Caventis
Supplier cost documents, a calculator and material samples, illustrating cost reduction

Procurement policy template

A plain-English policy setting out who can buy what, how many quotes are needed and who signs off.

A procurement policy sets the rules for how your business spends money with suppliers. Without one, buying decisions depend on whoever happens to be placing the order, contracts renew without review and nobody can say who approved what.

This template is written for growing businesses that need clear rules without bureaucracy. It covers approval limits, quotation thresholds, contract sign-off, conflicts of interest and supplier standards, with spaces for you to enter the limits that suit your business.

Free to download. Available as Word and PDF.

What's included

  • Purpose, scope and who the policy applies to
  • Approval limits table by role
  • Quotation and tender thresholds
  • Contract review and signature rules
  • Conflict of interest and gifts guidance
  • Supplier onboarding, ethical and Modern Slavery standards
  • Exceptions process and policy review cycle

How to use this template

  1. Read the whole template and delete sections that do not apply to your business.
  2. Enter approval limits that match your current sign-off practice, then tighten where needed.
  3. Set quotation thresholds that balance control against the time it takes to buy.
  4. Ask finance and the board to review and approve the policy.
  5. Share it with everyone who buys, and add it to your onboarding for new managers.
  6. Review it once a year, or after a sale, acquisition or major change in spend.

Frequently asked questions

Once more than a handful of people can commit money to suppliers, a short written policy saves time and prevents disputes. It does not need to be long: two or three pages of clear rules is often enough.

Base limits on your current spend and organisation, so routine purchases are not held up while larger commitments get proper review. The template leaves the figures blank because the right levels vary widely between businesses.

It is good practice to set supplier standards on labour and ethics. Businesses above the turnover threshold in the Modern Slavery Act 2015 must also publish an annual statement, and customers increasingly ask smaller suppliers about it.

Need help putting this into practice?

Every engagement is managed by our founder, starting with objectives agreed with you. Book an introductory call to see how our procurement transformation work could help.

Procurement transformationBook an introductory call

Related templates

Last updated 22 October 2026