The Procurement Glossary » Supplier Onboarding
Supplier Onboarding
Suppliers & Vendors
Definition
The process of setting up a new supplier to trade — collecting details, verifying compliance and adding it to systems.
Explanation
Onboarding gathers legal, financial, tax and banking data, runs due-diligence checks, and creates the vendor master record. Efficient onboarding gets suppliers trading fast while ensuring only compliant, verified vendors enter the system.
Example
Onboarding the new supplier takes a day: it self-registers, uploads certificates, and is verified and activated.
Related terms
- Vendor Master Data — The authoritative record of each supplier's key details — legal name, addresses, tax IDs, bank and payment terms.
- Supplier Prequalification — The process of screening suppliers against minimum requirements before inviting them to bid, to ensure only capable, compliant suppliers compete.
- Due Diligence — The investigation of a supplier's legitimacy, capability, financial health and compliance before engaging it.
- Approved Supplier List (ASL) — A controlled list of suppliers that have been vetted and authorised to supply a business, often by category.
Related concepts
- Supplier Management — Onboarding, qualifying, evaluating and governing the suppliers a business relies on — turning a scattered vendor list into a managed supply base.
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Frequently Asked Questions
What is Supplier Onboarding?
The process of setting up a new supplier to trade — collecting details, verifying compliance and adding it to systems. Onboarding gathers legal, financial, tax and banking data, runs due-diligence checks, and creates the vendor master record. Efficient onboarding gets suppliers trading fast while ensuring only compliant, verified vendors enter the system.
Can you give an example of Supplier Onboarding?
Onboarding the new supplier takes a day: it self-registers, uploads certificates, and is verified and activated.
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