Research guide · Last reviewed 13 August 2026

Approved Supplier Management Guide

Approved does not mean suitable for every purchase forever. An approved supplier record should state the legal entity, categories, locations, risk tier, permitted scope, conditions, evidence validity and approving authority.

Define approval precisely

Tie approval to a legal entity and controlled category taxonomy. Record scope, sites, thresholds, geography, contract dependencies and any conditions. Prevent users from treating a related company or different service as automatically approved.

Use governed status transitions

Define prospect, onboarding, approved, conditional, suspended, rejected and inactive states, plus who may change them. Expired mandatory evidence, critical incidents and confirmed sanctions findings should trigger explicit workflows rather than silent status changes.

Monitor what can change

Schedule reviews by risk and trigger reassessment for ownership, bank, scope, access, location, incident, performance or regulatory changes. Notify accountable owners before evidence expires and prevent low-value reminders from overwhelming critical alerts.

Measure the list's usefulness

Track approved coverage by category, unused suppliers, concentration, conditional approvals, expired evidence, cycle time, exception age and purchases outside approved channels. Rationalise redundant records while preserving competition and resilience.

Related resources

Sources and research basis

  1. OECD Due Diligence Guidance
  2. NIST SP 800-161 Rev. 1
  3. ISO 31000 risk management

This guide distinguishes general control recommendations from legal requirements. It is general information, not legal advice; applicability varies by entity, sector, jurisdiction and contract.

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