The organization shall ensure that purchased product conforms to specified purchase requirements. The type and extent of control applied to the supplier and the purchased product shall be dependent upon the effect of the purchased product on subsequent product realization or the final product.

The organization shall evaluate and select suppliers based on their ability to supply product in accordance with the organization’s requirements. Criteria for selection, evaluation and re-evaluation shall be established. Records of the results of evaluations and any necessary actions arising from the evaluation shall be maintained (see 4.2.4).

(from BS EN ISO 9001:2000)

This is one area where an organization doesn’t need a documented procedure—but it’s always a good idea to have one. In a nutshell, this clause requires an organization to control purchasing and its processes to ensure that the product or service that was purchased conforms to specified requirements.

Typically in an organization, everyone is authorized to buy certain items to maintain a productive working environment. However, there are often spending limits depending on the level of the employee. A purchasing procedure can define these levels easily in an organization to maintain proper spending controls.

One of the most important features of this clause is its relationship to effective communication with suppliers, which is one of the eight quality management principles. By communicating with your suppliers, you can ensure that in the process of satisfying your needs, they also gain benefits in terms of decreased cost and improved performance.

Indeed, managing the supply chain effectively is becoming one of the most important elements of modern business. One sector that has made a virtual science of this concept is the automotive industry, which has had a formal process to address supplier relationships for years. By managing suppliers effectively, the automotive sector has enhanced its own systems and performance dramatically.

The same approach is encouraged for any organization, although it doesn’t have to be as intense or formal as the automotive industry.

One way to address this clause is to have a process (or a procedure) to approve suppliers with your requirements in mind. You can do this by having an “approved vendor or supplier list.” This isn’t a requirement, but it is one of the easier ways to address the requirements of this clause. Criteria to consider for supplier requirements may include quality, price or even just an organization that you trust. The requirements are up to you, but it’s a good idea to document them and communicate them to your supplier continuously.

Supplier evaluation is an important step in this clause, requiring organizations to define the criteria to select, evaluate and re-evaluate all critical suppliers. It is also a good idea to communicate the evaluation of your suppliers to enhance performance at every opportunity.