Establishing Comprehensive Supplier Qualification Processes

PROCUREMENT STRATEGY COUNCIL TM JULY 2006 

www.psc.executiveboard.com 

KEY FINDINGS 

Establishing Comprehensive Supplier Qualification Processes 

Related Council 

Research: 

BUILDING AGILE SUPPLIER 

QUALIFICATION PROCESSES 

(DECEMBER 2005) 

ENSURING SUPPLIER 

PRODUCTION QUALITY: KEY 

FINDINGS 

(JULY 2004) 

OPTIMIZING POLICIES AND 

PROCEDURES FOR ONSITE 

SUPPLIER AUDITS: INITIATIVE 

SNAPSHOT 

(FEBRUARY 2006) 

ISSUE OVERVIEW 

As organizations increasingly collaborate with fewer strategic suppliers, procurement 

organizations face the challenge of driving supplier improvement through 

quantifiable and clearly defined evaluation criteria. The supplier qualification 

process helps identify candidates for strategic relationships, facilitates 

communication with potential suppliers, and ensures new suppliers meet firm-wide 

quality, management, and safety standards. 

Leading companies recognize the importance of comprehensive supplier 

qualification processes but struggle to communicate qualification requirements to 

potential suppliers, create baselines for evaluating supplier risk levels, and ensure 

material conformance to specific requirements. Some procurement functions adopt 

recognized qualification standards to evaluate product quality during supplier 

qualification. International standards, such as ISO 9000 or TS-16949, promote broad 

participation and qualification of suppliers and create selection criteria for several 

processes including design control, inspections, equipment testing, handling, storing, 

packaging, and delivery. 

Recognized qualification standards such as ISO 9000 outline management processes 

and enable high-quality production, but may prove too general for industry 

specifications. As a result, companies often create supplementary criteria to ensure 

comprehensive supplier evaluations and applicability to specific industry needs. The 

table below outlines benefits and challenges procurement executives must consider 

prior to adopting standard or custom qualification criteria. 1 

CUSTOM VERSUS RECOGNIZED QUALIFICATION STANDARDS 

Aligning the qualification process with company needs 

BENEFITS 

CHALLENGES 

Based on specificity of 

the organization’s 

needs and available 

resources, companies 

can either adopt or 

develop qualification 

standards. 

S 

o 

u 

r 

c 

e 

: 

P 

r 

o 

I 

CUSTOMIZED 

CRITERIA 

STANDARD 

CRITERIA 

• Customizes supplier evaluations to 

meet organization’s needs 

• Focuses on industry-specific 

standards 

• Addresses each supplier’s 

respective development areas 

• Reduces need for preliminary 

qualifications and site visits 

• Provides an internationally 

recognized foundation for quality 

measurement 

• Requires extensive development 

time and capital commitment 

• Creates lack of uniformity across 

business units and results in 

supplier miscommunications 

• Costly process for suppliers 

• Does not guarantee continuous 

quality improvement 

• Quality standard too general for 

specific materials 

Source: Procurement Strategy Council Research (2003) 

© 2006 CORPORATE EXECUTIVE BOARD. ALL RIGHTS RESERVED.

PROCUREMENT STRATEGY COUNCIL PAGE 2 

ESTABLISHING COMPREHENSIVE SUPPLIER QUALIFICATION PROCESSES 

In addition to establishing appropriate selection criteria, procurement functions also 

need to maintain clear communication channels with potential suppliers at each stage 

of the qualification process. The function can choose from a variety of online tools, 

handbooks, or databases to establish expectations and requirements. 

Comprehensive supplier qualification processes and tools enable organizations to 

monitor supplier performance history and direct management attention to suppliers 

unable to meet qualification criteria. By establishing and measuring performance 

baselines, Procurement can save time and resources by disqualifying suppliers that 

do not meet required company standards. 

To assist members with challenges in implementing effective supplier qualification 

procedures, the Procurement Strategy Council presents the following findings. 

KEY FINDINGS 

Council research identified several strategies procurement organizations implement 

to ensure optimal and consistent supplier qualification standards, including the 

following: 

• Deploy electronic tools to manage qualification data: As companies 

increasingly shift sourcing strategies to encompass multiple markets, 

procurement functions should maintain supplier portals or automated data 

management systems to track qualification information for global suppliers. 

Global electronic databases increase transparency across procurement staff and 

business units. This visibility increases access to qualification requirements and 

audit results and encourages communication with suppliers to quickly resolve 

identified issues. 

Procurement at Cadbury Schweppes (profiled on pages 4-5) manages the 

qualification process for over 3,000 global suppliers through a supplier 

information database called FLAIR. The database automatically asks suppliers 

to provide additional or updated qualification information, including suppliers’ 

commercial status, ethical sourcing standards, innovation strategies, and 

business models. A color coded “stoplight” system within FLAIR records audit 

results and enables the procurement function to determine need for additional 

onsite audits of supplier facilities. 

• Establish and measure supplier safety risk levels: To ensure potential 

suppliers meet firm-wide health and safety standards, procurement functions 

should require suppliers to supplement general qualification requirements with 

safety and insurance information. Some companies evaluate supplier risk based 

on Occupational Health & Safety Administration (OSHA) reportable accidents, 

while others require suppliers to complete detailed ethical assessments on 

policies and management practices. 

