An Approved Vendor List (AVL) is a document that contains a list of suppliers that have been evaluated and approved by a company's procurement department. The AVL serves as a reference guide for the company's employees when they need to purchase goods or services.
Supplier management is a critical aspect of any company's success, as it directly affects the quality of the goods or services the company produces. Having an AVL ensures that a company only works with suppliers who meet its quality standards, which minimizes the risk of defective products or service failures.
An AVL ensures Quality Assurance by setting specific criteria that suppliers must meet before they can be added to the list. These criteria may include factors such as product quality, pricing, delivery timeframes, and compliance with industry regulations. Once a supplier has been approved, they must continue to meet these standards to remain on the list.
An AVL simplifies the procurement process by providing employees with a pre-approved list of suppliers. This saves time and resources that would otherwise be spent vetting suppliers individually. The AVL also ensures consistency in procurement decisions across different departments within the organization.
The AVL assists in vendor selection by providing a shortlist of pre-approved suppliers that have been evaluated and deemed trustworthy. This speeds up the vendor selection process and reduces the risk of selecting unreliable or untested vendors.
An AVL benefits the supply chain by providing greater transparency and accountability in supplier relationships. It also helps to minimize supply chain disruptions by ensuring that only reliable suppliers are used.
