once the 30% was received? I placed % deposit on the work to be done as the supplier had already shown good faith by working on the items prior to receiving the 30%, I saw pics.

So as you can see I tested the waters for a small amount and have had limited communication with my supplier. I have a few points of concern....

Is the star system really reflective of the supplier, honesty, delivery,quality etc....?
Can I truly base my choice on this system or can a four star be dishonest?
Are suppliers systematically banned form MFG if they commit outright fraud? Like receiving money and never delivering goods? Is it clear or can suppliers stick around while systematically abusing the buyer?

Does MFG thoroughly check out all suppliers prior to giving them access to the buyers?

Is it a familiar pratice for overseas suppliers to outright lack communicating with their respective buyers once the depot is in hand?

Are the waits frequent and common?

When would be the best time to actually call a deal dead from the time the 30% has been received and the communication non existent?

Thanks in advance to anyone willing to give me a hand.

Rgds,

CDNQC

63 posts since
Mar 8, 2007

2. Dec 25, 2007 7:47 AM

in response to: guy.bb

RE: Avoiding fraudulent behaviour on MFG?

Great questions, CDNQC.

As for the first part, could you explain a bit more? Not sure if you were victimized by a "30% run & jump" that you met online or if a lack of communications with a current supplier has you concerned.

MFG.com does interview all prospective suppliers. But with any online system (like eBay) or in life (police, doctors, sales reps, and buyers, too) there are exceptions, or those that can be less than genuine. The ratings system on MFG.com allows the community to police itself. Participants on MFG.com are encouraged to communicate with each other to check the authenticity and veracity of both buyers and suppliers. Like anywhere else, suppliers are sometimes late, sometime less communicative than the next, and they sometimes don't deliver when they say they will. And, every so often, someone will act in a less than honest fashion.

MFG.com takes those instances very seriously. I encourage you to contact your representative at MFG.com to discuss any issues you're having with an active supplier. I also encourage you to use the rating system on MFG.com to let the community know if a supplier has performed very well or less than so.

no1toolmkr

62 posts since
Mar 9, 2007

3. Jan 23, 2008 10:07 PM

in response to: guy.bb

RE: Avoiding fraudulent behaviour on MFG?

I think many of the suplyers are simply new at business and new at MFG as well.
new businesses may lack the comunitive skills or resources your looking for.
I certainly hope everyone helps in pointing out disingenuine suplyers and buyers...
every effort must be made to comunicate the business at hand across the land or
around the globe, comunication is your best chance for success in any forum.
These are the very issues and barriers MFG can help you with.
remember, the concept of mfg quote and the global market place within it is still
younger than many business relationships. Time will allways prevail as the experience
of how you and a suplyer will work out, however MFG can only help you make great
decisions with the tools they provide and not make them for you.
ETR

peter

34 posts since
Apr 11, 2007

4. Mar 4, 2008 4:29 AM

in response to: guy.bb

RE: Avoiding fraudulent behaviour on MFG?

CDNQC - We've had good success with MFG, but have also started out slow as you did. ("I started by placing a very insignificant order, which only worked ...")
We have made it a point not to simply abandon our current supplier base for cheaper service, product etc. When we hit a need for more options than we already have, we expand into MFG. This need to overcome a challenge forces us to rely heavily on communication with the new suppliers, avoiding lack of communication that could lul us into a hasty contract, which is where I believe these types of problems you mention come from. If you're really worried, ask for references - they want to give them to you.

texashorseman

2 posts since
Jun 3, 2008

5. Jun 25, 2008 2:32 PM

in response to: guy.bb

Re: If anyone here could so kindly clarify a few tidbi

I have wondered the same thing only I am on the other side. We would never ask for a deposit, if a company does not have a good credit rating why bother. To my point, I have wondered if buyers were not using the site only to shop price. We have been producing machined parts for over 30 years, if we were price gouging how could we have sustained this king of longevity? I have over 25 quotes on my desk as we speak that were to be awarded in mid to late may. Not a word, zero feedback from suppliers even after numerous calls emails you name it. I have to believe that it is working both ways abused by both. The one thing I have come to a conculsion on is the only people making money from this site is the site itself. A good company with good sales people don't need this site. We were here long before MFG.com and will be here more than likely long after.

no1toolmkr

62 posts since
Mar 9, 2007

6. Jun 25, 2008 4:16 PM

in response to: texashorseman

Re: If anyone here could so kindly clarify a few tidbi

I've probably fielded over a hundred callers about MFG from perspective buyers and suplyers. some reffered by MFG and some found me on their own.

I have a pretty standard reply. MFG is what you can make of it. There are so many RFQ's from buyers its staggering. Be very picky about WHO you quote.

Be as proactive about WHO you quote as you are how much you quote. So look for a good match for YOU and don't waste your time quoting a whole bunch.

You don't need a hundred buyers you only need a couple good ones, so look for them and ignore the rest.

I've run into the buyers that are just looking for pricing and I've got calls from very large global companies that have never placed an RFQ on MFG and don't intend too.

I call these guys lurkers and by far and wide have been the most lucrative customers I've found from MFG.

I think its a pretty sweet way to avoid having to quote a ridiculous amount of work and pay sales people.

I'm pretty proud of my customer base and it realy doesn't need to be any bigger, I just love the billboard effect though and the lurkers that find me.

Because if enough work comes to me, then I don't need to bother to go looking for it.

ETR

info

27 posts since
Mar 8, 2007

7. Jun 25, 2008 6:53 PM

in response to: no1toolmkr

Re: If anyone here could so kindly clarify a few tidbi

I agree with Eric. We used MFG judiciously - it takes a lot of work but if you balance it against the amount of time and effort it takes to drum up outside sales...well...seems to balance out okay - but ONLY if you, the supplier, do your homework. I got burned by one customer but that was my own fault. I did most of my due diligence but the one part I didn't cost me money.

Awhile ago I put together a Customer Information form for MFG - if that's extant, USE IT! If they don't have it, request credit info. I don't do business with companies who don't provide credit info - ever! And I make those calls! And sometimes I check sources beyond what they provide, especially if the job is huge (sometimes large companies can be worse than the small ones in terms of Net 30).

When I supplied via MFG I would check out websites, call other bidders....do a quick google search to see if they'd come up on any negative lists, that sort of thing. If they're D&B, check that out, too.

As far as the awards process - all you can go on is the MFG graph. If they are not awarding via MFG then you know your chances are slim. There's lots of ways to verify, as best you can, what the company's ethos is - MFG provides some of them but you have to do the rest yourself, just as you would with any new customer.

bryan

2 posts since
Apr 26, 2007

8. Jul 2, 2008 10:22 PM

in response to: guy.bb

Re: Avoiding fraudulent behaviour on MFG?

As Sales Manager of the North American Buyside, I hear this question a lot. MFG.com is a great tool, but it still is part of the larger world.

Don't extend terms you wouldn't normally extend.

Don't blindy award to the lowest quote without talking to the supplier.

Above all...talk to each other.

MFG.com makes it possible to award millions of dollars to people around the globe without ever sending an email or picking up the phone. This does not mean that it is the best way to do business.

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Mar 4, 2008 4:29 AM

Avoiding fraudulent behaviour on MFG?

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