At Salt River Project (SRP) (profiled on pages 6-8), Procurement Services 

collaborates with Risk Management during the supplier qualification process to 

track supplier safety information, compile supplier risk profiles, and verify 

insurance coverage. Risk Management develops and maintains a set of safety 

criteria measured through a Contractor Safety Management Program (CSMP) 

questionnaire. Contractors and service providers must meet or exceed a 

minimum risk score recommended by Risk Management to conduct business 

with SRP. 




• Verify product quality levels: In addition to general qualification criteria, 

procurement functions must ensure that direct material suppliers’ products 

conform to the firm’s quality standards and specification requirements. The 

function should review supplier sample materials and manufacturing capabilities 

through on-site assessments and product reliability tests. Procurement should 

use these assessments to inform supplier selection and as a benchmark for postcontract 

performance evaluations. 

Strategic Sourcing at ON Semiconductor (profiled on pages 9-11) mandates 

direct material suppliers to complete a quality system self-assessment, submit 

quality certificates, and provide product samples for reliability testing prior to 

final approval. By incorporating additional material verification steps during the 

supplier qualification process, the function ensures suppliers’ products meet 

quality and durability standards, as well as conform to required specifications. 

Additionally, Strategic Sourcing utilizes a Specification Automated Mailing 

System (SAMS) to update suppliers with applicable material specification 

revisions. 




INITIATIVE PROFILE: CADBURY SCHWEPPES UTILIZES A GLOBAL ELECTRONIC DATABASE 

TO MANAGE QUALIFICATION REQUIREMENTS 

Company Capsule 

Industry: Food Manufacturing 

2005 Sales: Over $5 Billion 

2005 Employees: Over 50,000 

Cadbury Schweppes is a leading global confectioner and soft drink producer. Since 

the company increasingly sources from global suppliers, the procurement function 

must ensure new global suppliers’ compliance with the firm’s quality and ethical 

sourcing standards. To improve management of global supplier qualification 

information, the company created a supplier information database called FLAIR. The 

database tracks supplier qualification requirements and directs management attention 

to areas of concern. 

The graphic below outlines Cadbury Schweppes’ standard supplier selection process. 

CADBURY SCHWEPPES’ STANDARD SUPPLIER QUALIFICATION PROCESS 

Cadbury Schweppes leverages technology to manage new supplier qualification 

information 

The FLAIR database enables 

procurement to track supplier 

qualification information, 

record audit results, and 

monitor document expiration 

dates. 

Potential suppliers 

submit RFI and 

prequalification 

questionnaire 

Procurement inputs 

supplier 

qualification 

information and 

performance history 

into FLAIR 

FLAIR’s colorcoded 

“stoplights” 

record audit 

results 

! 

FLAIR 

automatically 

notifies category 

managers when 

supplier 

documentation 

nears expiration 

Procurement asks 

suppliers to 

provide updated 

qualification 

information 

Source: Cadbury Schweppes; Procurement Strategy Council Research (2006) 

FLAIR assists Procurement to manage qualification requirements during the full 

supplier qualification process, as outlined below: 

• Register new suppliers: During initial registration, Procurement enters 

suppliers’ background information into the FLAIR database. 

• Evaluate suppliers in a competitive market environment: Procurement 

requires potential suppliers to complete a Request for Information (RFI) and a 

supplier prequalification form (see Appendix A, page 12). The prequalification 

form includes detailed questions on the following four key selection criteria: 

The supplier prequalification 

form includes questions on 

financial information, ethical 

sourcing standards, research 

capability, and expected future 

growth. 

1. Financial qualification: Dunn & Bradstreet financial reports and insurance 

information. 

2. Ethical sourcing standards: Policies and performance related to 

environment, health, and safety standards. 

3. Research and development: Innovation capabilities, level of research 

commitment, and alignment on common future development goals. 

4. Business model: Expected growth in specific geographic areas. 

Suppliers must meet all prequalification requirements to conduct business with 

Cadbury Schweppes. By tracking qualification information within FLAIR, 

Procurement identifies missing information and encourages potential suppliers 

to conform to company standards. 

• Audit new suppliers: At Cadbury-Schweppes, the procurement function audits 

new suppliers across all spend categories during the supplier qualification 

process. The FLAIR database tracks audit results through a color-coded 




Stoplights within FLAIR direct 

management attention to 

potential suppliers unable to 

meet qualification criteria. 

“stoplight” system. Red scores indicate suppliers do not meet qualification 

standards, yellow scores highlight key issues requiring resolution, and green 

scores identify suppliers audited and approved for work with the company. 

Additionally, the system enables procurement to effectively measure number of 

suppliers audited and approved for work in the previous six months. 

• Monitor supplier certifications: During the supplier qualification process, 

category managers maintain responsibility for communication with potential 

suppliers. To ensure compliance with enterprise-wide policies and procedures, 

these individuals meet with suppliers on a quarterly basis to assess selected key 

performance indicators (KPIs) on service quality and delivery. The FLAIR 

database automatically notifies category managers when supplier documentation 

nears expiration and requires renewal. 

The procurement function currently qualifies and manages over 3,000 global 

suppliers through the database. 

