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.

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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.

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Operating model · diagram

  1. 01

    AI-first software

    AI-first procurement software for long-tail spend

  2. 02

    Live marketplace

    A live B2B marketplace

  3. 03

    Human services

    Human sourcing and support

  4. 04

    Optional add-on

    Fulfilment support for merchants