Supplier selection & evaluation procedure

 1.0 Purpose

To provide guidance to all members of the Organization, regarding Supplier selection process. This is a part of merchandising and marketing process.

2.0 Scope: 

This process applies to all the merchandising/ marketing team and supply chain Department of the Organization.

3.0 Responsibility:

Merchandisers are responsible for selecting suppliers. Merchandising in consulting with General Manager will carry out periodic evaluation of suppliers.

4.0 Process:

Organization need to ensure that suppliers are selected on the basis of their (suppliers) capability to meet the company’s requirements and therefore evaluated and controlled properly.

4.1 Suppliers will be selected based on their (suppliers) ability to meet the Requirement of Renaissance Group in terms of quality, delivery performance, basic ethical standards, payment method and price. 

4.2 Whenever, the company will need to include a new supplier, Manager Merchandising /Asst. Manager Merchandising /Merchandiser shall ask the supplier to send a sample as per requirement.

4.3 Quality of raw materials will be verified by Manager merchandising /Asst. Manager Merchandising/Merchandiser.

4.4 Manager merchandising /Asst. Manager Merchandising /Merchandiser will verify all other features (Other than Quality) assessing overall product functionality and appearance. 

4.5 If verification results found satisfactory, Supplier will be nominated by the Merchandising Department and Recommendation–Supplier Evaluation Record send to General Manager for final approval.

4.6 General Manager/Merchandising Manager will verify all the features and will give his recommendation based on the Supplier Evaluation Record.

4.7 Existing suppliers shall be grandfathered as per supplier evaluation. Only Qualified suppliers shall be included in the approved supplier list or ERP System by IT personnel.

5.0 Supplier Evaluation Key Points:

Supplier shall be evaluated at least once in a year preferably in January for the previous twelve months. I.e. January to December of the previous year. Supplier shall be evaluated on basis of 6 different parameter. 

5.1 Quality

5.2 Price

5.3 On time Delivery (OTD)

5.4 Packing Condition

5.5 Communication

5.6 Logistics

6.0 Supplier Scoring:

Supplier will be evaluated based on 100 points.

Score Grade Action

Above 95% A Excellent

90% to 94% B Need To Improved

Below 90% C Rejected

7.0 Documentation:

7.1 Supplier’s evaluation shall be documented in “Supplier Evaluation Record”

7.2 Records of supplier evaluation and Approved supplier list shall be maintain/preserved by the Manager Merchandising.

8.0 Reference:

9.0 Definition: