Before managing an existing supplier, what status must it be in?

To effectively manage an existing supplier in the Workday system, it is essential for the supplier to have an "Approved" status. This status indicates that the supplier has completed all necessary evaluations and has met the required compliance and regulatory standards set by the organization. Only approved suppliers gain access to the procurement processes, allowing for proper transactions and engagements.

Managing a supplier that is simply in a pending, active, or inactive status does not provide the necessary assurances that the supplier is fully vetted and authorized to conduct business with the organization. Pending status typically signifies that the supplier is still undergoing the approval process, while active could imply that the supplier is operational, but without the explicit approval, this may not guarantee compliance with internal policies. Inactive status, on the other hand, generally indicates that the supplier can no longer be engaged until certain conditions are met. Therefore, only an approved supplier status empowers an organization to engage in effective supplier management while minimizing risks associated with unvetted suppliers.