That's a major red flag and requires immediate, careful action. Here's a breakdown of why this is concerning and what you should do:

1. Quality Control Blind Spot: Testing is fundamental to ensuring raw materials, components, or finished products meet specifications, safety standards, and performance requirements. Without it, quality is pure guesswork.
2. Safety & Compliance Risks: This is the biggest concern. Products could be unsafe (fire hazard, toxic materials, structural failure, electrical shock), non-compliant with regulations (REACH, RoHS, FDA, CPSIA, etc.), or cause harm to end-users. This exposes you to massive liability lawsuits, recalls, and regulatory fines.
3. Reputation Damage: Selling unsafe or non-compliant products will destroy your brand's reputation and customer trust, often irreparably.
4. Warranty Claims & Returns: Undetected defects will inevitably lead to a flood of warranty claims, product returns, and associated costs.
5. Inconsistent Performance: You have no guarantee that the next batch will be like the one you saw. Lack of testing means inconsistent quality is highly likely.
6. Hidden Costs: The cost of recalls, lawsuits, reputational damage, and fixing problems after they reach customers will dwarf the cost of testing.
7. Lack of Accountability: How can they guarantee anything without proof? It's an empty promise.

Immediate Actions to Take:

1. Don't Accept Shipments (Yet): If you haven't received goods, do not proceed without resolution. If you have received goods, isolate them and do not sell/use them until resolved.

2. Get Clarification (Politely but Firmly):

   • Ask Specific Questions: "Could you clarify what specific types of testing you don't perform?" (e.g., Incoming Material QC, In-Process, Final Product, Safety, Regulatory Compliance, Performance?)
   • Understand Their "Why": "What is your process for ensuring quality and compliance without testing?" (Listen carefully - their answer will reveal a lot).
   • Demand Evidence: "What documentation do you provide to substantiate claims about material composition, safety, or performance?"

3. Assess the Risk:

   • Criticality: How critical is this component/material? Is it safety-related? Does it directly impact end-user safety?
   • Regulations: Are there specific regulations governing this product/material? (Almost always yes for anything sold commercially).
   • Consequences of Failure: What happens if this part fails? (Minor annoyance vs. catastrophic failure/fire/injury).
   • Supplier History: Have they provided reliable products before? Was testing ever mentioned or implied?

4. Explore Solutions (Based on Risk Assessment):

   • Option A: Demand Testing (Best for High Risk):

     • Make it Non-Negotiable: "Testing is a mandatory requirement for our continued business. Please provide a plan outlining how you will implement necessary testing for our products/materials."
     • Specify Requirements: Clearly state what tests are needed (e.g., material certs, safety certs like UL/CE, specific performance tests, batch testing protocols).
     • Set a Deadline: Give them a reasonable timeframe to implement this or find a certified lab.
     • Verify Implementation: Don't just take their word. Ask for proof: lab accreditations, test reports, audit access.

   • Option B: Third-Party Testing (Compromise for Medium Risk):

     • Offer to Pay/Share Cost: "We understand you may not have the capability. We are willing to fund or share the cost of third-party testing for our shipments. Please provide samples to [Specify Lab] for testing before shipment."
     • Pre-Shipment Inspection: Require them to send samples to your designated lab before shipping the full batch. Only pay for and accept the batch if tests pass.
     • Random Batch Testing: Test random batches yourself at an independent lab.

   • Option C: Self-Testing / Enhanced Incoming QC (For Lower Risk - Use with Extreme Caution):

     • Only if: The risk is very low (e.g., non-cosmetic, non-safety, non-regulated commodity), you have the in-house capability, and you accept the liability.
     • Action: Implement rigorous incoming inspection protocols you control. Document everything meticulously. This does NOT absolve the supplier of their responsibility. You are still taking on significant risk they should be managing.

   • Option D: Find a New Supplier (Often the Safest Choice):

     • Seriously Consider This: If they refuse testing, cannot implement it, or the risk is high, start looking for a new supplier immediately. The cost and risk of dealing with them far outweigh any potential short-term savings.
     • Supplier Qualification: When vetting new suppliers, make testing and quality control capabilities a non-negotiable requirement from the start.

5. Review Your Contract:

   • What are the quality clauses? Do they specify testing requirements?
   • What are the liability and indemnification clauses? Are they strong enough to cover damages caused by their lack of testing?
   • Consider adding specific clauses mandating testing and providing test reports/certificates of compliance (CoC).

6. Document Everything:

   • Keep records of all communications (emails, letters) where they state "we don't do testing."
   • Document your requests for clarification and their responses.
   • Save any test reports you receive (or lack thereof).
   • Document your risk assessment and the actions you take.

Key Questions to Ask Yourself:

• "Am I willing to risk my company's reputation, finances, and potentially people's safety based on a supplier who explicitly says they don't ensure quality through testing?" (The answer should almost always be NO).
• "What is the absolute worst-case scenario if this product/material fails due to a lack of testing?" (Be brutally honest).
• "Can I truly and reliably test this myself to the required standard?" (Be honest about your capabilities).

In Summary:

A supplier stating "We don't do testing" is essentially saying "We have no idea if our products are safe, compliant, or even meet basic specs." This is unacceptable for any serious business. Your primary responsibility is to your customers and your company's survival.

• High Risk/Critical Product: Demand testing or walk away. Do not compromise.
• Medium Risk: Push hard for third-party testing or rigorous pre-shipment inspection. Document everything.
• Low Risk (Use Extreme Caution): Only consider enhanced incoming QC if you absolutely must use them and accept the liability. Still, start looking for alternatives.

Protect yourself. Insist on proof. Testing isn't optional; it's fundamental to responsible business. Don't let a supplier's negligence become your crisis.