Supplier approval

What is meant by Supplier approval?

The term "supplier approval" refers to the process of evaluating, selecting, and approving suppliers who meet specific criteria and standards to serve as authorized business partners for a company. This process ensures that suppliers meet the necessary quality, performance, and compliance requirements.

Typical software functions in the area of "supplier approval":

1. Supplier evaluation: Recording and analyzing supplier performance based on defined criteria.
2. Document management: Administration of certificates, audit results, and other relevant documents.
3. Risk assessment: Identification and evaluation of potential risks associated with suppliers.
4. Workflow management: Automation of the approval process with defined approval steps.
5. Supplier database: Central storage and management of supplier information.
6. Compliance check: Verification of compliance with legal and company-specific requirements.

Examples of "supplier approval":

1. Fully approved: The supplier meets all requirements and is cleared for business relationships.
2. Conditionally approved: The supplier is approved under certain conditions or for a probationary period.
3. Not approved: The supplier does not meet the minimum requirements and is rejected.
4. Under review: The approval process for the supplier is still ongoing.
5. Approval suspended: A supplier's approval is temporarily suspended until certain issues are resolved.
6. Approval revoked: A supplier's approval is withdrawn due to serious violations or quality deficiencies.