Procurement manages the 

qualification process for over 

3,000 global suppliers through 

the FLAIR database. 

By incorporating a supplier information database into the qualification process, 

Cadbury Schweppes’ procurement function monitors qualification requirements, 

increases transparency across the department on supplier performance history, and 

encourages communication with suppliers to quickly resolve identified issues. 

Additionally, procurement staff can create a single globally accessible entry within 

FLAIR to track qualification information and audit results for new suppliers 

providing goods or services in more than one region. 

Currently Procurement manually transfers supplier information from the FLAIR 

database into the company’s larger supplier management software enabled by 

Procuri. The software enables procurement staff to track previous communication 

with suppliers and utilize standard templates during the sourcing process. Cadbury 

Schweppes is developing an automated system to integrate supplier information from 

the FLAIR database to Procuri and plans to implement the new system by the end of 

2006. 




INITIATIVE PROFILE: SRP’S PROCUREMENT FUNCTION COLLABORATES WITH RISK 

MANAGEMENT TO EVALUATE SUPPLIER RISK DURING QUALIFICATION 


Industry: Electric Utilities 

• 2005 Sales: Between $1-5 billion 

• 2005 Employees: Under 10,000 

Salt River Project (SRP) is one of the largest US government-owned utilities. The 

procurement function emphasizes supplier compliance with firm-wide health and 

safety standards since suppliers conduct a significant proportion of services on SRP 

property. Procurement Services maintains responsibility for evaluating and 

approving new suppliers and collaborates with Risk Management to establish and 

measure supplier risk levels. 

SRP enters all potential suppliers into an ERP system. Once suppliers demonstrate 

compliance to required health and safety standards, SRP integrates approved supplier 

information into a central repository called the Supplier Information Database 

(SIDS). Procurement Services and Risk Management employ the following steps to 

evaluate supplier risk during qualification: 

• Initial registration: As a first step in evaluating supplier risk, Procurement 

Services requires suppliers to submit a pre-qualification safety questionnaire in 

addition to general contact information, W-9 forms, and references. Once 

suppliers provide all registration information, Procurement Services enters the 

data into an ERP system. The checklist below outlines qualification information 

suppliers must submit during initial registration. 

SALT RIVER PROJECT’S INITIAL REGISTRATION REQUIREMENTS 

Procurement Services requires the following qualification information during initial 

registration 

Supplier Information Database (SIDS) questionnaire 

A brief questionnaire containing questions on general 

contact information, state licenses, financial information, 

and references. 

During initial registration, 

suppliers must submit prequalification 

questionnaires, 

copies of safety and insurance 

certificates, and financial 

information. 

Contractor Safety Management Program (CSMP) 

pre-qualification questionnaire 

SRP requires suppliers to complete a pre-qualification 

safety questionnaire for on-site work at SRP facilities, 

work locations, or other properties. 

OSHA 200 / 300 Log 

Suppliers must submit copies of current year 

Occupational Safety & Health Administration (OSHA) 

300 log sheets and OSHA 200/300 log sheets for 

previous three years 

Experience Modification Rating (EMR) 

Suppliers must submit copies of Experience 

Modification Ratings (EMRs) for current year and 

previous three years. EMRs must be certified by 

suppliers’ insurance carriers. 

W-9 form 

Request for taxpayer identification number and 

certificates. 

Source: Salt River Project; Procurement Strategy Council Research (2006) 




• Safety and risk assessment: Risk Management supports Procurement Services 

to establish standard controls and evaluate supplier risk through the following 

procedures: 

Risk Management establishes 

safety standards, monitors 

supplier risk, and verifies 

vendor insurance information. 

1. Establish consistent safety standards: Risk Management develops and 

maintains a set of criteria to measure supplier risk through a Contractor 

Safety Management Program (CSMP) questionnaire (see Appendix B, page 

17). The questionnaire covers topics including historical safety incidents, 

Occupational Safety & Health Administration (OSHA) recordable 

incidents, and internal safety and health training programs. Potential 

suppliers must meet or exceed a minimum standard recommended by Risk 

Management. The minimum standard is based on supplier size and level of 

risk relevant to services rendered. Senior management may override the 

qualification criteria for unique situations. 

2. Monitor supplier risk: Risk Management enters supplier responses to the 

CSMP questionnaire into a central database called the Risk Management 

Information System (RMIS). Based on performance on the CSMP scale, 

Risk Management compiles a risk profile for potential suppliers. Safety 

scores are valid for a period of three years. The database enables effective 

tracking of risk scores to ensure suppliers update safety information prior to 

expiration. 

Procurement Services 

disqualifies suppliers that do 

not meet required insurance 

coverage. 

3. Verify insurance coverage: SRP requires the following insurance coverage 

for any supplier or contractor performing services on SRP facilities, 

properties, or job sites: 

• Worker’s Compensation: Statutory 

• Commercial General Liability: $2 million 

• Commercial Auto Liability: $2 million 

• Architect and Engineering Liability: $1 million 

Risk Management gathers supplier insurance certification and stores 

information in the RMIS database for future reference. The department 

monitors expiration dates and sends letters to suppliers when certificates 

near expiration. After two failed attempts, Risk Management notifies 

Procurement Services to obtain certification directly from suppliers. 

