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Standard Operating Procedure - Essar Group

Standard Operating ProcedureVendor ManagementProcess OverviewVendor Management (Routine Activities)IDENTIFICATION OF GLOBAL VENDOR/ VENDOR DEVELOPMENTPRE REGISTRATION EVALUATION OF VENDORMAINTAIN SAP VENDOR MASTERVENDOR PERFORMANCE MANAGEMENTSUB PROCESS OBJECTIVE VENDOR DEVELOPMENTTo satisfy the source needs of the procurement enlarge Global vendor base to reduce dependency risksSpecific project related vendor (Based on location of project) development to cater that project. To streamline the process of vendor identification and streamline the process of new vendor registration / ensure that business associations exists with approved vendors improve competitive ensure periodical re-verification of reduced / enhanced capability of ensure that list of reliable registered vendors is available for each product have a continuous development for the further improvement of Vendor Management CellVENDOR SELECTION CRITERIA 1.

¾ Manufacturing facility / Capacity ¾ Infrastructure ¾ Annual Turnover ¾ Financial Strength ¾ List of major customer & sub vendors ¾ Material Handling System ¾ Quality Management ... Offsite evaluation carried out by vendor management cell to judge the vendor capability

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