The Procurement Glossary » Know Your Supplier (KYS)

Know Your Supplier (KYS)

Suppliers & Vendors

Also known as: KYS

Definition

The practice of verifying and continually understanding who your suppliers are, their ownership and their risk profile.

Explanation

Modelled on 'know your customer', KYS combats fraud, sanctions breaches and hidden risk in the supply chain. It verifies identity and beneficial ownership at onboarding and refreshes checks over time.

Example

KYS checks reveal a supplier's ultimate owner is a sanctioned entity, halting onboarding.

Related terms

• Due Diligence — The investigation of a supplier's legitimacy, capability, financial health and compliance before engaging it.
• Supplier Risk — The exposure a buyer faces from a supplier's potential failure — financial, operational, compliance or reputational.
• Supplier Onboarding — The process of setting up a new supplier to trade — collecting details, verifying compliance and adding it to systems.
• Sanctions Screening — Checking suppliers and their owners against government sanctions and watchlists before and during engagement.

Frequently Asked Questions

What is Know Your Supplier (KYS)?

The practice of verifying and continually understanding who your suppliers are, their ownership and their risk profile. Modelled on 'know your customer', KYS combats fraud, sanctions breaches and hidden risk in the supply chain. It verifies identity and beneficial ownership at onboarding and refreshes checks over time.

Can you give an example of Know Your Supplier (KYS)?

KYS checks reveal a supplier's ultimate owner is a sanctioned entity, halting onboarding.

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