What is an Approved Vendor List (AVL)?

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Approved Vendor List (AVL) Definition

An approved vendor list (AVL) is a compiled list of all the vendors or suppliers (also referred to as an “Approved Supplier List” or “ASL”) approved by a company as sources from which to purchase parts or materials.

Approved Vendor List (AVL) software screen capture

Additional Information

Dr. Carter developed ten criteria, commonly referred to as the 10c model, to help businesses better evaluate vendors or suppliers for approval. The model includes these ten criteria:

  1. Competency
  2. Capacity
  3. Commitment to Quality
  4. Consistency of Performance
  5. Cost
  6. Cash and Finance
  7. Communication
  8. Control of Internal Processes
  9. CSR
  10. Culture

* Source: https://www.10cmodelsupplierselection.com/the-10c-model/

FAQs

How do I make an approved vendor list?

Use contracts and accounts payable records to compile a listing of all current vendors that provide parts/services. Ask stakeholders to verify and specify the following information for each vendor on the list:

  • Contact information
  • Description of parts/services provided
  • Overall performance rating
  • Does vendor have access to proprietary product information/protected company data? (Yes/No)
  • Designation of vendor’s role in your operation (i.e., critical, important, or useful)

Once the AVL is created, you should remove vendors with unacceptable performance ratings and establish an approval process for adding and/or removing vendors in future revisions.

*Source: https://planergy.com

Why is an approved vendor list important?

An approved vendor list (AVL) reduces risk by ensuring that all vendors are properly vetted by an organization and meet its requirements for quality, pricing, delivery, and other established criteria.

*Source: https://fitrix.com

What's a preferred vendor list?

A preferred vendor list is a compilation of vendors that are deemed “top performers” after thorough assessment and review by an organization. These vendors are typically more willing to negotiate on a company’s terms to meet pricing requirements.

*Source: https://www.vroozi.com

4 Tips for
Mastering Your
Master Parts List

The master parts list encompasses everything you need to know to order, build, receive, and qualify your parts – drawings, specifications, the approved manufacturers list (AML), and the approved vendors list (AVL).

Here are 4 tips to keep your master parts list in check and avoid ordering mistakes and bottlenecks.

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Optimizing Supply Chain Efficiency: The Integral Role of PLM and QMS in Managing the Approved Vendor List

Product lifecycle management (PLM) and quality management systems (QMS) help firms manage their approved vendor list (AVL), which is a critical resource for ensuring that vendors fulfill set quality standards and compliance criteria. PLM and QMS work together to ensure that the AVL is more than simply a list; it is a dynamic tool for managing vendor relationships, product quality, and compliance, all of which contribute to the supply chain’s efficiency and effectiveness.

Streamlining Vendor Management with PLM: Enhancing Compliance and Traceability

PLM solutions contribute by centralizing and integrating supplier and product data throughout the product’s lifecycle. This integration enables smooth tracking of which vendors supply materials or components for specific products, consequently improving traceability and compliance with standards such as RoHS or ITAR. PLM helps to evaluate vendors against product specifications and standards, ensuring that only eligible vendors are evaluated for inclusion in the AVL.

Ensuring Vendor Integrity with QMS: Continuous Monitoring and Quality Assurance

A QMS system is critical to maintaining the AVL’s integrity by continuously monitoring and evaluating vendor performance against quality criteria. QMS processes allow enterprises to conduct regular audits and assessments of vendors, ensuring that they continuously fulfill the required requirements for product safety, quality, and regulatory compliance. QMS assists in updating the AVL by adopting corrective measures and continuous improvement processes based on audit findings, deleting noncompliant suppliers, and adding new ones that fulfill the demanding standards.