New Supplier Onboarding Checklist for Professional Services
A checklist for setting up and vetting new suppliers, ensuring they meet your quality, compliance, and commercial requirements before trading commences.
Designed to meet professional indemnity requirements, client confidentiality obligations, and industry body reporting standards.
Complete Checklist
- 1Verify the supplier's ABN and business registration detailsCritical
- 2Confirm the supplier holds the necessary licences for their industry
- 3Request and verify proof of insurance coverageCritical
- 4Negotiate and agree on pricing, payment terms, and service delivery conditionsCritical
- 5Execute a formal supply agreement or terms of trade
- 6Set up the supplier in the accounting and procurement systems
- 7Obtain banking details for payment and verify via a confirmation call
- 8Request service or service specifications and quality standards documentation
- 9Agree on ordering processes and minimum instruction quantities
- 10Confirm lead times and service delivery schedules
- 11Discuss returns, warranty, and dispute resolution procedures
- 12Identify the primary contacts for orders, accounts, and escalations
- 13Conduct a quality check on the first instruction or sample before committingCritical
- 14Add the supplier to the approved supplier register
- 15Schedule a three-month review to assess the new supplier relationship
Frequently Asked Questions
Should we always have a formal agreement with suppliers?
Yes, a written agreement protects both parties and reduces the risk of disputes. For ongoing supply relationships, a formal supply agreement is recommended. For one-off purchases, a purchase instruction with clear terms on the reverse is usually sufficient. Verbal agreements are difficult to enforce and often lead to misunderstandings about pricing, service delivery, and payment terms.
What due diligence should be conducted on new suppliers?
At minimum, verify their ABN, check their business registration, confirm insurance coverage, and request references from other clients. For critical suppliers, consider requesting financial statements, conducting a site visit, and checking for any relevant legal or regulatory issues. The level of due diligence should be proportionate to the value and risk of the supply relationship.
Why is it important to verify supplier banking details?
Payment redirection fraud is a common scam where criminals impersonate suppliers and request changes to banking details. Always verify banking details through an independent phone call to a known number, not the one provided in the email. Implement a two-person approval process for any changes to supplier payment details to reduce the risk of falling victim to fraud.
Need help implementing these checks into your daily operations?
Our team can build custom checklists integrated into your daily operations workflow.