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    Supplier Onboarding Process

    The supplier onboarding process occurs when a business integrates a supplier into their supply chain, which includes collecting their information and establishing expectations for the working relationship.

    What Is a Supplier Onboarding Process?

    The supplier onboarding process is a critical practice for establishing a working relationship with a new supplier or vendor. It involves gathering and evaluating all of the relevant information about the supplier; inputting that information into a supplier data management system; ensuring the supplier completes all necessary compliance-related tasks; and establishing expectations and communication lines for the ongoing working relationship.

    As part of the evaluation phase, businesses assess a supplier’s financial and working history and regulatory history. Then, the business outlines the expectations of the relationship, including timelines, supply chain workflows, pricing, payment terms, and more.

    Finally, they fully integrate the supplier into their supply chain ecosystem by setting them up in their data management system and completing any necessary training. A smooth supplier onboarding process can help a business and its vendors stay organized and set clear guidelines for working together.

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