Supplier qualification is the assessment of whether a prospective or existing supplier meets defined requirements for a particular scope. Criteria can include capability, capacity, quality, financial, legal, security, privacy, safety, sustainability, geographic, or operational evidence. Qualification should record who reviewed which evidence, the decision, conditions, expiration, and the categories or entities to which it applies.
In plain English
It checks whether a supplier is suitable for a defined business need.
Illustrative example
At Northstar Industrial Systems, an equipment supplier is qualified for one component family after technical, quality, capacity, and financial reviews, with a documented renewal date.
- Related terms
- Due diligence; Supplier onboarding; Supplier risk assessment; Preferred supplier
- Lifecycle stages
- Source; Approve; Govern
- Stakeholders
- Procurement; Operations; Quality; Finance; Supplier