Supplier Management
How often should businesses review suppliers?
There's no single answer — but there is a sensible cadence based on criticality, spend and contract renewal timing.
The general rule
Every supplier should be reviewed at least annually, and always at least 30 days before the notice deadline. Calculate that deadline as renewal date minus notice period.
By criticality and spend
- Critical or high spend (core IT, insurance, key software): review every 6 months
- Medium (professional services, secondary tools): review annually, at least 30 days before the notice deadline
- Low (utilities, minor tools): annual sweep
Trigger-based reviews
Review a supplier when:
- Performance has deteriorated
- Your usage has materially changed
- A cheaper or better alternative appears
- The supplier changes ownership or pricing
What "a review" actually means
A review is not just re-reading the contract. Use the Supplier Review Checklist to cover information, performance, commercial and risk questions.
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