Supplier Management

Module Code: SUPP Priority: P1 (Master Data - Supplier/Vendor Directory) Status: Enhanced from v5.1 (expanded from M08 supplier section) Dependencies: P0 modules, Company Configuration Old Module Number: M19 (Supplier Performance - referenced but not fully developed)

---

Related Documentation

• 🏠 Documentation Home - System overview & all modules

---

Module Overview

Purpose: Comprehensive supplier and vendor management system tracking all supplier relationships, performance metrics, pricing, delivery terms, and procurement operations for parts, vehicles, and services.

Priority: P1 (Master Data - Core Business Entity)

Dependencies:

• User Access & Security (user access control)
• Access Control & Permissions (supplier data access)
• Employee Directory (supplier relationship management)
• Company Configuration (multi-location supplier relationships)

Integration Points: Vehicle Stock Management, Parts Inventory, M27 Business Intelligence

---

Functional Specifications

8.1 Supplier Directory Management

Supplier Information:

Basic Information:

Field	Type	Description	Required
Supplier Code	VARCHAR(20)	Unique identifier (auto)	Yes
Supplier Name	VARCHAR(200)	Legal business name	Yes
Trade Name	VARCHAR(200)	DBA name	Optional
Supplier Type	ENUM	OEM/Distributor/Aftermarket/Service	Yes
Business Registration	VARCHAR(50)	Government registration number	Yes
Tax ID	VARCHAR(50)	Tax identification number	Yes
Industry	VARCHAR(100)	Industry classification	Yes
Website	VARCHAR(255)	Company website	Optional
Established Date	DATE	Company founding date	Optional

Contact Information:

Field	Type	Description
Primary Contact Name	VARCHAR(200)	Main contact person
Primary Contact Title	VARCHAR(100)	Job title
Primary Phone	VARCHAR(20)	Main phone number
Primary Email	VARCHAR(255)	Main email address
Secondary Contact	VARCHAR(200)	Backup contact
Secondary Phone	VARCHAR(20)	Backup phone
Secondary Email	VARCHAR(255)	Backup email

Address Information:

Field	Description
Main Address	Corporate/billing address
Warehouse Address	Fulfillment/shipping address
City	City
State/Province	State
Postal Code	ZIP code
Country	Country

Financial Information:

Field	Type	Description
Payment Terms	ENUM	Net30/Net60/COD/etc.
Credit Limit	DECIMAL	Maximum credit allowed
Current Balance	DECIMAL	Outstanding payables
Currency	VARCHAR(10)	Primary currency
Bank Name	VARCHAR(200)	Supplier’s bank
Bank Account	VARCHAR(100)	Account number (encrypted)
Tax Rate	DECIMAL	VAT/Tax rate

Procurement Terms:

Field	Type	Description
Delivery Terms	VARCHAR(50)	FOB, CIF, DDP, etc.
Lead Time Days	INT	Standard lead time
Minimum Order Value	DECIMAL	Minimum order amount
Minimum Order Quantity	INT	Min order qty per line
Preferred Communication	ENUM	Email/Phone/Portal/Fax
Order Method	ENUM	Email/EDI/Portal/Phone
Delivery Schedule	VARCHAR(100)	Standard delivery days
Returns Policy	TEXT	Return conditions

8.2 Supplier Classification

Supplier Types:

Type	Description	Characteristics
OEM (Original Equipment)	Manufacturer original parts	Highest quality, authorized
Authorized Distributor	Official OEM distributor	OEM authorized, reliable
Aftermarket Supplier	Non-OEM parts manufacturer	Cost-effective alternatives
Local Supplier	Domestic vendors	Fast delivery, local support
International Supplier	Overseas vendors	Volume pricing, longer lead times
Service Provider	Services not products	Labor, outsourced services

Supplier Status:

