Procurement - Onboarding a New Supplier

Gather legal trading name, registered address, VAT number, primary and billing contacts, payment terms, bank details, and certifications in writing before any order is placed.

Get lead time commitment, minimum order quantities, damage claim window (48-72 hours), returns policy, and any exclusivity restrictions confirmed in writing.

Place a small, low-risk order on standard stock lines before committing the supplier to a high-value or deadline-critical job. Tests acknowledgment, lead time, packaging, and invoicing.

Issue a full purchase order with product codes, agreed price, delivery date, payment terms, and job reference. Establishes the price baseline for three-way matching from the first transaction.

Count against the delivery note, check product condition, verify specifications. Log discrepancies immediately and notify the supplier in writing within the agreed claim window before approving the invoice.

After the first invoice is paid, review order acknowledgment speed, lead time accuracy, delivery completeness, and invoice accuracy. Record outcome and decide whether to advance to preferred supplier status.

Record the supplier with category, tier (primary or secondary), agreed pricing, lead time commitment, and review date. Set a 90-day performance check reminder.

A new supplier was placed on a high-value job without a qualification order, and the first delivery arrived short with no agreed claim process to fall back on.

The first purchase order was raised verbally and the supplier invoiced at a higher price than quoted, with no written PO to dispute it against.

After a spot purchase went well, the supplier was assumed to be reliable but never formally added to the preferred list, so the same qualification gap appeared six months later.