SUPPLIER EVALUATION POLICY

Mototolo Platinum Mine – MPLATS ENTERPRISE (PTY) LTD


1. PURPOSE

To establish a standardized process for assessing and monitoring supplier performance, ensuring that suppliers meet the company’s quality, safety, compliance, and delivery expectations to support operational excellence.


2. SCOPE

Applies to all current and prospective suppliers providing goods, services, or materials to Mototolo Platinum Mine.


3. EVALUATION CRITERIA

Supplier performance will be evaluated based on the following key factors:

Criterion Description
Quality Compliance Conformity to product specifications, certifications, and regulatory standards
Delivery Performance Timeliness, accuracy, and condition of deliveries
Pricing & Cost Control Competitive pricing and adherence to agreed terms
Health, Safety & Environment (HSE) Compliance with HAZMAT/HAZCHEM and other safety standards
Documentation & Certification Submission of valid licenses, quality certificates, and compliance documents
Responsiveness & Communication Ability to respond promptly and clearly to inquiries and issues
Sustainability Practices Environmental and social responsibility initiatives
B-BBEE Status Compliance with Broad-Based Black Economic Empowerment requirements

4. EVALUATION PROCESS

  1. Pre-Qualification

    • Review of initial supplier documentation, including licenses, tax clearance, B-BBEE certificates, and company profile.

    • Verification of compliance with legal and safety standards.

  2. Supplier Capacity Audit

    • Site visits or remote audits to assess operational capacity, infrastructure, and compliance with HSE protocols.

  3. Performance Monitoring

    • Ongoing evaluation based on delivery records, quality inspections, incident reports, and customer feedback.

    • Key Performance Indicators (KPIs) established in contracts and service level agreements.

  4. Scorecard System

    • Suppliers are scored periodically using a standardized supplier scorecard that reflects the evaluation criteria.

    • Scores influence contract renewals, order allocations, and procurement decisions.


5. PERFORMANCE REVIEW & FEEDBACK

  • Regular performance reviews will be conducted (quarterly or bi-annually).

  • Suppliers will receive feedback reports highlighting strengths, weaknesses, and areas for improvement.

  • Improvement plans may be requested for suppliers falling below acceptable thresholds.


6. NON-COMPLIANCE & CORRECTIVE ACTION

  • Suppliers not meeting standards may face probation, reduced orders, or suspension.

  • Serious or repeated non-compliance can lead to contract termination and blacklisting.

  • All corrective actions will be documented and monitored for effectiveness.


7. ROLES & RESPONSIBILITIES

Role Responsibility
Supply Chain Manager Oversees supplier evaluation and approvals
Procurement Team Conducts audits, monitors KPIs, maintains scorecards
HSE Officer Assesses supplier compliance with safety and environmental policies
Quality Assurance Team Verifies product/service quality and documentation

8. RECORDS MANAGEMENT

  • All supplier evaluation documentation, scorecards, and audit reports must be securely maintained for audit and review purposes.

  • Records shall be retained for a minimum of five years.

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