Status	Description	Can Order
Active	Current supplier in good standing	Yes
Preferred	Top-tier preferred supplier	Yes
Alternate	Backup supplier	Yes
Probation	Performance issues, under review	Limited
Suspended	Temporarily blocked from orders	No
Inactive	No longer used	No

Supplier Categories:

Category	Products/Services
Parts Supplier	Automotive parts and accessories
Vehicle Supplier	New vehicle OEM
Equipment Supplier	Shop equipment and tools
Consumables Supplier	Shop supplies, consumables
Service Provider	Outsourced services
IT/Software Vendor	Technology services

8.3 Supplier Performance Tracking

Performance Metrics:

Quality Metrics:

Metric	Description	Target
Defect Rate	% of defective parts received	< 2%
Return Rate	% of parts returned to supplier	< 1%
Quality Score	Overall quality rating (1-5)	> 4.0
Compliance Rate	% orders meeting specifications	> 98%
First Pass Yield	% parts accepted on first inspection	> 95%

Delivery Metrics:

Metric	Description	Target
On-Time Delivery	% orders delivered on time	> 95%
Delivery Score	Overall delivery rating (1-5)	> 4.0
Lead Time Accuracy	Actual vs promised lead time	± 2 days
Complete Order Rate	% orders delivered complete	> 95%
Backorder Rate	% items backordered	< 5%

Pricing Metrics:

Metric	Description	Target
Price Competitiveness	Comparison to market	Within 5% of market
Price Stability	Price change frequency	< 2 changes/year
Invoice Accuracy	% invoices matching PO	> 99%
Discount Compliance	Honors agreed discounts	100%

Service Metrics:

Metric	Description	Target
Responsiveness	Query response time	< 24 hours
Communication Score	Communication quality (1-5)	> 4.0
Documentation Quality	Completeness of paperwork	> 95%
Problem Resolution	Issue resolution time	< 72 hours

Overall Supplier Score:

Weighted calculation:

• Quality: 40%
• Delivery: 30%
• Pricing: 20%
• Service: 10%

Target: > 85% overall score

8.4 Supplier Qualification & Onboarding

Qualification Process:

Step	Activity	Responsible
1	Initial inquiry/application	Supplier
2	Preliminary assessment	Procurement
3	Request documentation	Procurement
4	Review credentials	Procurement/Legal
5	Financial check	Finance
6	Site visit (if applicable)	Quality/Procurement
7	Sample evaluation	Quality
8	Trial order	Procurement
9	Performance review	Procurement
10	Approval decision	Management

Required Documentation:

Document	Purpose
Business License	Legal authorization
Tax Registration	Tax compliance
Financial Statements	Financial stability
Insurance Certificate	Liability coverage
Quality Certifications	ISO, industry certs
References	Customer references
Product Catalog	Product range
Price List	Pricing structure
Terms & Conditions	Business terms
Bank Details	Payment processing

Onboarding Checklist:

• Create supplier record in system
• Verify all documentation
• Set up payment terms
• Configure ordering method
• Assign account manager
• Set up supplier portal access (if applicable)
• Communicate procurement policies
• Schedule initial meeting
• Place trial order
• Review trial order performance

8.5 Supplier Relationship Management

Account Management:

Field	Description
Account Manager	Employee responsible for relationship
Relationship Status	New/Developing/Established/Strategic
Last Contact Date	Most recent communication
Next Review Date	Scheduled performance review
Contract Status	Active/Expiring/Expired
Contract Expiry	Contract end date
Auto-Renew	Automatic renewal flag

Communication Tracking:

Activity	Description
Meetings	Face-to-face/virtual meetings
Calls	Phone communications
Emails	Email correspondence
Visits	Site visits (theirs/ours)
Issues	Problems and resolutions
Negotiations	Price/terms negotiations

Supplier Segmentation:

Segment	Criteria	Management Approach
Strategic	High volume, critical parts	Close partnership, quarterly reviews
Preferred	Good performance, regular business	Standard management, semi-annual reviews
Transactional	Low volume, commodity items	Minimal management, annual reviews
Probationary	Performance issues	Intensive management, monthly reviews

