The supplier performance has a significant effect on the competitiveness in implementation of Just-In-Time delivery and entire supply chain. This paper examines the supplier selection process and procurement methods of the company Rajhans Desai – Jain group. In this paper, the supplier performance was described; the supplier must be introduced and developed before being an approved supplier. Considering, the importance of supplier performance as a part of vendor selection, it will not be successful if no good cooperation from supplier in terms of quality and business point of view. This paper proposed the strategies in managing vendor called Vendor Management System (VMS), which shown for development of the supplier performance to reach ready state before entering the Just-In-Time. The Vendor Management System (VMS) identifies five phases starting from qualification, measuring, analysing, implementing and maintaining the supplier performance. The suppliers who reach the ready state level as company goal and expectation will be selected to enter the company’s family.