A Preferred Supplier List (PSL) is exactly what it sounds like: a list of suppliers a company has already checked, approved, and decided they’re happy to work with. But why go to the effort of setting one up?

Simpler Purchasing

Instead of starting from scratch every time they need something, companies can go straight to a set list of suppliers they know are a good fit. It speeds things up and removes a lot of back-and-forth.

Reduced Risk

Every business has standards to meet — whether that’s insurance, safety, data protection, or financial stability. A PSL makes sure suppliers are vetted before any work starts, which reduces the risk of problems later on.

Better Value

Agreeing terms with suppliers up front often means more consistent pricing and fewer surprises. It also cuts down on the admin and costs involved in running a full procurement process every time.

Stronger Working Relationships

Using the same suppliers regularly helps build familiarity. The supplier understands the client’s way of working, and the client knows what to expect. That usually leads to smoother projects and less time wasted.

Staying Competitive

For many organisations, being able to rely on trusted suppliers means they can deliver their own services more effectively. In turn, that helps them stay competitive in their market.

What It Means for Suppliers

For suppliers, a PSL doesn’t guarantee work, but it does mean you’re in the right place when opportunities come up. Instead of competing with everyone, you’re only compared against the suppliers already on the list.

That’s why companies create PSLs: to make buying easier, safer, and more efficient.