Answer library

Vendor approval process template for a small team

A plain vendor approval process template for a 5 to 50 person US team, with the ten questions people will ask and a blank for each answer.

Teams buy tools and services faster than they write the rules. A short vendor approval process keeps spending, data and contracts under one pair of eyes.

A template with blanks, not legal advice. Rules on pay, leave and data vary by state, so check yours.

The template

When approval is needed

  • A new vendor needs approval when it costs more than [amount] a year, handles [customer or employee data], or needs a contract longer than [number] months.
  • Under that, the team lead can approve and tells [person] after.

What to send

  • Send [person] the vendor name, what it does, the cost, who will use it, what data it will see, and the alternatives you considered.
  • Use the form at [link].

What we check

  • Price and renewal terms, how to cancel, who owns the data, where it is stored, and who can access it.
  • Security and privacy questions: [list]. Contracts are signed by [person] only.

Decision and records

  • [Person] answers within [number] business days. The decision, the date and the reason are saved in [place].
  • Each vendor has an owner who reviews it by [date] each year.

Who owns this process

  • Owner: [name]. Last confirmed: [date]. Check again by: [date].

The ten questions your team will ask

Write each answer once, with an owner and the date you last confirmed it. These ten answers are what a bot or a shared FAQ should answer from.

  1. 1.Do I need approval to try a new tool?

    Answer: [The amount and data level that trigger approval, and what a free trial counts as.]

    Owner: [name]. Last confirmed: [date].

  2. 2.Who approves a vendor?

    Answer: [A named person, and a backup.]

    Owner: [name]. Last confirmed: [date].

  3. 3.What do I need to send them?

    Answer: [The short list in the form.]

    Owner: [name]. Last confirmed: [date].

  4. 4.How long will it take?

    Answer: [The answer time in business days.]

    Owner: [name]. Last confirmed: [date].

  5. 5.Can I sign up with my company email?

    Answer: [Your rule, including for free tools.]

    Owner: [name]. Last confirmed: [date].

  6. 6.Who can sign a contract?

    Answer: [A named person only.]

    Owner: [name]. Last confirmed: [date].

  7. 7.What if the vendor will see customer data?

    Answer: [The extra checks, and who runs them.]

    Owner: [name]. Last confirmed: [date].

  8. 8.How do we handle renewals?

    Answer: [Who is told, and how far ahead.]

    Owner: [name]. Last confirmed: [date].

  9. 9.How do I cancel a tool we no longer use?

    Answer: [Who cancels, and how it is recorded.]

    Owner: [name]. Last confirmed: [date].

  10. 10.Where is the list of approved vendors?

    Answer: [The link, and who keeps it current.]

    Owner: [name]. Last confirmed: [date].

Before you publish it

  • Decide the data rule first: which data must never go to a new vendor without a check.
  • Keep one list of vendors with owner, cost and renewal date.
  • Test your bot or FAQ with the ten questions before you rely on it.

Want to check a bot against these questions? Use the free honesty test, or turn the answers into a shareable FAQ with the team FAQ builder.

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Common questions

  • A short set of steps for deciding whether to buy a tool or service: who asks, who checks price, data and contract terms, and who decides.

  • One page and one form. If it takes longer than a few minutes to ask, people will skip it.

  • One named person for contracts and data, and team leads for small purchases below your limit.

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