Supplier Due Diligence in Bangladesh

Supplier due diligence is a structured review of a supplier’s legal standing, financial health, operational capacity, safety, labour practices and environmental compliance before and during a business relationship.

KYB confirms that a company is registered, licensed and owned by identifiable people. Supplier due diligence adds capacity, finances, safety, labour and environmental checks, usually with a site visit. See vendor onboarding and KYB.

A document review of licences, permits and payroll records, a floor walk of production areas and fire exits, private worker interviews, a capacity check and a closing meeting where findings are shared.

Factories often hold amfori BSCI, Sedex SMETA or WRAP audits, and garment factories may be covered by the RMG Sustainability Council. We check that these reports are genuine, current and cover the right site.

Yes. Interviews are held privately, without managers present, and only with the worker’s consent. Answers are reported without names.

We review audited accounts, bank references, tax payment status, major customers and any court cases, to judge whether the supplier can fund your order and stay in business.

We compare real capacity on site with the volumes the supplier has promised. A large gap, or production found at another address, is a strong sign of hidden subcontracting.

A desk review usually takes a few working days. On-site audits are scheduled with the factory and reported soon after the visit. Timing depends on the level of review.

Yes. We agree a corrective action plan with the supplier and can return to confirm that the actions were completed.

Laws such as Germany’s Supply Chain Due Diligence Act and the EU Corporate Sustainability Due Diligence Directive require many large buyers to assess human rights and environmental risks in their supply chains. Scope and dates vary, so check with your legal adviser.