What is Vendor Change Request?

Q: What is Vendor Change Request?

A Vendor Change Request is a formal process used to review, approve, and document updates to vendor information, contracts, or banking details.

Definition

Vendor Change Request is a formal process used to request, review, approve, and document modifications to an existing vendor’s master data, contractual terms, banking details, or service scope. It ensures that all supplier-related updates are properly authorized, validated, and recorded to maintain financial accuracy and internal control compliance.

Types of Vendor Changes

Banking Detail Updates: Subject to strict Vendor Bank Change Control procedures to prevent fraud.
Legal or Tax Information Changes: Updates to registered names, tax IDs, or compliance documentation.
Service Scope Adjustments: Modifications to deliverables or pricing terms.
Status Changes: Activation, deactivation, or risk reclassification based on performance or compliance reviews.

Governance and Internal Controls

Vendor Change Requests operate within structured Vendor Change Management policies and align with Vendor Governance (Shared Services View) to ensure centralized oversight. Strong Segregation of Duties (Vendor Management) prevents unauthorized individuals from both initiating and approving the same change.

Each Change Request must be supported by documentation and audit trails, which strengthens Vendor External Audit Readiness. In regulated industries, updates may also fall under Regulatory Change Management (Accounting) to ensure financial reporting compliance.

System Integration and Automation

Modern organizations manage Vendor Change Requests through workflow tools embedded in ERP Integration (Vendor Management) platforms. Automated approval routing under Change Management (Automation View) improves efficiency while maintaining control checkpoints.

Within Shared Services Vendor Management, centralized teams review supporting documentation such as updated contracts, banking confirmations, or results from a Vendor Financial Health Assessment when risk-related changes are involved. If performance issues trigger a change in vendor status, a Vendor Performance Improvement Plan may accompany the request.

Summary

A Vendor Change Request is a controlled process for updating supplier information or contractual terms. By integrating governance frameworks, segregation of duties, system automation, and audit documentation, organizations protect financial integrity, reduce fraud risk, and ensure compliant vendor management practices.