Why Excel checklists are not suitable for supplier qualification

An Excel spreadsheet with 50 columns filled with certificates, contact details, and comments: This is the reality of supplier qualification in many purchasing departments. At first glance, it seems pragmatic: Quick to create, easy to share, and usable without major IT investment. But this solution is deceptive. Those who rely on Excel in the long term, not only run the risk of operational errors, but can also create strategic blind spots – leading to audit problems and delivery failures.

In this article, we show why Excel checklists are not a sustainable medium for supplier qualification, what risks may arise from it and how digital processes create real added value – for purchasing managers and strategic buyers alike.

Excel: Practical in everyday life, risky in supplier management

Excel is flexible and can be used quickly, but it is precisely this flexibility that makes it prone to errors.  According to a KPMG study, over 90% of all Excel models contain errors, and in the case of financial models, this figure rises to 95%. The problem is that spreadsheets do not have any integrated control mechanisms, meaning that even models used for decision-making are used without systematic quality assurance.

An analysis by the Institute of Chartered Accountants (ICAEW) also shows that 90% of all tables with more than 150 formulas contain material errors. These range from simple typos and incorrect formats to omission errors where entire data or checks are simply forgotten - and it is these errors that often go undetected.

Three common pitfalls

The weaknesses of Excel checklists are evident in purchasing in various ways – sometimes in strategic management, sometimes in daily routine operations. Three pitfalls occur particularly frequently:

📑 Scattered certificates and documentation
Certificates are stored in various Excel files, and updates are easily overlooked. Expired certificates are often only discovered during audits, resulting in a high level of documentation effort and compliance risks.

💸 Financial risks remain invisible
Excel has no automatic warning signals. Critical credit rating developments are therefore often recognized too late – with direct consequences for projects, budgets, and delivery capabilities.

🤝 Stakeholders not synchronized
Purchasing, quality, and compliance each work with their own tables and have different perspectives. The lack of a shared data set leads to conflicting assessments and unnecessary delays.

The process of supplier qualification: More than just a checklist

The pitfalls show that Excel can record individual pieces of information, but does not provide a common thread. What is missing is the procedural aspect – a clear process with uniform criteria, responsibilities, and automated workflows. Only this structure can turn supplier qualification into more than just a loose checklist.

Standardized criteria such as certificates, ESG and LkSG proof, credit rating data, and references are central to this process. If this information is collected consistently and checked automatically, there will be comparability – exactly what is lacking in Excel spreadsheets. Which criteria are relevant in detail, depends on the industry, regulations, and risk profile.

A digital process typically follows five steps:

1️⃣ Registration & master data
Suppliers enter their basic information including certificates. Mandatory fields and format specifications ensure that nothing is missing.

2️⃣ Checking & validation
Purchasing, quality and compliance check together. Automated checks ensure that certificates are up-to-date and correct.

3️⃣ Evaluation & decision
Standardized criteria enable comparability. Decisions are based on data, not gut feeling.

4️⃣ Approval & integration
Only approved suppliers are transferred to the ERP (e.g. SAP S/4HANA) – without manual duplication.

5️⃣ Tracking & recertification
Deadlines, such as certificate expiry dates do not come to nothing: Workflows automatically remind users and trigger recertifications.

Unlike Excel, supplier qualification is not a static document, but an end-to-end workflow - efficient, transparent and audit-proof.

Supplier qualification with FUTURA:

Whether RFI for market research or qualification of new partners – digital supplier questionnaires, can be used in all phases of supplier selection.

Supplier management from FUTURA

Conclusion: The benefits of digital supplier qualification

Excel checklists may be a quick start, but they are not sufficient for sustainable supplier qualification. A professional process requires clear structures and digital support to ensure transparency, efficiency, and compliance.

This includes:

• Standardized questions on relevant criteria such as certificates, ESG and LkSG certificates or key financial figures.
• Standardized processes, that all suppliers must undergo – objective and transparent.
• A central database that provides consistent information at any time.
• Automated workflows that handle validations, reminders and evaluations.
• Shared data access for purchasing, quality and compliance.
• Audit-proof traceability so decisions can be verified at any time.

The advantages of digital solutions are clear. Although they require investment and change management, the ROI usually becomes apparent after just a few months – through saved audit costs, faster approvals and reduced risks.

FUTURA makes this added value immediately tangible: Processes for supplier qualification can be mapped in a standardized yet flexible manner, certificates can be documented in an audit-proof manner, and all stakeholders can be seamlessly integrated. The result is a digital workflow that finally replaces Excel – and strategically strengthens purchasing.