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Purchasing

Vendor Classifications

Vendor ClassificationsSupplier Classifications

The supplier classification system described below allows Seminole State to effectively leverage what it spends, improve the quality of products and services, reduce infrastructure costs, manage risk, and meet internal and external customer requirements. 

To ensure that the College maximizes the value of every dollar of funding, the Purchasing Department encourages faculty and staff to use preferred contract suppliers to purchase commodities whenever a Collegewide discount pricing agreement has been implemented.

Strategic Suppliers

Strategic suppliers are preferred contract suppliers whose performance and business value are based on an objective scorecard that rates supplier cost, delivery, responsiveness, technology and quality, resulting in greater visibility and access within Seminole State College. Strategic suppliers are long-term, cooperative business partners that are committed to leveraging the strategic and operational capabilities of both organizations to achieve significant ongoing benefits for each party.

Preferred Suppliers

Preferred suppliers are approved suppliers who have been awarded a Collegewide discount pricing agreement by Purchasing to supply products and services required by the College. Preferred suppliers are identified as the "least total cost source" for College purchase requirements in a particular commodity category as well as the preferred contract supplier for those products or services.

Approved Suppliers

Approved suppliers are allowed to provide basic products and/or services to the College. Suppliers must be approved by Purchasing and entered into Seminole State's Oracle Financials System before purchase orders can be issued to them. Pricing is generally "street pricing" or preferred pricing based on a single purchase transaction.

Classification Comparison

Use the chart below to learn more about each classification level and to see how it affects suppliers and the College across a number of categories.

