- Owner
- Procurement Manager
- Effective date
- September 15, 2026
- Review cycle
- Every 12 months
1.Purpose
To select new suppliers through a consistent, documented process that compares options fairly on price, quality, capacity and risk before committing to a contract.
2.Scope
Applies to sourcing and selecting a new supplier for a good or service category not already covered by an approved supplier. Ongoing supplier performance evaluation is covered by a separate SOP.
Definitions
- RFQ
- Request for Quote, a solicitation asking suppliers to submit pricing for defined items or services.
- RFP
- Request for Proposal, a broader solicitation asking suppliers to propose a solution, often for complex services.
- Scoring matrix
- A structured tool used to score and compare supplier bids against weighted criteria such as price, quality and delivery.
- Supplier onboarding
- The process of setting up an awarded supplier in company systems, including tax, banking and compliance documentation.
3.Responsibilities
- Category Buyer
- Defines requirements, runs the solicitation, and scores supplier bids.
- Procurement Manager
- Approves the solicitation approach, reviews scoring, and approves the final supplier award.
- Stakeholder Requester
- Provides technical or business requirements and participates in bid evaluation for their category.
- Compliance Officer
- Reviews the awarded supplier's compliance documentation, insurance and risk profile before onboarding.
RACI matrix
| Activity | Category Buyer | Procurement Manager | Stakeholder Requester | Compliance Officer |
|---|---|---|---|---|
| Define requirements and criteria | R/A | A | C | - |
| Issue RFQ or RFP | R/A | A | I | - |
| Score and compare bids | R | A | R | - |
| Approve the supplier award | R | R/A | I | C |
| Complete supplier onboarding | R | A | I | R |
R = Responsible, A = Accountable, C = Consulted, I = Informed
4.Materials and PPE
Materials, tools and systems
- →RFQ or RFP template
- →Scoring matrix with weighted criteria
- →Supplier compliance and insurance checklist
- →Supplier onboarding form
- →Bid comparison spreadsheet
- →Contract or master services agreement template
5.Procedure
- 5.1
Define the requirement
Category BuyerWork with the stakeholder requester to define the specific item, service level, quantity, timeline and any technical specification needed before sourcing suppliers.
- 5.2
Set the evaluation criteria
Category BuyerDefine the scoring matrix criteria such as price, quality, lead time, capacity and risk, and assign a weight to each based on what matters most for this category.
Checkpoint: Evaluation criteria and weights are finalized before any bid is received, not adjusted afterward.
- 5.3
Identify candidate suppliers
Category BuyerIdentify a shortlist of candidate suppliers through market research, referrals or an existing supplier database, aiming for enough candidates to create real competition.
- 5.4
Issue the RFQ or RFP
Category BuyerSend the RFQ or RFP to shortlisted suppliers with a clear deadline, required format for responses, and the specifications defined earlier.
- 5.5
Answer supplier questions consistently
Category BuyerAnswer clarifying questions from suppliers during the bidding period, and share any material clarification with all participating suppliers to keep the process fair.
Warning: Never share one supplier's pricing or proposal details with a competing supplier during an active solicitation.
- 5.6
Collect and log bids
Category BuyerCollect all bids by the deadline and log them in the bid comparison spreadsheet, noting any bid received late or incomplete.
- 5.7
Score the bids
Category BuyerScore each bid against the weighted criteria in the scoring matrix, involving the stakeholder requester for technical or quality-related scoring.
- 5.8
Shortlist top bids for negotiation
Category BuyerIdentify the top-scoring bids and negotiate on price, terms or scope where there is room to improve the offer before a final decision.
- 5.9
Review compliance and risk
Compliance OfficerReview the leading candidate's compliance documentation, insurance coverage and any available risk or financial stability information before recommending an award.
Checkpoint: Compliance and insurance documentation is reviewed and cleared before a supplier is awarded the contract.
- 5.10
Approve the supplier award
Procurement ManagerReview the final scoring, negotiation outcome and compliance review, and approve the supplier award and contract terms.
- 5.11
Notify suppliers of the outcome
Category BuyerNotify the winning supplier to begin contracting, and notify unsuccessful bidders that the opportunity has been awarded, without disclosing competitors' pricing.
- 5.12
Onboard the new supplier
Category BuyerComplete supplier onboarding, including tax and banking setup, adding them to the approved supplier catalog, and scheduling the first performance review checkpoint.
6.Quality checks
- →Evaluation criteria and weights are set before bids are received.
- →All participating suppliers receive the same clarifications during the solicitation.
- →Compliance and insurance documentation is cleared before a supplier is awarded.
- →The awarded supplier is added to the approved catalog only after onboarding is complete.
7.Records
- →RFQ or RFP documents
- →Bid comparison and scoring matrix
- →Compliance and insurance review results
- →Supplier award and onboarding records
8.KPIs
- →Average time from requirement defined to supplier awarded
- →Number of qualified bids received per solicitation
- →Percentage of awards going to the top-scored bid
- →New supplier onboarding completion time
9.Common mistakes
- →Changing evaluation criteria after bids have already been received.
- →Sharing one supplier's proposal details with a competing bidder.
- →Awarding a contract before compliance and insurance review is complete.
- →Skipping formal scoring in favor of an informal, undocumented decision.
10.Revision history
| Revision | Date | Description | Reviewed by |
|---|---|---|---|
| 1.0 | September 15, 2026 | Initial release | Ilia Pirozhenko |
This is a template. Adapt it to your organization, equipment and local regulations before use.
