Supplier selection and approval process: step by step

Why a defined process

Most chronic supplier problems are decided at sourcing. A supplier chosen only on price, without a capability check, often costs more in sorting, complaints and escalation than the saving. A short, defined process involving purchasing, quality and engineering prevents this.

The steps

• 1. Requirements: technology, volumes, special characteristics, certification required, customer-directed sources.
• 2. Long list: existing suppliers first, then new candidates from market research.
• 3. Pre-qualification: certificate, financial stability, capacity, location, a short self-assessment.
• 4. Capability assessment: questionnaire scored by quality, on-site audit for high-risk parts.
• 5. Quotation and feasibility review: price together with the supplier’s feasibility commitment and open technical points.
• 6. Sourcing decision: cross-functional, documented, with the risk class and any conditions.
• 7. Contract: supplier quality agreement, logistics agreement, customer-specific requirements passed down.
• 8. Approved supplier list: entry with scope (part families, processes) and status.
• 9. Part approval: APQP and PPAP or PPF before series delivery.

Risk-based depth

Conditional approval

If a supplier is needed but has gaps, approve it with conditions: an action plan with dates, a follow-up audit and increased incoming inspection until the actions are closed. Record the conditions; otherwise they are forgotten after the first deliveries.