Vendor onboarding process template

The five stages

Request, where somebody in the firm says they need this vendor and why. Approve, where whoever holds the budget agrees. Collect, where the vendor's own details and evidence arrive. Set up, where they exist in your payment and access systems. Active, where the first purchase order or invoice can be raised. Each stage has one owner, and the process is finished when the vendor is genuinely payable rather than when the paperwork is filed.

Where approval belongs

Before collect, not after. Firms that collect a vendor's details and then discover the spend was not approved have wasted the vendor's time and their own goodwill. A one-line approval that names the budget holder and the expected annual spend is enough for most firms and takes a day out of the process by preventing rework.

What to leave out without a procurement function

Scorecards, competitive tendering thresholds, multi-stage sign-off matrices and quarterly supplier reviews. These exist to manage hundreds of suppliers with dedicated staff. A firm with thirty vendors and no procurement team will not complete them, and a process with steps nobody completes stops being a process.

Recording what expires

Insurance certificates, licences and certifications have dates, and the moment to capture them is at collect, when the document is in front of you. That converts a future discovery into a diary entry, which is the whole argument for keeping the vendor record beside the dates rather than in a folder.