8.6 Contract & Agreement Management

Contract Types:

Type	Description	Duration
Master Supply Agreement	General terms and conditions	1-3 years
Volume Commitment	Guaranteed purchase volume	Annual
Pricing Agreement	Fixed pricing for period	6-12 months
Consignment Agreement	Inventory consignment	Ongoing
Exclusive Agreement	Single-source arrangement	2-5 years

Contract Terms:

Term	Description
Contract Number	Unique identifier
Effective Date	Start date
Expiry Date	End date
Auto-Renewal	Automatic renewal clause
Notice Period	Termination notice requirement
Price Terms	Pricing structure
Volume Commitments	Purchase obligations
Payment Terms	Payment conditions
Delivery Terms	Shipping terms
Warranty Terms	Product warranties
Penalties	Non-compliance penalties
Termination Clause	Conditions for termination

Contract Monitoring:

• Alert 90 days before contract expiry
• Track volume commitments vs actual purchases
• Monitor compliance with terms
• Flag pricing changes outside agreement
• Track penalty/bonus provisions

8.7 Supplier Catalog & Pricing

Product Catalog Management:

Field	Description
Supplier SKU	Supplier’s part number
Internal Part Number	Our part number (cross-reference)
Product Description	Part description
Category	Product category
Unit Price	Current price
Currency	Price currency
UOM	Unit of measurement
MOQ	Minimum order quantity
Lead Time	Standard lead time
Last Updated	Price update date

Price History:

• Track all price changes with dates
• Reason for price change
• Effective date of new pricing
• Previous pricing for comparison
• Price trend analysis

Volume Discounts:

Quantity Tier	Discount %	Example
1-10 units	0%	List price
11-50 units	5%	5% off list
51-100 units	10%	10% off list
100+ units	15%	15% off list

8.8 Supplier Risk Management

Risk Assessment:

Risk Factor	Assessment
Financial Stability	Credit rating, financial health
Supply Continuity	Single-source risk, backup suppliers
Geographic Risk	Political, natural disaster risks
Quality Risk	History of defects
Compliance Risk	Regulatory compliance
Dependency Risk	% of our business they represent

Risk Mitigation:

Strategy	Description
Dual Sourcing	Multiple suppliers for critical parts
Safety Stock	Buffer inventory for critical items
Contract Terms	Protective clauses in agreements
Performance Bonds	Financial guarantees
Regular Audits	Periodic supplier audits
Contingency Plans	Backup supplier activation plans

Supplier Audits:

Audit Type	Frequency	Focus Areas
Financial	Annual	Financial health, credit risk
Quality	Bi-annual	Quality systems, processes
Compliance	Annual	Regulatory compliance
Site	As needed	Facilities, capabilities
Security	Annual	Data security, confidentiality

8.9 Supplier Reporting & Analytics

Supplier Reports:

Report	Description
Supplier Performance Scorecard	Overall performance metrics
Spend Analysis	Purchase volume by supplier
On-Time Delivery Report	Delivery performance trends
Quality Report	Defect and return rates
Price Comparison	Competitive pricing analysis
Supplier Concentration	Dependency analysis
New Supplier List	Recently onboarded suppliers
Supplier Aging	Outstanding payables by supplier

Analytics:

• Top suppliers by spend
• Supplier diversity metrics
• Cost savings from negotiations
• Supplier consolidation opportunities
• Price trend analysis
• Lead time trends
• Quality trends over time

---

Data Model

Supplier Table:

