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Approved Suppliers


Purchasing can be controlled for goods and services by requiring the system to enable purchasing from approved or preferred suppliers only. To enforce this level of control, a link must exist between a product or category and the approved and/or preferred suppliers. Maintaining the approved suppliers list is a manual process that must be managed internally. It is possible to have purchases restricted for some products or categories but not all. Should a user try to purchase from a non-approved supplier where approved suppliers have been configured, they will be presented with an error message.


The purpose of approved suppliers is to enforce a level of control in purchasing goods and services. Certain industries such as chemical manufacturing align with rigorous industry regulations making this high level of control necessary. Alternatively, for businesses wishing to better evaluate and control the procurement of goods from suppliers, this functionality is also useful.


Business X purchases a chemical coating that is applied to produce non-stick cooking pans. There is a government regulation in place that states purchasing of the chemical must come from a supplier that holds a certain safety compliance certification that is renewed yearly.

Business X keeps the supplier certification on file attached to the supplier record. An internal staff member is responsible for keeping this file up to date each time the certification is renewed.

Once the certifications are present on the supplier record, approved suppliers are specified on the product or category record.

7 suppliers are available to supply the chemical to business X. After review, 2 were deemed poor performers for delivering on time and removed from the approved suppliers list, 4 were listed as approved and 1 supplier was updated to be the preferred supplier of the chemical.

The system takes into account this hierarchy of preference. If a user attempted to purchase the chemical from a supplier that was not documented on the approved supplier list, they would be presented with an error.

In Dynamics 365

Approved suppliers can be outlined on the product category.

Approved suppliers within procurement categories.

Approved suppliers can be outlined on the released product.

Approved suppliers within the released product.

APQC Framework

Please find below the relevant PCF ID’s.

Level 1 Category: 10216

Level 2 Process Group: 10280

Level 3 Process: 10299