The use of pre-qualification criteria or processes for appraising suppliers during the sourcing process

Evaluate the use and choice of pre-qualified suppliers, pre-qualification criteria or processes for supplier appraisal in the sourcing process taking into account stakeholder requirements

Sources of information about suppliers, such as:

• Financial reports
• Credit rating agencies
• Social media
• Supplier websites
• Other appropriate publications and sources

Research information about suppliers using appropriate sources of information to help select appropriate suppliers

The assessment of financial statements to evaluate the financial, commercial and technical capabilities of potential suppliers in the sourcing process

Evaluate the financial, commercial and technical capabilities of potential suppliers

The assessment of the need for suitably qualified and experienced personnel, and security or safety measures relevant to the procurement

Appraise suppliers' capabilities to provide suitably qualified and experienced personnel, and security or safety measures relevant to the procurement

The use of ratio analysis to evaluate potential suppliers

Analyse key financial ratios indicating profitability, liquidity, gearing and investment to evaluate the suitability of potential suppliers

The use of scoring methods in the supplier appraisal process

Evaluate potential suppliers’ pre-qualification or precontract assessments, using criteria scoring to make recommendations based on these assessments

The need for updating data on financial reports and credit ratings

Update data on financial standing and credit ratings during the whole life of contracts and take actions to mitigate financial risks