Supplier Non-Disclosure Agreement (NDA) Policy Example – Procurement Policies

Supplier Non-Disclosure Agreement (NDA) Policy Sample

In this article, we’ll look at the key elements that make up an example Supplier Non-Disclosure Agreement (NDA) Policy. We’ve included some starter/boilerplate information to help you get started writing this policy for your company. If you’re looking for help in setting up your policies & procedures or employee manual/handbook, our team can assist.

Supplier Non-Disclosure Agreement (NDA) Policy Template

The following are the main elements that should be included in your Supplier Non-Disclosure Agreement (NDA) Policy:

1. Title Page

• Policy Title: Supplier Non-Disclosure Agreement (NDA) Policy
• Company Name: The name of the organization implementing the policy.
• Policy Number (if applicable): For easy reference within the company’s policy structure.
• Version Control: Date of creation, last review, and version number.
• Effective Date: The date the policy becomes operational.
• Approval Authority: Name and title of the individual who approved the policy.

2. Purpose/Objective

• A brief statement explaining why the Supplier Non-Disclosure Agreement (NDA) Policy exists. This section outlines the policy’s purpose in relation to the company’s goals, regulatory requirements, or ethical standards.
• Describe what problem or issue the policy addresses.
• Example Purpose/Objective:

The Supplier Non-Disclosure Agreement (NDA) Policy aims to safeguard confidential information exchanged with vendors during procurement. By mandating that vendors sign NDAs, the policy ensures that sensitive data remains protected, preventing unauthorized disclosure and maintaining the integrity of the procurement process. This measure helps build trust between the organization and its suppliers, fostering a secure environment for collaboration and innovation. The policy is a crucial component of procurement strategies, emphasizing the importance of confidentiality in business relationships

3. Scope

• A description of who the Supplier Non-Disclosure Agreement (NDA) Policy applies to (e.g., employees, contractors, vendors).
• Specify any exceptions to the policy.
• Explain departments or roles affected, if necessary.
• Example Scope:

This policy mandates that vendors sign Non-Disclosure Agreements (NDAs) to safeguard confidential information exchanged during procurement activities. It applies to all suppliers involved in the procurement process, ensuring that sensitive data remains protected. The policy is part of the broader Procurement Policies category and is designed to maintain the integrity and confidentiality of proprietary information. By requiring NDAs, the policy aims to prevent unauthorized disclosure and misuse of information, fostering a secure and trustworthy relationship between the company and its suppliers

4. Definitions

• Clarify any key terms or jargon used within the Supplier Non-Disclosure Agreement (NDA) Policy to ensure understanding.
• Avoid assumptions about familiarity with industry-specific terminology.
• Example Definitions:

The Supplier Non-Disclosure Agreement (NDA) Policy mandates that vendors sign NDAs to safeguard confidential information exchanged during procurement. This policy falls under Procurement Policies and aims to ensure that sensitive data remains protected throughout the vendor engagement process. By requiring NDAs, the policy helps maintain the integrity and confidentiality of proprietary information, fostering a secure and trustworthy procurement environment

5. Policy Statement

• A detailed outline of the Supplier Non-Disclosure Agreement (NDA) Policy itself, including all rules, expectations, and standards.
• It should be direct and clear so that it leaves no ambiguity about the company’s position or requirements.

6. Procedures

• Step-by-step instructions on how to implement or comply with the Supplier Non-Disclosure Agreement (NDA) Policy.
• Include any forms, tools, or systems that employees must use.
• Describe the responsibilities of different roles in ensuring adherence to the policy.
• Example Procedures:

Vendors must sign NDAs to safeguard confidential information exchanged during procurement. The process begins with identifying the need for an NDA based on the sensitivity of the information. Once identified, the procurement team provides the NDA template to the vendor. The vendor reviews, signs, and returns the document. The procurement team ensures the NDA is fully executed before any confidential information is shared. Compliance is monitored, and any breaches are addressed promptly. This procedure ensures that all parties understand their obligations to maintain confidentiality throughout the procurement process

7. Roles and Responsibilities

• List the roles responsible for enforcing or overseeing the Supplier Non-Disclosure Agreement (NDA) Policy (e.g., managers, HR).
• Define who is accountable for reporting, monitoring, and updating the policy as needed.
• Example Roles and Responsibilities:

The Supplier Non-Disclosure Agreement (NDA) Policy mandates that vendors sign NDAs to safeguard confidential information exchanged during procurement. Procurement teams are responsible for ensuring that all vendors understand and comply with the NDA requirements. Vendors must adhere to the terms, maintaining the confidentiality of any sensitive information received. Legal and compliance departments oversee the enforcement and address any breaches. Regular audits and reviews are conducted to ensure adherence to the policy, and any violations are subject to disciplinary actions. This policy is crucial for protecting proprietary information and maintaining trust in vendor relationships

8. Compliance and Disciplinary Measures

• Outline how compliance will be monitored or enforced.
• Describe any consequences or disciplinary actions for failing to follow the policy, including the escalation process.

9. References and Related Documents

• Include links or references to any laws, regulations, or company guidelines that support the Supplier Non-Disclosure Agreement (NDA) Policy.
• Reference related company policies that connect or overlap with the document.

10. Review and Revision History

• State the review cycle (e.g., annually, biannually) and who is responsible for reviewing the Supplier Non-Disclosure Agreement (NDA) Policy.
• A history section that lists all revisions made to the document, including dates and reasons for changes.

11. Approval Signatures

• Signature lines for key decision-makers who have authorized the policy (CEO, department head, HR manager).

12. Appendices or Attachments (if needed)

• Additional information, FAQs, or case examples to provide more context or clarify how the Supplier Non-Disclosure Agreement (NDA) Policy applies in specific situations.
• Any relevant forms or templates employees need to complete.