• Registration verification: Once Risk Management completes supplier risk 

assessments, Procurement Services performs the following additional 

qualification checks on new suppliers: 

Procurement Services reviews 

supplier registration 

information, checks 

government watch-lists, and 

verifies state certificates. 

1. Verify supplier stability: Procurement Services reviews Dunn & Bradstreet 

reports, calls references, and analyzes suppliers’ risk profiles compiled by 

Risk Management. In some cases, Procurement Services contacts references 

for further verification. 

2. Review government watchlists: Procurement Services checks suppliers 

against the Office of Foreign Assets Control’s list of Specially Designated 

Nationals and Blocked Persons and the Department of State’s Foreign 

Terrorist Organizations. 

3. Validate state certification: Procurement Services verifies state certification 

for all contractors before final approval. 




Procurement Services 

maintains a Supplier 

Information Database to track 

supplier qualification 

information and past 

performance. 

• Data integration: Procurement Services next integrates vendor data from the 

ERP and RMIS systems into a single application called the Supplier Information 

Database (SIDS). The SIDS system tracks product and service information, 

work history, and safety records for all approved suppliers. To remain in the 

database, suppliers must resubmit registration information every two years. 

Additionally, the system enables internal business units to identify suppliers 

based on internal commodity codes, enter comments, and track supplier 

performance and historical issues. 

The following graphic outlines ownership over different activities during SRP’s 

extensive supplier qualification process. 

SALT RIVER PROJECT’S SUPPLIER QUALIFICATION PROCESS 

Procurement Services and Risk Management functions at SRP collaborate to evaluate 

supplier risk 

Procurement Services and Risk 

Managements collaborate to 

track supplier safety 

information, compile supplier 

risk profiles, and verify 

insurance coverage during the 

second qualification stage. 

Initial 

Registration 

Safety and Risk 

Assessment 

Registration 

Verification 

Procurement Services: 

• Send qualification requirements to potential suppliers 

• Enter potential supplier information into ERP system 

Supplier: 

• Submit pre-qualification questionnaires, safety certifications, financial 

information, and references 

• Complete Contractor Safety Management Program (CSMP) questionnaire 

Risk Management: 

• Enter supplier responses to CSMP questionnaire into Risk Management 

Information System (RMIS) 

• Verify and track supplier insurance coverage through RMIS 

• Compile supplier risk profiles 


• Review Dunn & Bradstreet reports, call references, and analyze supplier 

risk profiles 

• Check suppliers against government watch-lists 

• Verify state license information 

Data 

Integration 


• Integrate approved supplier information from ERP and RMIS systems 

into Supplier Information Database (SIDS) 

Source: Salt River Project; Procurement Strategy Council Research (2006) 

The CSMP questionnaire provides Procurement Services with a consistent set of 

criteria to evaluate suppliers’ safety policies and programs. By collaborating with 

Risk Management early in the process to establish and measure supplier risk levels, 

Procurement Services continues to save time and resources by disqualifying 

suppliers that do not meet firm-wide health and safety standards. Additionally, the 

SIDS database enables Procurement Services staff to track number of suppliers 

approved during qualification in a given time period. 




INITIATIVE PROFILE: ON SEMICONDUCTOR ASSESSES QUALITY SYSTEMS TO QUALIFY ALL 

DIRECT MATERIAL SUPPLIERS 


Industry: Electronics 

2005 Sales: $1-5 Billion 

2005 Employees: 10,000-50,000 

ON Semiconductor is a leading manufacturer of power components and electrical 

appliances. Given the critical role direct goods play in production and operations, 

Strategic Sourcing incorporates additional quality verification steps during the 

supplier qualification process to ensure conformance to material specifications. 

Strategic Sourcing teams and supplier quality engineers collaborate to establish, 

communicate, and verify product quality requirements to potential suppliers. 

When the current supply base cannot meet direct material demands, a Strategic 

Sourcing manager evaluates new suppliers based on several qualification criteria, 

including financial stability, physical and technical capability, cost-competitiveness, 

and timeliness of delivery. 

The following flowchart outlines the process for qualifying and selecting direct 

suppliers at ON Semiconductor. 

ON SEMICONDUCTOR’S SUPPLIER QUALIFICATION PROCESS 

Strategic Sourcing inspects quality of suppliers’ product samples during the qualification 

process 

Requirement for direct 

material identified 

(Strategic Sourcing Team) 

Review current supply base 


Select potential suppliers 

using qualification criteria 


No 

Any acceptable 

from existing 

supply base 

Yes 

RFQ potential suppliers 

(Sourcing Manager) 

RFQ top suppliers 


New Quote 

Other Supplier 

During qualification, strategic 

sourcing mandates suppliers 

to complete a quality system 

self assessment, submit quality 

certificates, and provide 

product samples for 

evaluation. 