Field	Type	Description
supplier_id	UUID	Primary key
supplier_code	VARCHAR(20)	Unique supplier code
supplier_name	VARCHAR(200)	Legal business name
trade_name	VARCHAR(200)	DBA name
supplier_type	ENUM	OEM/Distributor/Aftermarket/Service
supplier_status	ENUM	Active/Preferred/Alternate/Suspended/Inactive
business_registration	VARCHAR(50)	Registration number
tax_id	VARCHAR(50)	Tax ID
industry	VARCHAR(100)	Industry classification
website	VARCHAR(255)	Company website
established_date	DATE	Founding date
primary_contact_name	VARCHAR(200)	Main contact
primary_contact_title	VARCHAR(100)	Contact title
primary_phone	VARCHAR(20)	Phone
primary_email	VARCHAR(255)	Email
address	TEXT	Main address
city	VARCHAR(100)	City
state	VARCHAR(100)	State
postal_code	VARCHAR(20)	ZIP code
country	VARCHAR(100)	Country
payment_terms	ENUM	Payment terms
credit_limit	DECIMAL	Credit limit
current_balance	DECIMAL	Outstanding balance
currency	VARCHAR(10)	Currency
delivery_terms	VARCHAR(50)	Incoterms
lead_time_days	INT	Standard lead time
minimum_order_value	DECIMAL	Min order amount
account_manager_id	UUID	Account manager employee
overall_score	DECIMAL	Performance score (0-100)
created_at	TIMESTAMP	Record creation
updated_at	TIMESTAMP	Last update

Supplier Contact Table:

Field	Type	Description
contact_id	UUID	Primary key
supplier_id	UUID	Foreign key to supplier
contact_name	VARCHAR(200)	Contact name
contact_title	VARCHAR(100)	Job title
department	VARCHAR(100)	Department
phone	VARCHAR(20)	Phone number
mobile	VARCHAR(20)	Mobile number
email	VARCHAR(255)	Email address
is_primary	BOOLEAN	Primary contact flag
is_active	BOOLEAN	Active status

Supplier Performance Table:

Field	Type	Description
performance_id	UUID	Primary key
supplier_id	UUID	Foreign key to supplier
period_start	DATE	Evaluation period start
period_end	DATE	Evaluation period end
quality_score	DECIMAL	Quality rating (0-5)
delivery_score	DECIMAL	Delivery rating (0-5)
pricing_score	DECIMAL	Pricing rating (0-5)
service_score	DECIMAL	Service rating (0-5)
overall_score	DECIMAL	Weighted overall (0-100)
defect_rate	DECIMAL	% defective
return_rate	DECIMAL	% returned
on_time_delivery_rate	DECIMAL	% on time
invoice_accuracy_rate	DECIMAL	% accurate
total_orders	INT	Orders in period
total_spend	DECIMAL	Total purchase amount
evaluated_by	UUID	Evaluator employee
evaluated_at	TIMESTAMP	Evaluation date
notes	TEXT	Performance notes

Supplier Contract Table:

Field	Type	Description
contract_id	UUID	Primary key
supplier_id	UUID	Foreign key to supplier
contract_number	VARCHAR(50)	Contract number
contract_type	VARCHAR(100)	Agreement type
effective_date	DATE	Start date
expiry_date	DATE	End date
auto_renew	BOOLEAN	Auto-renewal flag
notice_period_days	INT	Termination notice
volume_commitment	DECIMAL	Purchase commitment
contract_value	DECIMAL	Total contract value
payment_terms	VARCHAR(100)	Payment terms
contract_status	ENUM	Draft/Active/Expired
contract_document_url	VARCHAR(500)	Contract file
created_by	UUID	Creator employee
approved_by	UUID	Approver employee
created_at	TIMESTAMP	Creation time

Supplier Price List Table:

Field	Type	Description
price_id	UUID	Primary key
supplier_id	UUID	Foreign key to supplier
part_id	UUID	Foreign key to part (if applicable)
supplier_sku	VARCHAR(100)	Supplier part number
description	VARCHAR(200)	Part description
unit_price	DECIMAL	Current price
currency	VARCHAR(10)	Price currency
uom	VARCHAR(20)	Unit of measurement
moq	INT	Minimum order quantity
lead_time_days	INT	Lead time
effective_date	DATE	Price effective date
expiry_date	DATE	Price expiry
is_active	BOOLEAN	Active price flag
created_at	TIMESTAMP	Record creation

