The compliance of a supplier may be determined through two primary methods:
- The approval of a supplier via the appropriate workflow and by persons with the right authority;
- Specific data points and fields in the supplier's record.
In this article you will learn:
How approval governs compliance
How data points govern compliance
How approval governs compliance
A supplier is unable to achieve 'Compliant' status until they have been approved by the relevant authorities, in accordance with your workflow.
Failure to meet the necessary threshold for approval will result in the supplier being rejected, and the Supplier Profile being marked as 'Non-Compliant'.
Suppliers who are rejected may be given an opportunity to rectify the reason for rejection, and given another chance to be assessed by the Approvers. To do this, please 'unreject' the supplier and initiate the Return To Supplier workflow step. The Supplier Profile will be recovered into the status they were in when they were rejected, and allow the supplier to edit and resubmit their profile.
Click here to learn more about the Return To Supplier process.
How data points govern compliance
Any field in Canopy may be used to govern the compliance of a supplier.
This may be done in a number of different ways, as follows:
- Compliance may require that a supplier must answer a particular question. In this case, the question should be set to 'mandatory' on the Supplier Profile. This will block the supplier from being able to submit their profile for approval until the question has been answered. Refusal to answer a mandatory question will mean the supplier cannot complete the approval process, and may be rejected.
- Compliance may require that the supplier provides a specific answer to a question. For example, the supplier may be required to hold a certain type of insurance or have an office in the country of supply. Refusal to do so would result in their non-compliance. In this case, the question should be configured to only accept the desired response. If the supplier provides an answer that breaches the rules of compliance, they will be blocked from submitting their profile for approval until the answer is changed. If the supplier is unable to meet these requirements, they will be unable to complete the approval process, and may be rejected.
- Compliance may require certain documents to remain up to date. For example, the supplier may be required to hold valid insurance, ISO certification or to complete an annual audit by a certain date. You may even wish to link this to the supplier's contract. In this case, Canopy will monitor the expiry dates of these critical documents and trigger non-compliance in the event the documents expire without being updated. In the event of document expiry, Canopy allows for a grace period to give suppliers a chance to update their documentation before non-compliance is triggered.
Click here to find out more about the grace period.
A supplier only needs to breach one of these compliance rules in order to fall non-compliant.