The FOAK Supply Chain Framework

It’s hard to get suppliers to work with your startup.

FOAK projects are usually the worst type of customer for suppliers:

• No track record → you have to build trust from scratch.

• No certainty → you can’t really guarantee your product will work or that your customer will pay you.

• No stability → your bill of materials will change as you tweak your design and process.

From a supplier’s perspective, why bother talking to you at all?

And yet, many do.

Smaller suppliers may struggle to win large, predictable contracts and are willing to take a bet on you.

Big suppliers might see your FOAK as a showcase for entering a new market.

All of them need to hit sales targets—sometimes risk is part of the job.

The real questions are: how do you approach them? What should you have ready? What risks should you watch out for? And how do you get the best terms?

That’s where my seven-step FOAK supply chain setup framework comes in:

1. Start mapping suppliers before your pilot.

2. Secure investment commitments.

3. Secure customer commitments (off-takes are gold).

4. Have a clear FOAK execution plan.

5. Reach out—start with small/medium suppliers, don’t overlook used equipment suppliers.

6. Explore if suppliers can also be investors.

7. Evaluate risks—competition, merchant, logistics, political.

FOAK supply chains are messy, but they can be built systematically. And if you do it right, suppliers can become your biggest allies.