Supplier Eligibility for Sourcing

To participate in sourcing negotiations, suppliers must meet the criteria and standards for doing business. For example, a supplier may need to show financial viability and agree to follow certain code of conduct requirements.

Your assessment of these requirements can now establish or remove a supplier's eligibility for participation in sourcing, helping you manage risk and enforce your policies. You can refer to this eligibility outcome during sourcing. You can assess a supplier for sourcing eligibility when the supplier first registers as well as with additional assessments over time.

You can qualify a supplier even after the supplier onboarding. Only eligible suppliers can participate in sourcing negotiations in a procurement BU. When there is no BU level entry, the supplier's participation is determined by the supplier's default eligibility. A supplier's sourcing eligibility remains active until the next time the supplier is reassessed, even after the initial assessment has expired, so there is no gap in the supplier's ability to participate in sourcing activities.

How You Qualify Supplier During Supplier Registration

You can request the supplier to respond to questions pertaining to sourcing eligibility during registration, or you can set up the application to automatically send out a questionnaire on sourcing eligibility to the supplier and internal responder once the supplier's registration is approved.

How You Qualify Supplier After Supplier Onboarding

After the initial onboarding you can assess the supplier's sourcing eligibility by launching an initiative for the sourcing assessment. You can do this to reassess the supplier's sourcing eligibility in the inviting procurement BU of the registration, after the initial evaluation and to assess the supplier's sourcing eligibility in any Procurement BU.

If you have the privilege you can manually set the supplier's sourcing eligibility or overwrite the sourcing eligibility derived from the assessment.

How You Share Supplier's Sourcing Eligibility Status

If a single Procurement BU is responsible to assess the supplier's sourcing eligibility for the organization, you can configure the qualification model such that the sourcing eligibility status becomes the default sourcing eligibility for the supplier. It determines the supplier's sourcing eligibility in any other Procurement BUs without its own sourcing assessment.

How You Configure the Default Supplier Eligibility Status

In the Setup and Maintenance work area, go to the Configure Supplier Qualification Controls task and set the default supplier eligibility status.