Supplier Communication Log Table:

Field	Type	Description
log_id	UUID	Primary key
supplier_id	UUID	Foreign key to supplier
communication_type	ENUM	Meeting/Call/Email/Visit
contact_date	DATE	Communication date
contact_person	VARCHAR(200)	Who we spoke with
our_representative	UUID	Our employee
subject	VARCHAR(200)	Topic
notes	TEXT	Discussion notes
follow_up_required	BOOLEAN	Follow-up needed
follow_up_date	DATE	Follow-up due date
created_at	TIMESTAMP	Record creation

---

Business Rules

Supplier Management Rules:

• Supplier code must be unique
• Tax ID must be verified for active suppliers
• Minimum one contact required per supplier
• Credit limit enforced for purchase orders
• Payment terms defined before first order
• Performance evaluation required quarterly for active suppliers

Performance Rules:

• Score calculated automatically from metrics
• Suppliers scoring < 70% flagged for review
• Suppliers scoring < 50% moved to probation
• Three consecutive poor scores trigger suspension review
• Strategic suppliers reviewed monthly

Contract Rules:

• Active contract required for orders > $10,000
• Alert sent 90 days before contract expiry
• Expired contracts prevent new orders (manager override available)
• Volume commitments tracked monthly
• Auto-renewal requires 90-day advance notice if canceling

Ordering Rules:

• Cannot order from suspended suppliers
• Credit limit checked before PO approval
• Lead time auto-populates from supplier record
• MOQ enforced on purchase orders
• Payment terms auto-apply from supplier record

---

Integration Points

Outbound Integrations:

Module	Integration Purpose
Vehicle Stock Management	Vehicle supplier management
Parts Inventory	Parts supplier management, PO creation
M27 Business Intelligence	Supplier analytics and reporting
Finance/Accounting	Payables, payment processing

Inbound Integrations:

Module	Integration Purpose
Parts Inventory	Order and delivery data, performance metrics
Vehicle Stock Management	Vehicle order data
Employee Directory	Account manager assignments

---

User Roles & Permissions

Supplier Management Access Matrix:

Role	View	Create	Edit	Delete	Performance Review	Contract Approval
System Admin	All	Yes	All	Yes	Yes	Yes
Procurement Manager	All	Yes	All	No	Yes	Yes
Buyer/Purchaser	All	Yes	Limited	No	Submit	No
Parts Manager	All	No	Limited	No	Submit	No
Finance Manager	All	No	Financial only	No	No	Contract terms
General Manager	All	Yes	All	Limited	Approve	Approve

---

Key Performance Indicators

Supplier Management Metrics:

Metric	Target	Measurement
Active Suppliers	Track	Number of active suppliers
Supplier Diversity	> 70%	% spend not concentrated in top 3
Average Supplier Score	> 85%	Average performance score
On-Time Payment	> 95%	% invoices paid on time
Contract Coverage	> 80%	% spend covered by contracts

Procurement Performance:

Metric	Target	Measurement
Cost Savings	Track annually	Negotiated savings vs previous year
Lead Time Reduction	Track	Average lead time improvement
Supplier Consolidation	Optimize	Reduction in supplier count
New Supplier Onboarding	< 30 days	Time to onboard new supplier
Supplier Disputes	< 1%	% orders with disputes

Quality Metrics:

Metric	Target	Measurement
Average Defect Rate	< 2%	Weighted average across suppliers
Average Return Rate	< 1%	Weighted average across suppliers
Suppliers Meeting Quality Target	> 90%	% suppliers scoring > 4.0 quality

---

Last Updated: November 14, 2025 Version: 6.0 Migrated From: Dealership_System_Documentation_v5_1.md (M08 supplier section, enhanced) Changes: Created comprehensive supplier management module from supplier directory section, added performance tracking, contract management, and risk assessment