2. given to the nominated supplier /

2. Scope and responsibility:

This procedure applies to all Purchasing in the Company. It shall be the responsibility of the Managing Director to approve this document. It shall be the responsibility of the Engineering Manager (MR) to issue, update and maintain this document.

3. Definitions:

Customer – Recipient of a Product or Service provided by the company. Supplier – An organization that provides a product or service to the company.

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4. Procedure:

Raising a Purchase Requisition:

The purchase requisition is the internal document used to highlight a requirement for the purchase of equipment, materials, and consumable’s or sub-contract services. It is the prime document, which activates the purchasing process. All purchase is done as per work instruction.

Any employee from supervisory level up has the authority to raise a requisition but approval remains with the appropriate authorized signatories.

The person raising a requisition is responsible for ensuring that all necessary information out of those listed below shall be included:

(i) Detailed description of the item (s) required

(ii) Type, grade or class

(iii) Quantity

(iv) Inspection instructions and applicable specifications to be applied

(v) Quality System standard to be applied

(vi) Documentation / certification requirements

Document Flow:

The Purchase requisition shall be passed through misappropriates level of authority for approval and then passed to the Accountant or Procurement Engineer.

The Procurement Engineer is responsible, where possible, for ensuring that at least two quotations from suppliers / sub-contractor has been considered.

All quotations are reviewed for cost, delivery period, payment terms and product quality before the official Purchase Order number is given to the nominated supplier / sub-contractor with a copy to the Storekeeper. All- orders to suppliers / sub-contractor shall be confirmed in writing.

Authorities for approving Purchase Orders are as per stated delegation levels. Purchase Order can be in the form of fax / letter / LPO.

Where required, service contracts shall be raised with sub-contractors to ensure that all purchase requirements are understood between both parties

Verification:

Purchased Product:

Should the Company require verifying a purchased product at the supplier’s premises / sites the verification arrangements and the requirements for product acceptance will be clearly detailed in the Purchase Order.

Where required by contract a customer shall also be given the right to verify product at the Company premises or at the Company’s subcontractor’s premises.

Verification shall not absolve the supplier of the responsibility to provide acceptable product nor shall it preclude rejection by the company’s inspection authority.

Approval of Subcontractors / Suppliers:

All approved suppliers / sub-contractors shall be listed on the approved vendor list, form ICC-F-43 which shall be maintained by the Project Manager / Procurement Department.

The list shall have the following categories of suppliers:

Category A:

Those who have gained an approved International Quality Accreditation like ISO 9000 or similar acceptable Quality System.

Category B:

Those suppliers who have a past history supplying consistently acceptable goods to the Company with satisfactory standards and performance

Category C:

Provisionally approved suppliers whose abilities are to be determined by assessment and monitoring of performance by the Project Manager and the Engineering Manager (MR).

Category D:

Those suppliers who have satisfactory performances to other customer

The assessment and approval of the suppliers / subcontractors shall be based on their ability to supply acceptable goods, provide consistent good performance and the quality standards to which they operate. These shall be reviewed minimum every six months by the Project Manager, Procurement Engineer in conjunction with the Engineering Manager (MR).

Procurement Engineer shall complete Vendor Assessment Form, ICC-F-24, and present it to concerned Project Manager, who shall review the scope of supply and decide if there is a need for an assessment visit.

Each supplier / subcontractor on the Approved Suppliers list shall be issued a vendor code number of identification by the Project Manager/ Procurement Engineer.

The Procurement Engineer or his representative shall visit the premises of subcontractors to assess / analyze the capabilities of the subcontractor where appropriate and results of such visits shall be recorded on the Vendor Assessment Form.

All new suppliers shall be put under the provisionally approved suppliers list of Category C status.

The performance of all suppliers shall be monitored and reviewed by the concerned Project Manager at the end of every six months i.e. June and December.

If the performance is satisfactory based on consistent supply of acceptable goods and services over a period of six months, then such suppliers shall remain within their stated category. New suppliers in category C/D shall be promoted to Category B upon an acceptable review of their performance after six months.

Where a supplier does not continue to meet the acceptance criteria as per the evaluation they shall be removed from the Approved Suppliers list.