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