Vendor Onboarding Review Mechanism
Purpose: Define a structured, transparent, and accountable process for onboarding and reviewing vendors at Karma Foundation to ensure ethical standards, financial compliance and operational suitability.
1. Scope
This applies to all vendors engaged for goods, services or works including but not limited to medical supplies, construction and maintenance, food and consumables, and professional services (IT, legal, finance).
2. Objectives
- Ensure due diligence before onboarding any vendor.
- Maintain transparency and fairness in vendor selection.
- Verify compliance with legal, ethical, and financial standards.
- Establish continuous performance monitoring.
- Minimize procurement, fraud and service-quality risks.
3. Vendor Onboarding Process
- Step 1 — Vendor Identification & Initial Request: A requirement is raised by the concerned department; a Vendor Request is submitted with justification and scope.
- Step 2 — Documentation Submission: Vendors must provide company profile/individual details, PAN, GST, bank details, and client references (preferably NGOs/hospitals/corporates).
- Step 3 — Preliminary Screening: The Administration & Procurement Committee (APC) reviews legal compliance, ethical alignment, and financial stability.
- Step 4 — Evaluation & Due Diligence: Vendors are scored against the Vendor Evaluation Checklist; site visits or background checks and reference verifications are performed where applicable.
- Step 5 — Approval & Onboarding: APC submits recommendations to the Management Committee; final approval is recorded in the Vendor Register and the vendor is onboarded into the system.
4. Vendor Evaluation Checklist
| Criteria | Evaluation Points | Weightage |
|---|---|---|
| Compliance | Valid licenses, GST, PAN, certifications | 20% |
| Quality Standards | Product/service quality | 20% |
| Cost Effectiveness | Competitive pricing, transparent billing | 20% |
| Reliability | Past performance, references, delivery timelines | 20% |
| Ethical Alignment | No history of animal cruelty, fraud or malpractice | 20% |
Vendors scoring 75% or above are considered for onboarding.
5. Vendor Review & Monitoring
Vendors will be reviewed every 12 months or after contract completion. Reviews consider service quality, delivery timelines, compliance and ethical practices.
Performance Ratings:
- Excellent (90–100%) — Preferred vendor for future engagements.
- Satisfactory (70–89%) — Retain with recommendations for improvement.
- Unsatisfactory (Below 70%) — Place on probation or remove from Vendor Register.
Red flags for immediate termination: breach of contract, unethical or illegal practices, fraudulent billing, or any compromise to animal welfare or safety.
6. Roles & Responsibilities
- Administration & Procurement Committee (APC): Conduct screening, evaluation and documentation.
- Management Committee: Review APC recommendations and approve vendors.
- Finance Department: Verify tax compliance and financial documents.
- Department Heads: Provide feedback on vendor performance.
7. Record Keeping
All vendor records will be maintained in the Vendor Register (digital + physical). Records must be retained for a minimum of 5 years for audit and compliance purposes.
8. Continuous Improvement
This Vendor Onboarding Review Mechanism will be reviewed annually by the Management Committee to incorporate improvements, feedback and changes in regulations.