Sourcing agent conflicts: what should I ask?
Ask for a written declaration covering supplier ownership links, referral payments, rebates and preferred suppliers before approving a shortlist. Require reasons for each recommendation, a named reviewer and written updates when relationships change. Put these questions to Cambridge China Bridge.
Ask for a project-specific declaration
A statement that an agent is independent tells you little about a particular factory recommendation. Request a dated declaration naming your project, the suppliers being considered and the person responsible for checking the answer. Ask them to distinguish no relationship from a relationship they have not yet checked. For disclosure timing, see our guide to agreeing factory identity disclosure.
The agent comparison guide covers staffing and commercial models. This declaration adds the relationships behind the shortlist. First confirm whether the business is advising you as an agent or selling you goods through the contracting guide, so your questions match its role.
Cover ownership and benefits beyond the fee
Ask whether the agent, its owners, staff or subcontracted sourcing contacts own an interest in a proposed supplier, share owners or directors with it, or have family or other business links that could affect the recommendation. Request the entities involved, the nature of the link and who benefits.
Include referral fees, commissions, rebates, discounts retained by the agent, reciprocal referrals and non-cash benefits. Ask who pays whom, what triggers the benefit, how it is calculated and whether it changes your quote. Cover promised benefits as well as payments already received. Use the sourcing cost guide for the wider charging model.
Test why a supplier is preferred
Ask what preferred supplier means: previous satisfactory orders, a commercial arrangement, shared ownership or simply a factory the team knows. Request the selection criteria and the evidence supporting the recommendation for your specification. Familiarity can help sourcing, but it should be explained.
Ask which alternatives were considered and why they were excluded. Compare capability, sample results, inspection findings and quote scope against the same brief. If the search only covered an existing supplier network, ask the agent to state that limitation rather than present the shortlist as a wider market comparison. For reviewing the agent's work, see our guide to assessing sourcing agent performance.
Send wording the agent can answer
Suggested request: “Before we approve the shortlist, please declare any ownership, family, business, referral or preferred-supplier relationship that could influence your recommendations. Include benefits to your company, owners, staff and sourcing subcontractors. For each supplier, state the relationship, beneficiary, payment basis, effect on our quote and proposed handling. Please confirm expressly where there is none, identify anything unverified and name the person approving this declaration.”
Add: “Please explain why each supplier fits our brief, what alternatives you considered and any limits on your search. Send a dated update before we approve a replacement supplier or commit to an order if a relationship or benefit changes.” Keep the response with the shortlist and quote, rather than relying on a call.
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Record how the conflict will be handled
For each declared relationship, record the concern, supporting evidence, proposed control, reviewer and your decision. Possible controls include comparison with an unrelated supplier, removing an interested person from the recommendation, or arranging independent inspection. Record whether you accept the supplier, request more evidence or exclude it. Disclosure alone does not establish that the recommendation suits your brief.
Government guidance on reducing bribery and corruption risk recommends keeping records of avoidance, training and mitigation procedures. Keep the declaration, comparison evidence and approval together as a practical project record. If a link emerges later, pause the affected approval, request an updated declaration and review the recommendation before proceeding.
Frequently asked questions
What if my sourcing agent says there are no conflicts?
Ask for a dated, project-specific confirmation covering ownership, personal links, supplier benefits and preferred arrangements. Request the name of the person who checked it and a commitment to update it.
Should I reject a factory owned by my sourcing agent?
Assess the disclosed link alongside capability and commercial evidence. Ask for an unrelated comparison and independent review where useful. If the agent will not explain the link, pause approval.
Does no sourcing fee mean no supplier commission?
The fee statement does not answer that question. Ask separately about supplier-paid commissions, rebates, referrals and other benefits, including who receives them and whether they affect your quote.
When should a conflict declaration be updated?
Request an update when the proposed supplier, ownership, referral arrangement or benefit changes, and before approving a replacement supplier. Keep previous declarations so the decision history remains clear.