Buying from non-registered vendors results in significant extra costs to the university as a result of administrative processes. A minor saving for the department can be a significant extra cost to the university. The use of non-registered vendors poses special risks and costs to the university.

Vendor types include:

• Preferred Trade Vendors – accredited suppliers with whom UCT has negotiated best price, quality and service
• Trade Vendors – loaded in SAP, but where formal agreements have not been negotiated by Procurement and Payment Services (PPS)
• Temporary Vendors – intended for genuine once-off transactions, their use is monitored and blocked after 3 purchase orders

If you intend to use a vendor regularly, make sure to apply for Trade Vendor status.

To create a vendor on SAP

Where there is no preferred vendor and/or an already registered vendor for the items you need to procure, and you plan to regularly use a vendor, you can request that the vendor be created on SAP.

Vendors are judged according to the following criteria:

• financial stability
• tax compliance status
• VAT status
• BEE status
• payment terms and method
• conditions of sale
• resources and operational capacity
• trade references