Lapasar
Compliance & Governance

Due Diligence

Also known as: Supplier due diligence

Due diligence is the process of investigating a supplier's legitimacy, capability and risk before entering into a business relationship.

WhatsApp us rfqme@lapasar.com

Supplier due diligence checks that a vendor is a real, registered business that is financially sound, compliant, and free of red flags such as sanctions, litigation or ownership concerns. Its depth scales with risk — a strategic, high-spend supplier warrants more scrutiny than a low-value one.

Due diligence is part of onboarding and should be refreshed periodically, since a supplier's situation can change. Marketplaces reduce the burden by vetting suppliers centrally, so buyers inherit that assurance rather than repeating checks for every relationship.

Frequently asked questions

What is supplier due diligence?
Due diligence is investigating a supplier's legitimacy, financial health, compliance and risk before doing business — confirming they are a real, sound and compliant company.
How much due diligence is enough?
It should scale with risk: high-spend or strategic suppliers warrant deeper checks, while low-value suppliers need lighter verification. It should also be refreshed periodically.

Explore related across the knowledge graph

GuideApproval workflowThe routing and sign-off rules that control what gets bought, by whom, and up to what value.GuideProcurement complianceMaking sure buying actually follows policy, contracts and process — and closing the maverick-spend gap that quietly erodes value.GuideProcurement governanceThe policies, roles, controls and oversight that make procurement compliant, ethical and value-focused — enforced by default in a digital operation.SolutionGLC & Government Procurement in MalaysiaDigital procurement for Malaysian GLCs — catalogue, approval governance, Bumiputera vendor reporting and audit-ready compliance, backed by owned fulfilment.ToolApproval Workflow Cost CalculatorEstimate the time and cost lost to manual purchase approvals.TemplateBudget Request FormAn editable Excel and PDF form to itemise, justify and route a budget request for approval.TemplateProcurement Approval Matrix TemplateAn editable Excel matrix that maps spend thresholds to approver roles and sourcing rules.TemplateProcurement Policy TemplateAn editable Word procurement policy covering approval limits, sourcing rules, PO controls and ethics.ResearchSupplier Risk Report 2026The supplier risks Malaysian enterprises carry in 2026 — continuity, concentration, compliance, financial and delivery — and how consolidation and visibility reduce them.IndustryAirlines & AviationNon-aeronautical MRO, ground-support, cabin and facilities supply with strict governance for airlines and aviation services.IndustryEducation & UniversitiesTeaching, lab, ICT, hostel and facilities supply, fund governance and approval workflows for universities, colleges and schools.IndustryFinancial ServicesBranch, office, facilities and IT-peripheral supply with multi-branch governance for banks, insurers and financial firms.GlossaryApproval WorkflowAn approval workflow is the defined sequence of authorisations a purchase must pass through before it can proceed, based on rules such as value or category.GlossaryAudit TrailAn audit trail is a complete, time-stamped record of every action in a process, showing who did what and when, so transactions can be traced and verified.GlossaryBumiputera VendorA Bumiputera vendor is a supplier owned by Bumiputera individuals, a category tracked in Malaysian procurement to support economic participation goals.
Back to the procurement glossary

Put procurement theory into practice

Talk to our team about wholesale pricing, credit terms, sourcing support and delivery across Peninsular Malaysia — or explore the marketplace built for Malaysian enterprises.

Request a demoExplore enterprise procurement

Prefer to talk to a real person?

Our team replies fast on WhatsApp and email — no forms, no waiting.

WhatsApp us rfqme@lapasar.com