INFORMATIVE
Vendor Contract (Normal)
Standard Operating Procedure (SOP) for Normal Vendor Contract
Introduction: This SOP outlines the steps and guidelines for initiating, negotiating, and finalizing vendor contracts at RRasal Connect Service Private Ltd. The objective is to ensure a standardized and transparent process for engaging with vendors to procure goods and services necessary for the company's operations.
Vendor Selection
- Identify the need for a new vendor contract based on operational requirements or project needs.
- Conduct a preliminary assessment of the vendor's suitability based on their products, services, reputation, and alignment with company values.
Vendor Evaluation
- Gather information about the vendor's track record, financial stability, references, and past performance.
- Evaluate the vendor's capacity to deliver quality products/services within the required timeframe.
- Verify the vendor's compliance with legal and regulatory requirements.
Request for Proposal (RFP) Preparation
- Create a detailed Request for Proposal (RFP) document outlining the scope of work, specifications, terms, and conditions.
- Include evaluation criteria such as price, quality, delivery timeline, and vendor capabilities.
Issuing the RFP
- Share the RFP document with potential vendors via email or through an online portal.
- Set a clear deadline for vendors to submit their proposals.
Proposal Evaluation
- Form a cross-functional evaluation committee to review received proposals.
- Evaluate proposals based on the predefined criteria and assign scores/rankings.
Negotiation
- Select the top proposals based on evaluation results.
- Initiate negotiations with the selected vendors regarding contract terms, pricing, delivery schedules, and other relevant details.
Contract Drafting
- Create a comprehensive contract document based on the finalized terms and conditions.
- Include sections related to scope of work, payment terms, delivery schedules, quality standards, dispute resolution, and termination clauses.
Legal Review
- Forward the draft contract to the legal team for a thorough review to ensure compliance with applicable laws and regulations.
Approval Process
- Obtain necessary internal approvals as per the company's hierarchy and delegation of authority.
Vendor Notification
- Notify the selected vendor about the acceptance of their proposal and share the final contract draft.
Contract Execution
- Upon receiving the vendor's acceptance of the contract terms, sign the contract.
- Ensure all required parties sign the contract, and keep a record of the signed documents.
Vendor Onboarding
- Share onboarding instructions, including invoicing procedures, points of contact, and any relevant guidelines.
Contract Management
- Maintain an organized repository of all vendor contracts and associated documents.
- Monitor vendor performance against agreed-upon terms and KPIs.
- Regularly review vendor relationships and contract terms to ensure they remain aligned with company objectives.
Renewal or Termination
- Initiate the contract renewal process well in advance of the contract's expiration date if applicable.
- If needed, follow proper procedures for contract termination based on predetermined conditions.
Record Keeping
- Maintain accurate records of all communications, negotiations, and contract-related documents throughout the process.
Continuous Improvement
- Periodically review and refine the SOP based on feedback and lessons learned to enhance the efficiency and effectiveness of the vendor contract process.
By following this SOP, RRasal Connect Service Private Ltd aims to ensure a consistent and transparent process for engaging with vendors, thus fostering successful partnerships and optimizing procurement outcomes.