SayPro Supplier Management Assess supplier performance based on delivery timeliness, product quality, and cost-effectiveness from SayPro Monthly April SCMR-17 SayPro Monthly Inventory Management: Stock tracking, order fulfilment, and supplier management by SayPro Online Marketplace Office under SayPro Marketing Royalty SCMR
Purpose
This section outlines the SayPro standard procedure for evaluating supplier performance. Consistent supplier assessment ensures that all vendors meet SayPro’s expectations for delivery reliability, product quality, and cost-effectiveness, which are critical for maintaining operational efficiency and customer satisfaction.
Objectives
- Establish clear, measurable performance criteria for all suppliers
- Identify high-performing suppliers for long-term strategic partnerships
- Detect underperforming suppliers and take corrective action
- Optimize procurement decisions based on value, not just price
- Align supplier operations with SayPro’s service and quality standards
Key Performance Dimensions
| Dimension | Description |
|---|---|
| Delivery Timeliness | Supplier’s ability to deliver complete orders on or before the agreed schedule |
| Product Quality | Compliance with specifications, minimal defects, and packaging standards |
| Cost-Effectiveness | Competitive pricing, favorable payment terms, and overall value delivered |
Performance Indicators & Scoring System
SayPro uses a standardized Supplier Performance Scorecard on a 100-point scale across three categories:
1. Delivery Timeliness (40 Points)
| Sub-Metric | Weight | Target |
|---|---|---|
| On-time delivery rate | 20 | ≥ 95% |
| Lead time adherence | 10 | Consistent with PO |
| Responsiveness to delays | 10 | Delay mitigation within 24–48 hrs |
2. Product Quality (35 Points)
| Sub-Metric | Weight | Target |
|---|---|---|
| Defect rate | 15 | ≤ 2% |
| Conformance to specs | 10 | 100% |
| Packaging and labeling standards | 10 | 100% compliant with SayPro logistics SOP |
3. Cost-Effectiveness (25 Points)
| Sub-Metric | Weight | Target |
|---|---|---|
| Unit cost competitiveness | 10 | At or below category benchmark |
| Flexibility in MOQs and terms | 5 | Demonstrated cooperation |
| Payment terms and value-added services | 10 | 30–60 days; bundling or bulk discounts |
Supplier Grading Scale
| Score Range | Rating | Action |
|---|---|---|
| 90–100 | Excellent | Preferred vendor; priority for future POs |
| 75–89 | Good | Maintain relationship; suggest minor improvements |
| 60–74 | Average | Issue performance warning; monitor next 2 months |
| <60 | Poor | Review contract; consider replacement or blacklisting |
Supplier Review Process
📊 Monthly Evaluation
- Automated data pulled from SayPro OMS, QC logs, and invoice records
- Reports generated using SayPro Supplier Scorecard Dashboard
- Suppliers flagged below 75 score are reviewed manually
👥 Quarterly Review Meetings
- Top 10 suppliers by spend and volume undergo quarterly performance review
- Metrics discussed with supplier representatives
- Action plans are created for improvement or innovation
📁 Annual Supplier Audit
- Physical or virtual audits for suppliers with >R250,000 annual trade
- Includes factory inspections, quality control process verification, and ESG compliance
Performance Review Example
📦 Supplier Y – Q2 Review
| Category | Result |
|---|---|
| Delivery Timeliness | 94% on-time; one late batch of 3 days |
| Product Quality | 1.8% defect rate; strong packaging compliance |
| Cost-Effectiveness | Priced 5% lower than next competitor; 45-day payment terms |
| Overall Score: 92 (Excellent) – Recommended for strategic partnership expansion |
Improvement and Escalation
If a supplier’s score falls below 75:
- Initial Notification: Shared with supplier including score breakdown
- Corrective Action Plan (CAP): Required within 5 business days
- Reassessment: Post-CAP review within 30 days
- Delisting Consideration: If no improvement after 60 days, supplier may be removed from SayPro’s approved vendor list
Benefits of Supplier Performance Management
- Promotes accountability and professionalism among vendors
- Ensures only quality, timely, and competitively priced products enter SayPro’s supply chain
- Reduces operational costs due to fewer returns, delays, or escalations
- Enhances SayPro’s customer satisfaction through consistent service delivery
- Enables data-driven procurement and contract negotiation
Support Tools
- SayPro Supplier Scorecard Dashboard – Monthly score visualization and trend tracking
- Supplier Relationship Management (SRM) System – Logs meetings, audits, and CAPs
- Integrated QA/QC System – Links inspection data with supplier profiles
- Procurement Analytics Module – Compares cost, performance, and risk across all suppliers
Conclusion
Regular assessment of supplier performance is critical to maintaining a high-functioning supply chain. By scoring suppliers based on timeliness, quality, and cost-effectiveness, SayPro ensures that every product delivered meets the brand’s high standards and every supplier relationship drives value. This structured approach not only reduces risk but also fosters trust, transparency, and long-term collaboration.