What Is Approved Vendor List (AVL)?
Also known as: AVL, approved supplier list, ASL, qualified supplier list, approved manufacturer list
Definition
An approved vendor list (AVL) is a controlled record of suppliers qualified to provide specific items, services or processes. Buyers may order only from listed sources, and changes require quality approval.
Approved Vendor List (AVL) Explained
An AVL ties a supplier to what they are qualified to supply. Entries are typically at the item or commodity level, and may record the approval status, scope of approval, review date, flow-down requirements and any restrictions such as special process approvals. Approved manufacturer lists add the specific manufacturer and part number for components that must come from named makers.
Quality standards expect this control. ISO 9001 requires criteria for selecting and evaluating external providers, and AS9100 adds flow-down and special process requirements. Customers in aerospace and defense may also require that certain processes, such as heat treat or plating, use only approved sources.
ERPs enforce AVLs in several ways. SAP uses a source list (ME01) with a source list requirement so a PO is blocked for an unlisted supplier. NetSuite and Odoo typically use vendor item records, approved status fields or workflows. Infor LN and SyteLine users often use item-supplier relationships plus a custom status or approval flag, so the hard block depends on configuration.
A practical AVL has an owner, a review cycle, and a clear status such as approved, conditional or disqualified. The ERP should show the status at the moment the buyer creates the PO, not only in a separate quality file.
Why It Matters
- It stops purchases from unqualified sources before they become nonconforming material.
- It gives auditors a traceable record of why a supplier was allowed to supply a part.
- It makes flow-down of customer and regulatory requirements to the right suppliers possible.
- Enforcement in the ERP removes the reliance on the buyer remembering the rule.
In Practice
A shop orders anodized aluminum housings. The AVL lists two approved anodizers, one for Type II and one for Type III. A buyer tries to place an urgent Type III order with a cheaper Type II-only vendor. The ERP rule blocks the PO until quality adds a conditional approval or the buyer selects the listed source.
Frequently Asked Questions
What is the difference between an AVL and an AML?
An AVL lists approved suppliers or distributors. An approved manufacturer list names the manufacturers and part numbers allowed for a component, regardless of who sells it.
Can an ERP block a PO to a vendor that is not on the AVL?
Yes in many systems, through source lists, approval workflows or custom validation. The strength of the block depends on how it is configured.
How are suppliers added to an AVL?
Usually through a qualification process that can include questionnaires, audits, first article or sample approval, and certification review, followed by quality sign-off.
Related Terms
Supplier Scorecard
A supplier scorecard is a periodic rating of a vendor against agreed measures such as on-time delivery, quality acceptance, price performance and responsiveness. It turns receipt and quality data into a score used for sourcing and corrective action.
AS9100
AS9100 is the quality management system standard for the aviation, space, and defense industry, published by SAE and the International Aerospace Quality Group, which incorporates all of ISO 9001 and adds sector-specific requirements for safety, configuration, and risk.
ISO 9001
ISO 9001 is the international standard specifying requirements for a quality management system, enabling an organization to consistently provide products and services that meet customer and regulatory requirements and to improve through a process-based, risk-aware approach.
ITAR
ITAR (International Traffic in Arms Regulations) is the US State Department regulation, at 22 CFR Parts 120-130, that controls the export of defense articles, defense services, and related technical data listed on the United States Munitions List.
Traceability
Traceability is the ability to follow the history, location, and application of a part or material through the supply chain and production process, both backward to its sources and forward to every product and customer it reached.
Working with Approved Vendor List (AVL) in a live environment? Our engineers do this every day - and our AI agents automate most of it.