Approved Supplier List Template

by Rajeshwari Kumar


An Approved Supplier List Template provides a standardized format for documenting and managing the suppliers that an organization deems trustworthy and reliable. This blog post will delve into the importance of vendor management, maintaining an approved supplier list and providing a downloadable template that can be tailored to meet the specific needs of your organization. Whether you are a large corporation or a small business, having an organized and up-to-date list of approved suppliers is essential for mitigating risks and maintaining operational efficiency.

Approved supplier list

Understanding The Importance Of Having An Approved Supplier List Template

First and foremost, ASL helps companies maintain consistent quality control. By pre-approving suppliers, organizations can ensure that products and services received from these suppliers consistently meet their quality standards. This is crucial for industries where quality compliance is paramount, such as pharmaceuticals, aerospace, and food production. With ASL in place, companies can minimize the risk of receiving substandard products or services, thus avoiding costly quality issues or even product recalls.

Furthermore, having an ASL can lead to significant cost savings. By carefully vetting suppliers and negotiating favourable contracts with them, organizations can secure better pricing and payment terms. This reduces procurement costs and allows businesses to allocate resources more efficiently. Additionally, maintaining a limited number of approved suppliers can simplify the purchasing process, leading to economies of scale. Consolidating the supplier base can result in bulk purchasing discounts and lower administrative costs associated with managing multiple suppliers.

How To Create Your Approved Supplier List Template?

Here are the key steps to develop your own ASL template:

1. Identify your suppliers: Research and identify potential suppliers. This can be done through various means, such as online searches, industry directories, trade shows, and referrals from colleagues or industry associations.

2. Supplier ID: This is a unique code or abbreviation that represents your company. It helps differentiate your supplier IDs from those of other organizations. Creating a supplier ID for an approved supplier list involves establishing a unique identifier that distinguishes each approved supplier in your database or records.

3. Notes: The "Notes" column may be used for recording things like open Corrective Actions or other issues affecting their Approved Supplier standing.

4. Identify Evaluation Methods: Determine the evaluation methods that will be used to assess suppliers against the defined criteria. This could involve reviewing supplier certifications, conducting on-site audits, engaging in customer feedback analysis, or using third-party evaluation services. Utilizing multiple evaluation methods ensures a comprehensive assessment.

5. Set Approval Process: Establish a clear process for approving suppliers to be included in the ASL. This may involve creating an evaluation committee responsible for reviewing supplier evaluations and granting approval. Defining the number of committee members, their roles, and decision-making criteria helps maintain objectivity and consistency.

6. Develop Evaluation Forms: Design evaluation forms that capture the necessary information for assessing suppliers against the defined criteria. These forms should be comprehensive yet easy to understand and complete. Include sections covering supplier details, evaluation criteria, and scoring mechanisms.

7. Implement Supplier Evaluation: Start evaluating potential suppliers based on the defined criteria and using the evaluation forms. Ensure that evaluators are well-trained and follow consistent evaluation methodologies. Maintaining detailed records of evaluations provides transparency and supports future decision-making.

8. Review and Approve Suppliers: Once evaluations are complete, assemble the evaluation committee to review the results and make decisions regarding supplier approval. Consensus-based decision-making or predetermined scoring thresholds can be employed to ensure fair and consistent evaluations. Approved suppliers should then be added to the ASL.

9. Periodic Review and Re-evaluation: Regularly review and reassess suppliers in the ASL to ensure they continue to meet the required standards. Set specific intervals for reviewing supplier performance and re-evaluating their compliance with evaluation criteria. This enables proactive risk management and helps maintain a high-quality supplier base.

10. Customize Your ASL Template: Based on your organization's specific requirements, customize your ASL template to include the evaluation criteria, forms, and approval process discussed above. Ensure the template is user-friendly and accessible to relevant stakeholders involved in the supplier management process.

11. Integrate IT Tools: Leverage IT solutions to simplify the supplier evaluation and management process. Integrated IT tools, such as supplier relationship management software or IT governance systems, can automate various steps, provide data analysis capabilities, and ensure real-time access to supplier information.

12. Communicate and Train: Effectively communicate the ASL template and its implementation to all relevant internal stakeholders, such as procurement, quality assurance, and operations teams. Provide training on how to use the ASL template, complete evaluation forms, and interpret supplier qualifications. This facilitates consistent and efficient utilization of the ASL template across the organization.

Maintaining And Updating An Approved Supplier List Template

Here are steps you can take to maintain and update the list:

  • Establish Clear Criteria and Standards: Define specific criteria and standards that suppliers must meet to be included on the approved list. This could include factors like quality, compliance, delivery times, pricing, and reliability.
  • Regular Performance Monitoring: Monitor the performance of approved suppliers against established criteria. Keep records of metrics like on-time delivery, product quality, customer service responsiveness, etc.
  • Feedback and Communication: Maintain open lines of communication with suppliers. Provide constructive feedback on their performance and address any concerns promptly.
  • Supplier Audits and Visits: Conduct periodic on-site visits or audits to verify the supplier's capabilities, quality control processes, and adherence to regulations.
  • Periodic Reviews: Set up a schedule for reviewing the approved supplier list. This could be done quarterly, semi-annually, or annually, depending on the criticality of the supplies.
  • Consider Supplier Feedback: Solicit feedback from suppliers about your organization's processes and interactions. This can provide insights into areas where improvements can be made.
  • Update Documentation and Records: Ensure that all records, including supplier evaluations, audits, and performance metrics, are kept up to date.


An effectively managed approved supplier list not only safeguards the integrity of a company's operations but also lays the foundation for sustained growth, competitiveness, and customer satisfaction. It is an indispensable tool in optimizing the procurement process and fortifying the overall resilience of the organization. Establishing an approved supplier list is a critical process for any organization seeking to streamline procurement, enhance operational efficiency, and ensure product or service quality.