Buyer’s Checklist for Vendor Relationship and Sourcing Strategy

A great product line can only take you so far — your vendor relationships and sourcing strategy play a huge role in profitability, reliability, and sustainability. Whether you’re onboarding new suppliers or reevaluating old ones, having a structured framework helps you make decisions that support long-term growth.

This buyer’s checklist outlines what to evaluate in vendor relationships and how your ERP system can help manage supplier data, track performance, and improve collaboration.

🧩 WHAT MAKES A GREAT VENDOR IN BUILDING MATERIALS?

• Product Availability and Fill Rate

Can they consistently deliver in full and on time?

Do they maintain adequate stock for your top-moving SKUs?

• Quality and Certification Transparency

Can they provide:

Product certifications (FSC, UL, EPD)?

Mill test reports or SDS?

Performance test results?

• Pricing and Flexibility

Are their price structures competitive and predictable?

Do they offer volume discounts or rebates?

Can they accommodate short lead-time or project-specific pricing?

• Logistics and Delivery Reliability

On-time rate across all POs

Freight tracking or EDI support

Handling best practices for fragile or bulk materials

• Sustainability & ESG Alignment

Green certifications or sourcing declarations

Packaging reuse or take-back programs

Sustainable operations or carbon reporting capabilities

🛠️ ERP FEATURES TO POWER YOUR SOURCING STRATEGY

• Vendor Scorecards

Rate vendors based on:

Fill rate

Cost accuracy

Lead time consistency

Sustainability performance

• Document Libraries

Store all certifications, contracts, insurance docs, and audit logs

Make them accessible by SKU, category, or vendor profile

• Purchase Planning Tools

Set minimums, lead times, and replenishment triggers by supplier

Compare landed costs across multiple vendors in real time

• Return & Dispute Logs

Track product defects, missed shipments, or invoice discrepancies

Create visibility into recurring issues and dispute resolutions

✅ BUYER’S CHECKLIST

Fill rate above 95%

Compliance docs on file (EPDs, SDS, etc.)

On-time delivery history verified

ERP integration enabled (EDI, live PO status)

ESG or sustainability alignment confirmed

Price structure supports margin targets

Returns and disputes transparently managed

🏁 FINAL THOUGHTS

Vendor performance can make or break your supply chain. By pairing smart sourcing strategies with ERP insights, you give your team the tools to build resilient, profitable, and transparent relationships that benefit you and your customers.

📞 Want to build scorecards, automate vendor evaluations, or compare sourcing metrics inside your ERP? Let’s tighten up your supply chain strategy.