Commercial Validation & Capacity Agreement

Scope

Scope: Every supplier that passed the Technical & Social Compliance Assessment. This is Gate 4 of five in supplier onboarding.

Purpose: Gate 4 confirms that the supplier can make SpringNE products at the right price and in the volume SpringNE needs. The buying team prices real SpringNE products, and sourcing and buying agree reserved capacity. Management then gives final approval using the supplier scorecard.

Owner: Sourcing and buying teams.

Applies to: Sourcing and buying teams, with quality, technical, and compliance teams consulted on final approval and management accountable.

Process

1. Buying — Price SpringNE products. Ask the supplier to cost SpringNE styles, not only its own core products.

2. Buying — Evaluate the developments. Review the samples the supplier develops for SpringNE.

3. Buying — Confirm the commercial terms. Agree the terms with the supplier and consult the sourcing team.

4. Sourcing, Buying — Validate the production capacity. Check capacity against SpringNE forecast demand.

   • Capacity should exceed forecast demand by 30–40%.
   • Allow for seasonal changes in demand.

5. Sourcing, Buying — Sign a capacity reservation agreement. Every new supplier needs one.

   • Agree the deadlines for releasing unused capacity, so the supplier does not make a loss.

6. Sourcing — Complete the supplier scorecard. Score the supplier out of 100, using the weights below.

   • Commercial competitiveness: 20%
   • Quality capability: 25%
   • Technical capability: 20%
   • Compliance status: 15%
   • Capacity and delivery: 10%
   • Development capability: 10%

7. Management — Give final approval. Consult the sourcing, quality, technical, compliance, and buying teams. Apply the scorecard result.

   • 90–100: Approved
   • 75–89: Conditional Approval
   • Below 75: Rejected

8. Sourcing — Complete the Vendor Setup Form. Set up each approved supplier with the form listed under Forms to be used.

   • Approved suppliers then move to Supplier Performance Management.

Workflow

Buying — Price SpringNE products

Buying — Evaluate the developments

Buying — Confirm the commercial terms

Sourcing, Buying — Validate the production capacity

Sourcing, Buying — Sign a capacity reservation agreement

Forms to be used

• Vendor Setup Form

Tutorial

This training video supports the Commercial Validation & Capacity Agreement process. It does not replace the numbered steps.

Pending

Training video not linked yet

Admins will add a Microsoft Stream or SharePoint watch URL when the tutorial for Commercial Validation & Capacity Agreement is ready.

Exam

Pass mark	Expected duration	Attempts
80%	Admin will provide this soon	Admin will provide this soon

Pending

The exam is not published yet. Admins will add it here when the assessment is ready.

Changelog

Changelog

Date	Changed by	What changed
2026-09-22	Sourcing Team	Article added from Supplier Onboarding Procedure v1.0, sections 7 and 10 (Gate 4 and final approval).