Supplier registration: laying a solid foundation for successful partnerships

The commitment to fundamental values may seem self-evident, but it is efficient to incorporate these into the supplier registration process, particularly in connection with the CSDDD's duty of care. We are essentially talking about the Code of Conduct here. In addition, however, areas can also be queried that are subsequently significant for a possible development of the supplier. Here are a few examples:

- Compliance with laws and ethical values

- Recognition of the corporate philosophy

- Signing of the quality assurance agreement

- Commitment to sustainability

- Principles of communication

- Interest in long-term cooperation

- Markets/sectors supplied

- Service level

- Know-how/innovative strength

Different queries can be created depending on the product group for which the supplier is applying. For example, the EU requirements (e.g. the CSDDD or the EUDR deforestation regulation) influence the respective risk profile: if products covered by the EUDR are involved (wood, products made from cattle, etc.), it should already be clarified in the supplier registration that the supply-related due diligence statements (DDS) required by the regulation are among the main obligations of any contract. The question of the origin of the raw materials also helps when creating the respective risk profile, as the EUDR differentiates between the individual risks of the countries of origin and therefore different due diligence measures are required.

All of this shows how essential a forward-looking supplier inquiry concept is for the further management process!

The information and documents recorded in the application workflow are saved in the system and can subsequently trigger further automatic workflows: For example, the updating of master data, the renewal of documents or the performance of audits.

However, product-related confidentiality clauses can also be defined as a necessary part of the contract or agreements on quality assurance with product specifications, implementation regulations, certificates to be provided, test certificates, etc. can be defined as a prerequisite for a specific order. Corresponding underlying processes ensure compliance with these requirements.

The strategic buyer often takes on the role of supplier management, meaning that they will also be in charge of designing the application forms. However, the quality department or in-house supplier developers can also provide valuable input. The interfaces between production and operational purchasing should also be considered. However, the IT manager may also come into question if they are responsible for operational tasks such as data maintenance or keeping track of certificates. Product development also offers valuable insights that should be taken into account.

As a result, the different perspectives of the individual departments create a valuable overall view of the ideal supplier profile. At the same time, a balance should always be struck between a high level of detail and the hurdle of required information for the supplier application. In order to avoid excessive effort, only the existence of certificates can be requested during the application process and their provision can be shifted to subsequent processes (e.g. specific inquiries).