Yeah, there's a MUCH smarter way of doing it. You create a list of preferred vendors, a WHITELIST, and put people on it with whom product people (or whomever makes these calls) are automatically cleared to work with. If they have some really good reason they need some non-approved people, they can make the case for that with vendor management or whatever, and either add people to the list or make an exception. Vendor management itself MIGHT keep a list of 'non-preferred providers' that you probably won't get approved to work with. That's how most bigger companies do it. Nobody is actually blacklisted, and any preference for/against is limited to a very specific context.
The problem with just making lists of 'bad people' is obviously how easy it is to abuse, but also how fraught it is. If I find out I've been put on your list, I may very well have a cause for action against you! OTOH a whitelist is completely uncontroversial, its just 'supply chain management'.