We talk about this every single day here at the office. We question how companies get hooked into heavy financial losses or find themselves in a complicated bind. The answer almost always follows the same pattern: assuming you know enough about your customer.
With proactive due diligence—and the backing of the Fruit & Vegetable Dispute Resolution Corporation (DRC)—you can protect your produce business from unnecessary risk. Whether you are a seasoned veteran, a brand-new member, or evaluating how to safeguard your next transaction, make these core steps a part of every trade:
1. Verify DRC Membership First
Is your customer or prospect a DRC member? If you aren’t sure, treat it as an immediate red flag. Visit our website to search our public member list, or contact our office directly if you need help. (Non-members can take advantage of our public tools, but full members enjoy seamless access to our team to run these checks instantly!)
2. Confirm Good Standing, Not Just Membership
Finding a name on our list is a great start, but are they in good standing? Members can reach out to our Trading Assistance Team to verify current standing and gain valuable guidance before shipping product.
3. Vet Your References Thoroughly
Never skip checking references. A reference is only as good as its reputation; many firms discover too late that a provided reference is nonexistent or unreliable.
4. Confirm Who You Are Actually Dealing With
Verify that anyone contacting you on behalf of a company is an employee or authorized representative—not an unverified intermediary.
- Confirm their identity through the company’s website, staff directory, or member portal.
- Contact the company directly using official contact information.
- Ask to be connected through the company’s switchboard or internal extension
- If you are a Blue Book Member, check their Blue Book Verify Tool, which confirms the identity of potential trading partners.
5. Look Into Blue Book Services
Is your trading partner listed and rated in Blue Book Services? If not, ask yourself why. Unlisted firms may be brand new or handling minimal volume. Listed and not rated can also be a red flag.
6. Check: The Perishable Agricultural Commodities Act (PACA)
If your trading partner operates in the United States, consult the PACA database to review the license status of each company, including trade name(s), branch location(s), principal(s), and other license related information.
7. Dig Deeper into Credit Ratings
Don’t assume an unrated listing means business as usual. It often means the company isn’t ratable or lacks enough file history to establish a score.
8. Match the Paperwork
Do the phone numbers, addresses, personnel, and exact company names match official records? Discrepancies are a major warning flag.
9. Insist on Arbitration Agreements
If you are doing business with a non-member, do they at least have a DRC arbitration agreement in place? Without one, you leave yourself exposed to high costs and legal vulnerabilities if challenges arise.
10. Keep Clear, Detailed Records
In a dispute, proper documentation is everything. Always retain copies of your purchase orders, invoices, inspection reports, and written communications. Having a clear paper trail makes resolution through the DRC much faster and smoother.
Don’t Face Trade Disputes Alone
Time and again, experience shows that many disputes could easily have been avoided by checking with the DRC and practicing a little upfront due diligence before the sale. Everybody takes a calculated chance occasionally, but navigating the produce industry without a risk mitigation partner is a gamble your bottom line shouldn’t have to take.
Not a member yet?
Discover how a DRC membership pays for itself the very first time a dispute is avoided. Visit our website to learn more about membership benefits, or contact DRC’s Member Services today.
