Product Overview

Summary: This Supplier Verification Standard Operating Procedure provides a clear, repeatable process for assessing, approving, and monitoring suppliers before they impact your operations. It helps Australian businesses protect quality, continuity of supply, and compliance obligations by ensuring every supplier is vetted against defined commercial, ethical, and regulatory criteria.

Reliable suppliers are critical to product quality, service delivery, and your organisation’s reputation. This Supplier Verification Standard Operating Procedure sets out a structured, defensible process for evaluating new and existing suppliers before they are onboarded or re-approved. It defines how to collect and review key information such as insurances, certifications, WHS performance, modern slavery declarations, financial stability, and capability to meet your technical and service requirements. The SOP is written for the Australian context, aligning supplier checks with local legislation, industry standards, and typical prequalification practices.

By implementing this SOP, your business can reduce the risk of supply chain disruptions, non‑conforming products, unethical practices, and non-compliance with WHS or environmental expectations. It standardises how different teams assess suppliers, supports transparent decision-making, and creates an audit trail that stands up to internal and external scrutiny. Whether you are sourcing critical materials, subcontracted labour, or professional services, this procedure helps ensure that every supplier you engage is competent, compliant, and aligned with your organisation’s risk appetite and values.

Key Benefits

• Standardise supplier prequalification and approval across all business units.
• Reduce the risk of engaging non-compliant, unsafe, or unreliable suppliers.
• Strengthen due diligence for WHS, environmental, and ethical sourcing obligations.
• Improve traceability and audit readiness with consistent documentation and approval records.
• Streamline onboarding, review, and re-approval of suppliers to support continuity of supply.

Who is this for?

• Procurement Managers
• Supply Chain Managers
• Operations Managers
• Quality Assurance Managers
• WHS and Compliance Managers
• Finance Managers
• Project Managers
• Business Owners and Directors
• Category Managers
• Contracts and Commercial Managers

Included Sections

• 1.0 Purpose and Scope
• 2.0 Definitions and Key Terms
• 3.0 Roles and Responsibilities
• 4.0 Supplier Categories and Risk Levels
• 5.0 Supplier Prequalification Requirements
• 6.0 Information and Documentation to be Collected
• 7.0 WHS, Environmental and Ethical Compliance Checks
• 8.0 Financial and Capability Assessment
• 9.0 Evaluation Criteria and Scoring Methodology
• 10.0 Approval, Conditional Approval and Rejection Process
• 11.0 Supplier Onboarding and Record Creation
• 12.0 Ongoing Performance Monitoring and Periodic Re-Verification
• 13.0 Managing Non-Conformances and Corrective Actions
• 14.0 Document Control, Records and Audit Trail
• 15.0 Review, Continuous Improvement and Related Procedures

Legislation & References

• ISO 9001: Quality management systems – Requirements (as applied in Australian organisations)
• ISO 20400: Sustainable procurement – Guidance
• Modern Slavery Act 2018 (Cth)
• Work Health and Safety Act 2011 (Cth) and equivalent state and territory WHS Acts and Regulations
• AS ISO 19600 / ISO 37301: Compliance management systems (guidance for compliance-focused supplier checks)
• AS/NZS ISO 31000: Risk management – Guidelines