CategoryPartyApproved Preferred Strategic
Value and Compensation Supplier Provides exactly what is stated in the contract or purchase order Offers process improvements and suggestions
Offers process improvements and suggestions as well as significant value derived from industry expertise, industry contacts and marketplace influence
Generally engages in single transactions or short-term contracts with the College
Provides value-added expertise and resources to further business initiatives Provides value-added expertise and resources to further business initiatives
Commits to receiving electronic purchase orders Commits to receiving electronic purchase orders and online ordering Commits to receiving electronic purchase orders, online ordering and invoicing
Seminole State Makes payments according to agreed upon terms and conditions Makes payments according to contract terms and conditions and is willing to negotiate early payment options Makes payments according to contract terms and conditions, is willing to negotiate early payment options, and offers bonus incentives or competitive intelligence for contract performance when extra value is provided
Generally engages in single transactions or short-term contracts with supplier Generally engages in 1-3 year contracts
Generally engages in 3-5 year contracts (sometimes longer)
Pricing and Business Volumes Supplier Offers competitive pricing
Offers preferred pricing with term commitments Commits to offering "most favored customer" pricing
Receives Preferred Supplier designation with specific contract terms Receives Strategic Supplier designation with greater ordering volume
Is not guaranteed exclusivity Offers multi-year options with price guarantees Shares pricing model with College to establish a fair pricing/profit margin
Gives pricing and invoicing audit rights to College
Gives pricing and invoicing audit rights to College
Seminole State Limits business to each transaction Provides opportunities for increased market share Partners with supplier to achieve maximum market share
Uses purchase orders and the competitive solicitation process to award business Awards business to preferred suppliers after competitive solicitation process Awards primary- or single-source contracts after competitive solicitation process
Does not require competitive bidding after contract is in place Does not require competitive bidding after contract is in place
Requires competition for transactions larger than $1,000 Sponsors on-campus supplier shows
Provides problem resolution support Exhausts all problem escalation processes
Brand Name Usage Supplier Prohibited from using College logo/brand Must submit written request and receive permission to use College logo/brand Must submit written request and receive permission to use College logo/brand
Seminole State Prohibited from using supplier logo/brand Evaluates logo/brand usage on case-by-case basis and only grants permission if value can be derived for Seminole State Seeks opportunities with supplier to link logos/brands to provide mutual benefits
Supplier Recognition Supplier Does not request any formal recognition from College
Has opportunity to participate in College's supplier recognition programs Has opportunity to participate in College's supplier recognition programs
Seminole State Does not give any formal recognition to supplier Formally acknowledges supplier Formally acknowledges and promotes Strategic Supplier status and benefits to College community
Encourages supplier to demonstrate value and best practices Allows distribution of pre-approved supplier press releases to targeted groups of employees
Provides reference for supplier on a case-by-case basis Acknowledges value-added business partnership
Customization and Product Influence Supplier Offers little or no customization; product or service is "off the shelf" Considers College's unique business needs in product/service research and development
Mutually commits to investing in new ideas, products/services and focus groups with College
Seminole State Accepts products and services "as is" or "off the shelf" with no customization Helps enhance supplier's product offerings by providing expertise and feedback Mutually commits to investing in new ideas, products/services and focus groups with supplier
May agree to serve as beta site for supplier May agree to serve as beta site for supplier
Risk Sharing Supplier Accepts minimal risk based on contract and purchase order terms Accepts modest risk, permitting incentives in  contract Accepts greater risk, permitting more incentives in contract
Provides financial support
Seminole State Accepts no risk based on contract and purchase order terms Accepts no risk based on contract and purchase order terms Accepts minimal risk based on contract terms and conditions
Publishes success stories and case studies along with supplier
Publishes success stories and case studies along with supplier
Information Sharing Supplier N/A Shares information and provides education as defined in contract Proactively shares product strategy and direction and asks for College's feedback
Frequently provides industry products, services and consultation
Seminole State Shares information as defined in contract and educates supplier on contractual obligations Shares significant tactical information as well as some strategic information to aid supplier-led initiatives Permits supplier discussion of and participation in creation of strategic plans and business initiatives
Helps supplier understand procurement process and requirements Helps supplier understand College's objectives to meet obligations and provide value-added services Shares strategy and initiatives that enable supplier to meet obligations and provide value-added services
Business Interaction Supplier Conducts business via phone, fax, e-mail, Internet and face-to-face interaction Conducts business via phone, fax, e-mail, Internet  and face-to-face interaction Assigns dedicated sales and customer support staff to work with College
Works collaboratively with College when appropriate Accommodates College's methods of conducting business Demonstrates mutual trust with College at all levels of business relationship
Enjoys ongoing senior-level/executive interactions with College
Seminole State Conducts business via phone, e-mail and face-to-face interaction Interacts regularly with supplier via face-to-face communication Interacts substantially with supplier via face-to-face communication
Works collaboratively with supplier when appropriate Works collaboratively with supplier when appropriate Works collaboratively with supplier when appropriate
Enjoys ongoing senior-level/executive interactions with supplier
Account Management
Supplier Manages account by assigning a local account representative to College
Manages account by assigning a designated account team leader to College
Manages account by designating a sales and support team to work with College
Seminole State
Varies Varies Varies
Problem Escalation and Resolution Supplier Meets contractual obligations through customer service agents
Monitors College's use of goods and services Proactively monitors process
Resolves problems within provisions of contract Anticipates problems and promptly notifies College of resolution options Communicates and resolves problems without waiting for customer approval
Seminole State Accesses customer service agents in accordance with contract or purchase order Views problem resolution as a shared responsibility Views problem resolution as a shared responsibility
Resolves problems through provisions of contract Resolves problems through provisions of contract Reviews problems and resolutions quarterly
Provides progressive escalation of concerns
Commitment to Periodic Review Supplier Agrees to performance measurements and reviews as defined in contract or purchase order Participates in quarterly reviews to address relationship Facilitates continuous dialog about and awareness of performance outside of quarterly reviews
Provides feedback on College's performance in relationship and acts to address gaps in its own performance Measures performance jointly and develops action plans to address gaps
Seminole State Measures supplier performance as defined in contract or purchase order Conducts quarterly performance reviews Facilitates continuous dialog about and awareness of performance outside of quarterly reviews
Self-assesses performance and solicits feedback from suppliers when appropriate Receives formal performance feedback from supplier and acts to address gaps in its own performance Measures performance jointly and develops action plans to address gaps
Polices and Conduct Supplier Adheres to College's procurement policies and practices as well as its Code of Conduct Adheres to College's procurement policies and practices as well as its Code of Conduct Adheres to College's procurement policies and practices as well as its Code of Conduct
Seminole State Adheres to Purchasing Code of Ethics
Adheres to Purchasing Code of Ethics Adheres to Purchasing Code of Ethics
Security and Confidentiality Supplier Maintains confidentiality as contractually defined Maintains confidentiality as contractually defined Maintains confidentiality as contractually defined
Seminole State Monitors and enforces supplier confidentiality Monitors and enforces supplier confidentiality Monitors and enforces supplier confidentiality
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