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Vendor Management

Vendor Management Logic

Vendor registration, prequalification, approved vendor list management, performance rating, and document compliance tracking.

PostgreSQL
7 Tables
Schema: vendor
Performance Rating

Overview

Vendor Management handles the full vendor lifecycle — from initial registration through prequalification assessment, AVL (Approved Vendor List) inclusion, ongoing performance evaluation, and document compliance tracking. Vendors are categorized by trade, rated on delivery, quality, HSE, and responsiveness. Low-performing vendors are flagged for review or blacklisting.


Register

Prequalify

AVL Approval

Performance

Review/Renew
7
Vendor Tables
4
Rating Criteria
Annual
PQ Renewal
Auto
Score Calc

Status States

StatusDescriptionAllowed ActionsNext States
RegisteredVendor submitted registration formReview Docs, Assign PQPending PQ
Pending PQPrequalification assessment in progressScore, Approve, RejectApproved, Rejected
ApprovedVendor on Approved Vendor ListIssue PO/RFQ, RateSuspended, Blacklisted
SuspendedTemporarily removed from AVLReinstate, BlacklistApproved, Blacklisted
BlacklistedPermanently disqualifiedView Only
RejectedPQ assessment failedReapply after 6 monthsRegistered

Database Schema

vendor.vendor_master

  • vendor_id — PK, unique vendor identifier
  • tenant_id — FK → organization.tenant
  • vendor_code, vendor_name — Unique code and registered name
  • trade_category, gst_number, pan_number — Classification and tax IDs
  • bank_account, ifsc_code — Payment details
  • status, rating_score — AVL status and aggregate score

vendor.vendor_prequalification

  • pq_id — PK
  • vendor_id — FK → vendor.vendor_master
  • financial_score, technical_score, hse_score — Category scores (0-100)
  • overall_score, pq_grade — Weighted total and A/B/C grade
  • valid_from, valid_to — PQ validity period
  • assessed_by — FK → admin.user

vendor.vendor_performance

  • perf_id — PK
  • vendor_id, po_id — FK references
  • delivery_score, quality_score, safety_score, response_score — Per-order rating (1-5)
  • comments, rated_by — Feedback and assessor

vendor.vendor_document

  • doc_id — PK
  • vendor_id — FK → vendor.vendor_master
  • doc_type — registration | gst | pan | insurance | license
  • file_url, expiry_date, is_verified — Document tracking with expiry alerts

Vendor Lifecycle Steps

1

Vendor Registration

Vendor submits registration form with company details, trade category, financial statements, tax certificates, and bank details. System creates vendor master record in Registered status.

2

Document Verification

Procurement team verifies GST certificate, PAN, insurance policies, and trade licenses. Expired or invalid documents block progression to PQ stage.

3

Prequalification Assessment

Evaluate vendor on financial stability (turnover, net worth), technical capability (similar projects, equipment), HSE record, and workforce strength. Weight-based scoring produces overall grade (A/B/C/D).

4

AVL Inclusion

Vendors with grade A/B are included in Approved Vendor List for their trade categories. Grade C vendors may be conditionally approved with enhanced monitoring. Grade D rejected.

5

Ongoing Performance Rating

After each PO completion, rate vendor on delivery timeliness, material quality, safety compliance, and responsiveness. Running average updates vendor master rating_score.

Vendor Queries

Vendor Performance Dashboard

-- Aggregate vendor performance across all POs
SELECT vm.vendor_code, vm.vendor_name, vm.trade_category,
       COUNT(vp.perf_id) AS total_orders,
       ROUND(AVG(vp.delivery_score), 1) AS avg_delivery,
       ROUND(AVG(vp.quality_score), 1) AS avg_quality,
       ROUND(AVG(vp.safety_score), 1) AS avg_safety,
       ROUND(AVG(vp.response_score), 1) AS avg_response
FROM vendor.vendor_master vm
LEFT JOIN vendor.vendor_performance vp ON vp.vendor_id = vm.vendor_id
WHERE vm.status = 'Approved'
GROUP BY vm.vendor_id
ORDER BY avg_quality DESC;

Validation Rules

Business Rules

  • GST Validation: GST number format validated against GSTIN pattern (15-char alphanumeric)
  • PQ Expiry: PQ validity auto-expires after 12 months; vendor drops to Pending PQ
  • Duplicate Check: System prevents duplicate vendor registration by PAN/GST match
  • Blacklist Enforcement: Blacklisted vendors cannot be selected in RFQ/PO vendor lists

Integration Points

Connected Modules

  • Procurement: Vendor master referenced in RFQ, PO, and Rate Contract
  • Receiving: GRN quality inspection feeds vendor quality score
  • Finance: Vendor bank details used for payment processing
  • HSE: Vendor safety incidents impact safety_score

Best Practices

Recommended

  • Conduct annual PQ renewal for all active vendors
  • Set minimum rating threshold (3.0/5.0) for continued AVL inclusion
  • Track document expiry and send 30-day advance renewal reminders
  • Maintain trade-wise vendor count to ensure competition