CFO cum Business Advisory
Implement Approved Vendor List (AVL)
Over and again, we read about bogus Vendors who are related to someone in the company, resulted in financial losses suffered by the company.
It’s a good practice to “qualify” all your vendors before putting them into your AVL.
Only vendors who are on your AVL can be issued with your Company Purchase Orders ( PO ).
Only those vendors’ invoices supported by your company PO will be paid by your Finance department.
Qualify all vendors based on 3 criteria :
1. Price
2. Reliability in Quality
3. Reliability in Delivery
Audit these vendors who are already on AVL annually to renew their existence in your system.
Hope above tip helps.
If you need help, feel free to contact us at :
(O) +65 63851011
(M) +65 90880669
