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Procurement of supply chains standard

BSI, the London W4-based business standards company, has launched PAS 7000. British Standards describes it as a universally applicable supply chain information standard for suppliers and buyers at organizations of all sizes around the globe. Its writers say that PAS 7000 Supply Chain Risk Management- Supplier prequalification helps answer three key questions relating to any organization’s supply chain partners: Who are they? Where are they? Can they be relied upon? The standard draws on the collective expertise of 240 professionals drawn from global industry associations and organizations, and it addresses product, process and behavioural criteria for supplier prequalification.

PAS 7000 has been created in response to industry demand, with three quarters of executives considering supply chain risk management important or very important (according to Don’t play it safe when it comes to Supply Chain Risk Management – Accenture Global Operations Megatrends Study 2015). As supply chains increasingly span continents, and brands become ever more exposed due to the demand for increased transparency, the challenges for procurement teams to assess the suitability of suppliers increases. Some 63pc of EMEA companies have experienced disruption to their value chain due to unpredictable events beyond their control in the last 12 months, at an average cost of £449,525 per incident per company (according to Dynamic Markets – Managing the Value Chain in Turbulent Times – Oracle, March 2013).

PAS 7000 provides companies with a uniform set of common information requirements that reduces duplication of effort in completing tender forms and aids procurement in bringing consistency to the supplier base. It establishes a model of governance, risk and compliance information for buyers to pre-qualify suppliers and confirm their intention and ability, to adhere to key compliance requirements. This in turn helps organizations make an informed decision about whether or not to engage with a potential supply chain partner.

Howard Kerr, Chief Executive at BSI said: “Today’s consumers and employees demand integrity from the organizations they deal with. Acting with integrity requires confidence in all those involved in delivering a service, anything else risks brand reputation. The benefit of this new standard is that it helps brands to align their supply chain with their corporate values by adopting an internationally defined framework of good practice for supplier pre-qualification. This new information model approach involves a concept shift, away from that of ‘providing questions that are to be asked by buyers in order to solicit answers from suppliers’ to one where there is ‘a generally accepted information model that is provided by suppliers and that is acquired and used by buyers, as required’. It is a fundamental change that will hopefully increase transparency and trust in the supply chain, as well as saving time and effort for both suppliers and buyers in the future.”

To download the standard free of charge visit:

The organizations involved in the development of PAS 7000 include: Achilles Group Limited., Altius Vendor Assessment Limited, Astra Zeneca, Brother Industries Ltd., Builder’s Profile (UK) Ltd., Capita plc, Celgene Corporation, Chartered Institute of Purchasing and Supply (CIPS), Dainippon Screen MFG. Co. Ltd., Defence Science and Technology Laboratory (Dstl), East Riding of Yorkshire Council, Japan Audit and Certification Organization for Environment and Quality, Japan Quality Assurance Organization, London Underground Limited, Metcash Limited, Onward Kashiyama co. Ltd., Osaka Izumi Co-operative Society, PICS Auditing, Sanitarium Health & Wellbeing, Sompo Japan Nipponkoa Risk Management Inc., Supply Chain council – Hong Kong, Toyota Tsusho Corporation and Vendigital Group.



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