AI Helps You Vet Suppliers Without Getting Scammed

End-of-lesson check

15 questions · take it digitally for instant feedback at tendril.neural-forge.io/learn/quiz/end-builders-business-AI-supplier-sourcing-questions-r11a9-teen

1. What is the main benefit of using AI when vetting suppliers?

   1. AI replaces the need for any human verification of suppliers
   2. AI can instantly find and list the questions that experienced buyers always ask suppliers
   3. AI guarantees the supplier is legitimate and will ship your order
   4. AI will automatically place orders for you once you approve

2. What does MOQ stand for in supplier negotiations?

   1. Maximum Order Quantity
   2. Monthly Order Quote
   3. Marketing Order Question
   4. Minimum Order Quantity

3. What does 'lead time' mean when ordering from a supplier?

   1. The length of the product warranty
   2. The time it takes for your payment to process
   3. The date by which you must pay the supplier
   4. The time between placing an order and receiving the goods

4. What does FOB mean in shipping terms?

   1. Fixed Order Base — the standard price for an item
   2. Free On Board — the seller pays until goods are loaded onto the ship
   3. Fast Order Button — a quick way to reorder
   4. Freight On Balance — payment is due after goods arrive

5. Why is it important to order samples before placing a big order?

   1. Samples are required by law for all imports
   2. Samples let you check quality and verify the product exists before spending a lot of money
   3. AI won't work unless you order samples first
   4. Suppliers give big discounts just for asking

6. What are 'red flags' when evaluating a supplier?

   1. The supplier's warehouse location
   2. Warning signs in communications or offers that suggest the supplier may be dishonest
   3. The supplier's company logo color
   4. The supplier's years in business

7. What is 'due diligence' in supplier sourcing?

   1. The research and verification steps you take to confirm a supplier is legitimate before doing business
   2. A quick email check before ordering
   3. A legal document suppliers must sign
   4. Paying the supplier as quickly as possible to build trust

8. After AI gives you a vetting checklist for a supplier, what should you still do yourself?

   1. Ask AI to make the final decision
   2. Order samples and verify the supplier is real before placing big orders
   3. Nothing — AI handles everything
   4. Wait for the supplier to contact you first

9. A new supplier sends you an email asking you to wire money immediately to 'secure the best price.' What should you do?

   1. Wire the money right away to get the deal
   2. Ignore the email completely and never contact them again
   3. Use the AI-generated questions to vet them first, then decide
   4. Post about them on social media immediately

10. Why might a supplier refusing to send product samples be suspicious?

    1. It could mean they don't actually have the product or it's not as described
    2. Samples cost the supplier too much money
    3. AI requires samples before working
    4. Sample requests are illegal in international trade

11. What is the purpose of a supplier vetting checklist?

    1. To quickly place an order without thinking
    2. To replace the need for contracts
    3. To ensure you ask all the important questions and verify key information before paying
    4. To calculate shipping costs automatically

12. You're sourcing phone cases and need a vetting checklist. What should you ask AI to help you create?

    1. Questions to ask suppliers about their production capacity, sample policy, and payment terms
    2. A list of fun phone case designs
    3. A marketing brochure for phone cases
    4. A list of the cheapest phone case suppliers

13. What is a key difference between what AI can do and what you must do when vetting suppliers?

    1. AI places orders; you just watch
    2. AI generates the questions; you must ask them and verify the answers
    3. AI can verify samples physically; you just read about them
    4. AI decides if the supplier is safe; you have no say

14. Why is wiring money to a supplier without vetting them especially risky?

    1. Wire transfers are always expensive
    2. Suppliers prefer wire transfers because they're more secure
    3. The money is extremely difficult or impossible to recover if the supplier is a scam
    4. Wire transfers take too long

15. Which of the following would be a red flag in a supplier email?

    1. The supplier asks about your target price and order volume
    2. The supplier offers a detailed product catalog with specifications
    3. The email includes the supplier's physical address and phone number
    4. The supplier insists on only wire transfer with no way to verify them