Request Quality System self 

assessment & copy of 

certificate 

(Supplier/Quality Engineers) 

Select best candidate(s) 

based on: RFQ, SA, and 

criteria 


Pricing 

acceptable 

Yes 

Ask supplier to submit 

material samples 


No 

Request new 

quote(s) or 

consider other 

suppliers 

Perform on site quality 

assessment 

(Supplier/Quality Engineers) 

Inspect supplier products and process 

capabilities 

(Quality Engineers) 

No 

Recommend 

to 

proceed 

Yes 

No 

Parts pass 

qualification 

Yes 

Proceed with production 

order 


Source: ON Semiconductor; Procurement Strategy Council Research (2006) 




The table below summarizes general qualification criteria Strategic Sourcing uses to 

evaluate potential suppliers during the supplier qualification process outlined on the 

previous page. 

ON SEMICONDUCTOR’S SUPPLIER QUALIFICATION CRITERIA 

Strategic Sourcing evaluates direct material suppliers on five qualification criteria 

ON Semiconductor evaluates 

suppliers based on five 

standardized qualification 

criteria 

Competitive Advantage 

Demonstrate potential competitive advantage on 

factors including cost, service, and technology 

Quality Systems 

Adopt recognized quality standards such as TS- 

16949 

Service Levels 

Support and participate in ON Semiconductor’s 

key programs and initiatives 

Critical Products 

Either offer products or services critical to the 

firm’s operations or unavailable through existing 

suppliers 

Demand Management Capability 

Maintain financial resources and infrastructure 

to support current and future demands. 

Source: ON Semiconductor; Procurement Strategy Council Research (2006) 

In addition to general qualification criteria, ON Semiconductor requires suppliers to 

adopt recognized industry-standard quality systems such as TS-16949. 

ON Semiconductor’s Strategic Sourcing team implements the following practices to 

ensure potential suppliers meet product quality requirements: 

Strategic Sourcing examines 

new direct suppliers’ quality 

standards through selfassessments 

and product 

inspections. 

• Communicate product quality requirements: Strategic Sourcing directs 

suppliers to an online supplier handbook that outlines the company’s 

supplier quality requirements. The handbook ensures suppliers comply with 

the company’s product quality standards both before and after contract 

signing. Additionally, supplier quality engineers inform individual suppliers 

of sample and data requirements and provide notification of final approval. 

• Collect and review supplier self-assessments: Strategic Sourcing requires 

all potential suppliers complete a quality system self-assessment based on 

the TS-16949 system and provide copies of quality certificates. Any issues 

identified are corrected prior to final supplier approval. 

• Confirm sample products’ quality levels: Prior to the first shipment, 

Strategic Sourcing implements the product verification procedure to ensure 

material conformation to specifications. To enable high supplier quality, the 

function reviews supplier sample materials and manufacturing capabilities 

through three steps: 

1. Conformance to specifications: To ensure new suppliers can 

manufacture products to company specifications, Strategic 

Sourcing requires suppliers submit product samples for inspection. 




The function verifies material conformance to electrical, chemical, 

structural, and mechanical requirements. 

ON Semiconductor conducts 

on-site quality assessments of 

all new suppliers. 

ON Semiconductor performs 

several reliability assessments 

to ensure supplier products are 

durable. 

2. Process capability: Strategic Sourcing conducts on-site quality 

assessments of all new suppliers as a systematic examination of 

manufacturing, packaging, and shipment processes. 

3. Product reliability: The Quality Department performs liability 

tests to ensure supplier materials conform to required 

specifications and meet process and product requirements. These 

tests include accelerated life and application testing. 

Once supplier product samples and manufacturing capabilities are inspected, 

Strategic Sourcing inputs all approved supplier information into a central repository 

called the Strategic Sourcing List. The repository enables Strategic Sourcing to 

identify approved suppliers for new sourcing opportunities and reduce the need to 

allocate resources to qualify additional suppliers. 

In addition to evaluating suppliers on consistent and objective qualification criteria, 

Strategic Sourcing inspects supplier product samples, performs on-site quality 

assessments, and tests product reliability. By incorporating material verification steps 

during the qualification process, Strategic Sourcing ensures new suppliers’ products 

conform to specification requirements. 




APPENDIX A: CADBURY SCHWEPPES’ SUPPLIER PREQUALIFICATION QUESTIONNAIRE 

Cadbury Schweppes has established a Vendor Approval Process for all new suppliers that uses the following detailed set of questions 

as part of the selection procedure. The prequalification questionnaire provides basic information on operations of the company and 

approach to issues of concern. Suppliers must meet minimum standards to conduct business with Cadbury Schweppes. 2 

1. MANAGEMENT & CONTACT INFORMATION 

1.1 Please provide details of your company 

Scoring 

Company Name 

Street Address 

Town 

County 

Post Code 

Country 

Web Site 

Company Details 

1.2 Please provide details of your primary contact 

Name 

Title 

Phone 

Fax 

Email 

Mobile/Cell Phone 

Primary Contact 

1.3 

If you are completing on behalf of a subsidiary company, provide your parent company details below. 

