This policy procedure sets out how key suppliers are appraised, approved, reviewed and removed, and points to the register and appraisal forms that hold the detail.

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This policy template is supplied in fully editable MS Word format and can be easily customised and edited. The document uses pre-defined style formatting throughout, with all text in Calibri font for improved readability.
The following document labelling is included in the footer:

• Policy number and title
• Information-classification
• Version
• Page number / total pages

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Further Reading

Further guidance on purchasing and supplier management:

• Purchasing and Supplier Management
• ISO 9001 Clause 8.4 - External Providers
• Supplier and Third-Party Information Security
• Management Systems knowledge base

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Supplier Appraisal Policy Procedure Template

The Supplier Appraisal Policy Procedure is a Word template that sets out how a business vets, approves and monitors its key suppliers, sub-contractors and service providers. It covers the appraisal procedure and requirements of approved suppliers, approval decisions, the security, retention and disposal of supplier records, ongoing and annual supplier review, and suspension from the approved suppliers list.

It applies to key suppliers, defined as any supplier or outsourced service that can affect the quality of service provision. Title, File Location, Issue No, Issue Date, Controlled By and Approved By fields, an Amendment Record and a Business Use classification in the footer support document control.

What the Policy Covers

• Amendment record, summary, scope and applicability - the purpose of supplier appraisal, the definition of a key supplier and who the policy applies to
• Statement of intent and appraisal procedure - appraising new suppliers before they join the approved suppliers list, the appraisal forms, and checking certifications, memberships, licences and insurance
• Requirements of approved suppliers - the service levels suppliers must meet, environmental, health and safety and information security considerations, and suppliers that need no full appraisal
• Approving the supplier - evaluating each supplier by how critical it is, questionnaire answers on convictions and prohibition notices, and recording what each supplier is approved to supply
• Supplier records - secure storage and access, minimum retention periods for supplier and financial records, and secure deletion or destruction at the end
• Supplier review and removal - ongoing performance monitoring, formal review at least annually, management review, and suspending suppliers who fall below standard

Built for Approved Supplier Control

• New suppliers appraised before they join the approved suppliers list, with certificate and insurance renewal dates logged
• Questionnaire answers on convictions and prohibition notices that must be negative, with any positive answer passed to a senior manager
• A record of what each supplier is approved to supply, so new products or services prompt a further appraisal
• A formal review of every approved supplier at least annually, with the review date logged
• Suspended suppliers removed from the approved list and relevant staff told they are no longer approved

Who Needs a Supplier Appraisal Policy Procedure?

Businesses that rely on suppliers, sub-contractors or outsourced services that affect the quality of what they deliver. It is used by the staff and managers who approve suppliers and keep the approved suppliers list.

How the Policy Fits Together

Approved suppliers and their renewal dates are held on the ER3 Key Supplier Contractor Register, which serves as the approved suppliers list. New suppliers complete the F-Q9 Supplier Appraisal Form or, for contractors, the F-HS16 Contractor Health and Safety Appraisal Form before approval.

Using the Policy

Edit the arrangements to match your own, such as what makes a supplier key, the service levels you expect, your retention periods and who reviews positive questionnaire answers. Name the person responsible in the Controlled By field, give it top level approval and brief the staff who buy goods and services.

Related Documents

The PP-1-18 Purchasing Outsourced Services Policy Procedure covers purchasing and outsourced services alongside this appraisal process.