All 22 Vendor Management questions
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What is the vendor master file? What is vendor onboarding and what checks are involved? What are payment terms and how are they expressed? What is a W-9 (or W-8) form and why does AP collect it? Why is standardized vendor naming and data important? What is the purpose of a vendor onboarding checklist? Why are controls over vendor bank-detail changes so important? How do you detect and prevent duplicate vendors in the master file? What is a supplier statement reconciliation and why perform it? How does vendor segmentation improve AP management?
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Accounts Payable & Receivable › Vendor Management

What is a preferred supplier list and why maintain one?

Beginner

Answer

A preferred supplier list names vetted vendors with negotiated pricing, terms, and quality standards that buyers should use first. It concentrates spend for better terms, ensures compliance and quality, simplifies onboarding, and reduces maverick (off-contract) buying that erodes savings and control.
Real-world example Buyers must choose from the preferred supplier list for IT hardware, consolidating spend and securing volume discounts.

Common follow-ups: What is maverick spend? | How does a preferred list improve terms?

Credit Control Purchase Orders & 3-Way Matching Vendor Management
All 22 Vendor Management questions