Parent Company Name 


Town 

County 

Post Code 

Country 

Web Site 

Parent Company Details 

2. PREREQUISITES 

2.1 Do you accept that any subsequent agreement could be based on the [company] "Standard Terms & Conditions" 

Yes 1 

Scoring 

2.2 Do you accept the [company] "Confidentiality/Non Disclosure Agreement" 

Yes 1 

2.3 Do you accept the "Operational Conditions of Supply" to [company] 

Yes 1 

2.4 Do you agree to work towards the [company] "Ethical Sourcing Standard" 

Yes 1 

0 




3. OPERATIONS - Delivery, Quality, Location 

3.1 Do you measure your delivery performance to your customers Yes 1 

Scoring 

3.2 As part of a formal programme do you document reasons for delivery failures and have action plans in place to prevent underlying 

Yes 1 

problems from recurring 

3.3 Do you have a documented policy/procedure that states that you will notify customers in advance if their requested delivery dates will be 

Yes 1 

missed 

3.4 

Please indicate which third-party certification/audit approval you have or are committed to achieving within 18 months 

from these [company]-approved programmes 

BRC Global Standard -- Food A Grade 

BRC Global Standard -- Food B Grade 

AIB Standard--Superior Rating 

AIB Standard--Excellence Rating 

IFS Standard--Higher Level 

BRC/IoP Global Standard--Food Packaging 1B (food contact material) 

AIB Food Contact Packaging Standard--Superior Rating 

AIB Food Contact Packaging Standard--Excellence 

Other 

3.5 If other or several, please specify below (ISO9001:2000 by itself is not sufficient): 

3.6 

To which recognized quality management systems are your operations certified 

ISO9000-2000 

Any others (please specify below) 

None 

3.7 If other, please specify below: 

3.8 Do you operate a documented quality-management system which covers the manufacture and supply of the product/service under consideration 

1 

Yes 

3.9 Do you comply with the food regulations applicable in both the country of origin/production and the country of sale 

Yes 1 

3.1 Do you have a formal and current business continuity/disaster recovery plan(s) in place that are available on request Note: These plans should 

Yes 1 

address both recovery of production capacity, product recall / withdrawal, and continuity of service. 

3.11 Does your organization maintain an active and formal Incident Management Team to deal with product integrity issues 

Yes 1 

3.12 Have you ever been involved in a voluntary withdrawal or mandatory recall regarding the materials to be supplied to [company] 

Yes 1 

3.13 If Yes, provide details and current status of event(s) 

3.14 Do you have the ability to specify which location produces supplies for [company] requirements Yes 1 

3.15 Can you demonstrate traceability of the raw materials used to produce products by batch or lot back to your supplier 

Yes 1 

3.16 Can you demonstrate traceability of products produced by batch or lot forward to your customer 

Yes 1 

3.17 Do you have someone responsible for quality in your organization 

3.18 Please provide his/her name, title, and function below: 




4. FINANCIAL/INSURANCE/LEGAL INFORMATION 

4.1 Please provide your Dun & Bradstreet number (if known) 

Scoring 

4.2 Please provide your Dun & Bradstreet ratings (if known) D&B rating 

D&B failure score 

4.3 Please provide the the following financial information for the last three financial years 

£ Sterling £ Sterling £ Sterling 

Turnover 

Pre-Tax Profit 

Current Assets 

Current Liabilities 

Please State Year 

Please State Base Currency Used 

Please State Exchange Rates Used 

(Please attach your last 3 years financial accounts) 

4.4 Do you hold the following insurance cover 

Public Liability/ General Third Party Liability 

Product Liability 

Employer Liability 

Professional Indemnity Insurance 

Product Recall Insurance 


Please State Exchange Rate Used 

Yes 

Yes 

Yes 

Yes 

Yes 

1 

1 

1 

1 

1 

Limit of Indemnity 

Per claim Aggregate 

£ Sterling £ Sterling 

Expiry 

4.5 

Please provide details of your insurance cover extensions 

Third-Party Property in Custody and Control 

Public Liability Product 

Sub limit 

£ Sterling £ Sterling £ Sterling 

Yes 1 Yes 1 

Financial Loss 

Contractual Liability 

Indemnity to Principal 


Please State Exchange Rate Used 

(Please provide written proof of cover from your insurer/broker) 

Yes 

Yes 

Yes 

1 Yes 1 

1 Yes 1 

1 Yes 1 

4.6 Does your recall insurance provide the following 

Yours 

Ours 

Recall costs 

Loss of Profits/Consequential Loss 

Accidental Contamination 

Malicious Tamper 

Yes 

Yes 

Yes 

Yes 

1 Yes 1 

1 Yes 1 

1 Yes 1 

1 Yes 1 

4.7 Is your organization currently involved in any claims and/or litigation Yes 1 

4.8 If Yes, provide details below: 




5. ETHICAL SOURCING STANDARDS - Environment, Health & Safety/ Human Rights and Ethical Trading/ Sustainable Agriculture/ Bribery 

and Corruption 

Scoring 

5.1 Specify country for location producing supplies for [company] requirement: 

5.2 

If your answer is "Other," please specify. If your factories able to supply [company] are in more than one country, please indicate the most important location in 

the previous question and others in this question: 

5.3 Specify the country where you buy raw materials used to make supplies for [company]: 

5.4 

If your answer is "Other," please specify. If you buy raw materials in more than one country, pelsae indicate the most important location in the previous question 

and others in this question: 

5.5 Has your company been charged with/fined for any infringements of national legislation in the last three years Yes 1 

5.6 Do you have a policy covering some / all issues included in the [company] "Ethical Sourcing Standard" that you implement with your 

Yes 1 

suppliers 

5.7 If yes, provide details below: 

5.8 If yes, do you track your performance Yes 1 

5.9 

Against which standard has your business undergone an assessment or audit of your ethical sourcing practices 

Self-assessment 

Customer assessment 

Third-party assessment 

None 

(Third-party includes SA8000/ETI, etc.) 

