Strategic Purchasing Procedure : Procurement Under Supply Chain Management  :

_____________________________________________________________________

 

Purchase procedure for Procurement in Regions/ Branch Offices 

and Head Office except for Works & EFS.

 

All our business activities involve purchases of various items & services from different vendors.

In order to ensure that we buy from a qualified source at competitive prices, this procedure is laid down. Continuous evaluation of the vendors for quality, reliability & cost effectiveness is the key issue addressed in this procedure.

 

The basic issues included in this procedure are as follows:

  • Selection & approval of vendors
  • Evaluation of offers & negotiations
  • Terms & Conditions of purchase
  • Vendor appraisal.

The procedure is applicable to all divisions except for Works and Engineering and Field Services (EFS) for whom separate procedures are laid down.

 

As a part of process improvements we have amended the procedure & list of amendments is enclosed.

 

This procedure comes into force with immediate effect.

 

Encl

Table of contents

  1. PREAMBLE: 3
  2. SELECTION & APPROVAL OF VENDORS: 3

Inclusion of New Vendors in Approved Vendor List. 3

ISO approved vendors. 3

Client/ Consultant/Preferred Vendors. 3

Dealers, Stockists and Traders. 3

Vendors of Foreign Origin. 3

Other Category of Vendors. 4

Dormant Vendors. 4

  1. ENQUIRIES.. 4
  2. EVALUATION OF OFFERS.. 4
  3. NEGOTIATION.. 4

Terms & Conditions of Purchase: 5

  1. PURCHASE  ORDER.. 5

Placement of purchase order. 5

Amendments to PO.. 5

Methods of Purchase. 6

Order Acknowledgement: 6

Siemens Equipment: 6

Proprietary  & Consumable items: 6

Processing by vendors: 7

Adjustments of Payables/ Receivables: 7

Liquidated Damages: 7

Penalty: 7

Warranty: 7

Deviation: 7

Post order contractual problems: 7

  1. INSPECTION, APPROVAL AND  PASSING OF BILLS: 7
  2. RATE CONTRACTS.. 8
  3. VENDOR RATING.. 8
  4. PERFORMANCE AT SITE: 8
  5. REASSESMENT AND/OR DELETION OF VENDOR: 9
  6. BLACK LISTING: 9
  7. BUSINESS CONSULTANTS AND / OR CONTRACTORS.. 9
  8. SAFETY & ENVIRONMENTAL REQUIREMENTS.. 9
  9. DEPENDENCY RISKS FOR OUTSOURCING.. 9

   Annexures                                                                                           No of Pages

Annexure I            Vendor Information Form                                                                                  3

Annexure IA          Vendor Master Maintenance Form                                                                  3

Annexure II           Essential category of Vendors for Evaluation                                                               2

Annexure IIA         Vendor Evaluation Report For Manufacturers                                                               3

Annexure IIB         Vendor Evaluation Report For Service Providers                                         3

Annexure IIC        Vendor Evaluation Report For Civil Contractors                                           3

Annexure IID        Vendor Evaluation Report For Engineering Services Providers                                2

Annexure III          Commercial Terms And Conditions For Purchase                                      1

Annexure IIIA        Commercial Terms And Conditions For Service                                          2

Annexure IV          Quotation Evaluation Sheet                                                                              1

Annexure V           Visit Report                                                                                                           1

Annexure VI          Minutes of Meeting                                                                                             1

download

Tags: , ,