Preferred Supplier List (PSL)
This is often the first step a client company
may take in order to bring under control
a situation where they have too many suppliers.
Normally suppliers will go through a pre-qualification
process in order to ascertain ability to
supply, financial security, quality procedures
etc.
Suppliers who are then appointed to the
PSL will normally have pre agreed terms
set by the client thereby removing the need
for service users to engage in individual
negotiations.
The PSL is a restricted list giving suppliers
the opportunity to increase their business
levels with the client, however this also
allows the client the opportunity to 'leverage'
their suppliers and reduce their agencies
mark up.