(Please provide copies) 

EHS (Environment, Health & Safety) 

5.10 Do you have one EHS (Environmental and Health & Safety) policy or separate Environmental and Health & Safety Policies 

Yes 1 

([Company] EHS policy attached -- please provide copies of yours) 

5.11 Who is responsible for EHS issues and performance in your company (Please provide contact details). 

5.12 Do you maintain a register of the Environmental and Health & Safety laws that apply to your sites and operations 

Yes 1 

5.13 Do you have a documented management system to manage EHS issues Yes 1 

5.14 Do you keep accident statistics Yes 1 

5.15 

If yes, please provide your accident statistics (total number of accidents and LTIFR - Lost Time Injury Frequency Rate per 200,000 

manhours) for last year: 

(Lost Time Injuries are those which are serious enough to cause an employee to be away from work) 

5.16 Have the health and safety risks for your company been formally assessed Yes 1 

5.17 Do you track your usage of energy (electricity, gas, oil, coal) and water at each site 

Yes 1 




HRET (Human Rights & Ethical Trading) 

5.18 Do you operate to an agreed Code of Practice with regard to ethical trading based, for example, on SA8000, Ethical Trading Initiative (ETI) 

Yes 1 

etc. 

5.19 Do you recognize unions and / or allow alternative means of worker representation 

Yes 1 

5.20 Are you willing to give an undertaking that forced labor is not/will not be used in your operations 

Yes 1 

5.21 Are you willing to give an undertaking that child labor is not/will not be used in your operations 

Yes 1 

5.22 Are you willing to give an undertaking that no physical or degrading punishment is used in the workplace 

Yes 1 

5.23 Do the working hours and remuneration in your organization meet local legal minimum standards and comply with local laws 

Yes 1 

5.24 Do you have a policy covering diversity-related issues and provide employees with equal opportunities 

Yes 1 

Sustainable Agriculture (If Applicable) 

5.25 Do you have a policy on sustainable agricultural practices for the raw materials you supply 

Yes 1 

5.26 Do you have systems in place to protect related ecosystems, habitats, biological diversity and wildlife conservation in the growing areas of 

Yes 1 

the raw materials you buy and/or supply 

Bribery and Corruption 

5.27 Do you have a policy on fraud within your organization Yes 1 

5.28 Do you have a policy on speaking up (whistle blowing) within your organization and/or do you provide a means for raising issues that could 

Yes 1 

include criminal conduct/illegal activity, dishonesty - theft/fraud, environmental or safety concerns, integrity of financial reporting, conflicts 

of interest, regulatory compliance 

5.29 Has your company or have any of its officers, agents or employees (during the course of their duties in relation to the company) ever been 

Yes 1 

or currently are, the subject of an investigation by a law enforcement/magistrate/custom agency/tax authority or any central/regional/local 

government authority 

0 

6. OTHER - General comments, Appendices 

6.1 Please confirm that a copy of this questionnaire has been completed for all sites that might supply [company]. Yes 1 

(If no, please confirm a separate questionnaire for each site) 

6.2 Any other general comments 

6.3 Signed 

Name 

Position in Organization 

Date 

6.4 Appendices ([company] conditions, agreements, standards & policies) Total Scoring 0 

1.1 1.2 1.3 1.4 

"Supplier User 

Guide Pre- 

Qualification 

Questionnaire" 

"Insurance, Legal 

Information" 

"Ethical Sourcing 

Standard" 

"[Company] 

Approved Third- 

Party Schemes" 




APPENDIX B: SALT RIVER PROJECT’S CONTRACTOR SAFETY MANAGEMENT PROGRAM QUESTIONNAIRE 

Salt River Project (SRP) requires potential suppliers to complete the following pre-qualification safety questionnaire during initial 

registration. This document enables the Procurement Services and Risk Management functions to evaluate supplier risk based on 

safety compliance history and training programs to track and improve health and safety performance. 

CONTRACTOR SAFETY MANAGEMENT PROGRAM (CSMP) 

Pre-Qualification Safety Questionnaire 

Omitting or reporting false information on this questionnaire could result in the 

disqualification or removal from the Supplier Information Database. 

SRP reserves the right to conduct random or for-cause audits of the information stated in this questionnaire. 

Additional documentation may be requested by SRP to support statements made on the questionnaire. 

Company Name 


City State Zip 

Company Web Address 

Name 

Title 

Signature: ______________________________ Date: 

Phone: 

Email Address: 

THIS SECTION FOR SRP USE ONLY SRP Vendor # 

Requested By: 

Submitted By: 

Date 

Date 

Scored By: Date CSMP Score: 

Reviewed By: 

(Safety Services) 

Date 

Final CSMP Score: 




CONTRACTOR PRE-QUALIFICATION SAFETY 

QUESTIONNAIRE 

REMEMBER 

This form MUST be completed and accompanied with all requested attachments for SRP 

review prior to any consideration being given to any interested contractual party. If you need 

additional space, please see page 4 or attach additional pages. 

