Source-to-PayWhy formalise onboarding
Onboarding is when a new supplier enters the company’s systems. It is also the best time to check that it legally exists, is compliant, can deliver what is expected and has genuine bank details. Once the supplier is active, these checks become much harder to enforce.
1. Legal identity
- Legal name and legal form
- Common company identifier (ICE), format-checked
- Tax ID and trade register number
- Social security (CNSS) registration number
- Head office and site addresses
- Check for duplicates in the supplier master
2. Compliance and documents
- Valid tax compliance certificate
- Valid social security (CNSS) certificate
- Articles and signatory powers for major contracts
- Insurance (liability, plus activity-specific cover)
- Certifications relevant to the category (quality, environment, safety)
- Expiry date recorded for every document
3. Bank details
Bank detail fraud is one of the costliest risks for accounts payable. Require a bank certificate in the supplier’s name, check it matches the legal name, and subject any later change to dual approval and verification through an independent channel (for example, a call to an already known contact).
4. Capability and compliance
- Questionnaire suited to the category (a subcontractor is not asked the same as a stationery supplier)
- HSE questionnaire for on-site contractors
- ESG and ethics commitments in line with your policy
- Client references and production or service capacity
- Financial health for strategic suppliers
5. Reviews and decision
Have each part of the file reviewed by the relevant function: procurement, quality, HSE, finance, legal. Then formalise the decision: approval, conditional approval or rejection, with the authorised scope (categories, entities, amount) and a review date.
6. After approval
- Monitor document expiry and send automatic reminders
- Evaluate the supplier regularly
- Block orders or payments in case of non-compliance
- Let the supplier update its details on a portal, with approval of sensitive changes
Frequently asked questions
Should every supplier provide the same documents?
No. Requirements should depend on risk: a one-off, low-value supplier is not treated like a subcontractor working on site.
How often should a file be reviewed?
Documents with expiry dates are monitored continuously; the full file can be reviewed every one to three years depending on criticality.
Who should enter the information?
Ideally the supplier itself, through a portal, with an internal check before activation: it reduces data entry and errors.