Compliance is the term used to determine whether or not a supplier is adhering to the rules governing their ability to trade with you as their customer. Suppliers may move from a state of 'Compliance' to a state of 'Non-Compliance' throughout their lifecycle, and this is indicated to users of Canopy through the Compliance Indicator.
In this article you will learn:
How Compliance is graded on a Supplier Profile
How Compliance is graded on a Supplier Profile
A supplier may only exist in one compliance state at any one time.
Canopy utilises five different grades of compliance, helping the user to gain an understanding of whether the supplier is available to be traded with.
The three main states of compliance are:
Compliant - The supplier has met all the required compliance criteria and is available to be traded with.
Caution - The supplier is moving into an 'at risk' zone where they are about to fall out of compliance. This is most frequently caused by one of more critical documents about to expire. You should take care when trading with the supplier, as they may shortly turn non-compliant.
Non-Compliant - The supplier has breached one or more of the compliance criteria, and has fallen out of compliance. You should avoid trading with the supplier until the situation is rectified.
In addition, Canopy includes two further states to indicate that the supplier's compliance is yet to be determined, as follows:
Onboarding - The supplier is onboarding to Canopy for the first time. As such, they have not passed through the necessary approval gates to determine whether or not they are compliant. Suppliers in this state should not be traded with until they have completed onboarding and you have built an understanding of their compliance.
Record Created - A Record Created supplier is a type of supplier record that is being used exclusively as an internal repository of information. As such, the supplier themselves is not in control of their profile (they have not been invited) and the profile had not started the onboarding workflow process. Compliance cannot be determined for this type of record. Any trade conducted with these suppliers should be done so with extreme caution.
Click here for descriptions of the individual compliance icons.
How is Compliance indicated?
The overall compliance of a supplier is governed through the Compliance Indicator. The Compliance Indicator is visible at all times on the Supplier Profile, and on the Supplier List.
Because there is only one overall indicator of compliance, the supplier only need to breach one of your compliance rules in order to fall non-compliant.