Company / Safety Representative 

Name: 

Title: 

Mailing Address: 

City, State: 

ZIP: 

Phone Number: 

Email Address: 

The Following Information Is: 

Corporate 

Subsidiary 

Local 

State 

National 

Number of Employees 




A - SAFETY HISTORY 

1. EXPERIENCE MODIFICATION RATE (EMR) 

ATTACHMENT 1: Attach a copy of your insurance carrier’s certified letter of experience 

modification rating for the current year and each of the previous three years. 

Provide Workers Compensation EMR for your company for the current year plus 

each of the previous three (3) calendar years for your company as determined 

by the NCCI. 

YEAR EMR Comments 

Current 

2. OSHA NON-COMPLIANCE CITATIONS: 

List the number of upheld OSHA Non-Compliance Citations received in the 

current year plus each of the previous three (3) calendar years. Provide an 

explanation of the nature of each citation and each corresponding monetary 

penalty. 

YEAR No. Citations Upheld Please Explain (Attach additional sheets if needed) 

Current 

3. OSHA 300 Safety Information 

ATTACHMENT 2: Attach a copy of your current year OSHA 300 log sheet and the 

OSHA 200/300 log sheets for each of the previous three years. 

Please provide data for the current year plus each of the previous three (3) calendar years. 

Current Year 

(# of Months ) 

Total employee hours worked 

Number of Lost Time Accident/Illness 

Cases 

Total days away from work due to 

Injury/Illness 

Number of OSHA Recordable 

Injury/Illness Cases 

Note: Most of this information is available on the OSHA logs. 

3 Previous Calendar Years 




4. Number of Fatalities Current Year 

(# of Months: ) 

Number of Fatalities 

3 Previous Calendar Years 

Please provide detailed information for each fatality on a separate sheet. 

B – SAFETY & HEALTH PROGRAMS 

1. Does your company have a Substance Abuse Screening Program Yes No 

If “Yes”, does your program include: 

Pre-Hire Screening Testing Yes No 

Post Accident Testing Yes No 

Random Testing Yes No 

If “YES”, you may be required to submit a copy of your Substance Abuse 

Program. 

2. Does your company have a written Occupational Safety and Health Program 

Yes 

No 

If “YES”, you may be required to submit a copy of your Occupational 

Safety and Health Program. 

3. Do your work crews conduct daily pre-work Job Briefings (Tailboards) before the 

start of each shift/job 

Yes 

No 

4. Does your company conduct valid Driver’s License Record Verification 

on ALL employees required to operate a company vehicle on the job Yes No 

If “Yes”, indicate when the verification is done, and with what frequency. 




C – CERTIFICATION, SPECIAL TRAINING 

1. Does your company document employee specialty certifications for specific trades, 

equipment or job functions (i.e., CDL, Crane Operation, Welding, etc.) Yes No 

If “Yes”, list the types of specialty certifications maintained in your company files. 

Certifications 

2. Have any of your employees completed OSHA 500 or OSHA 501 training Yes No 

Comments: 

3. Have any of your employees completed OSHA 10-Hour or OSHA 30-Hour Training 

Yes 

Comments: 

No 

4. What other training have your employees completed (For example, the Southwest Safety 

Training Alliance Program, Personal protective Equipment, Excavation/Trenching Safety, 

etc.) 

Please identify the type and frequency of the training provided. 

EXPLANATIONS 

Attach additional pages if additional space is required 




THE RESEARCH PROCESS IN BRIEF 

Project Aims and Research Methodology 

Project Aims 

This document seeks to provide senior procurement executives with strategies for 

establishing comprehensive supplier qualification processes. Because it employs an 

abbreviated research process to maximize its timeliness, this project (by design) 

does not provide an exhaustive evaluation of the problem or the practice. Looking 

forward, the Procurement Strategy Council plans to periodically update this 

collection as new practices and insights emerge. 

Research 

Methodology 

While this report describes the opinions of experts and others regarding an issue of 

key strategic concern, we cannot emphasize enough that (consistent with our 

charter) we are not recommending any particular course of action. 

This document is compiled from extensive primary and secondary research completed 

by the Procurement Strategy Council. 

Professional Services Note: 

This project was researched and written to fulfill the specific request of a single member of the 

Procurement Strategy Council and as a result may not satisfy the information needs of other 

members. In its short answer research, the Procurement Strategy Council refrains from endorsing 

or recommending a particular product, service or program in any respect, nor to provide an 

exhaustive solution framework for the underlying problem. Sources are contacted at random within 

the parameters set by the requesting member, and the resulting sample is rarely of statistically 

significant size. That said, it is the goal of the Procurement Strategy Council to provide a balanced 

review of the study topic within the parameters of this project. The Procurement Strategy Council 

encourages members who have additional questions about this topic to assign research projects of 

their own design. 

ENDNOTES 

1 Procurement Strategy Council. “Supplier Certification and Auditing Processes in the Consumer Goods 

Industry.” Washington, DC: Corporate Executive Board (December 2003). 

2 Procurement Strategy Council. “Procurement Social Responsibility.” Washington, DC: Corporate 

Executive Board (March 2006).

Establishing Comprehensive Supplier Qualification Processes

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