There are three procedures relating to purchasing:
• Evaluation of Suppliers
• Purchase Orders
• Purchasing on the Internet
• Verification of Purchased Product
Details of suppliers and sub-contractors who directly affect the Company’s finished product or service and who are not in a monopoly position shall be recorded on the Approved Supplier List. This form shall be retained in the Purchase Order File.
Before using any supplier due consideration shall be given to their scope and suitability, known past performance and any personal recommendation. Copies of any documents (such as CVs, references or previous work) shall be kept with in the Purchase Order file or in the specific Suppliers file as proof of capability.
Performance of suppliers is noted in the “comments” column on the Approved Supplier List. The initial status of Suppliers and Sub-contractors shall be regarded as “ACCEPTABLE”. If consistently good service is received, status may be raised and annotated on the List to “PREFERRED”. If problems are consistently encountered with the quality or service delivered the status shall become “PROHIBITED” and shall be annotated and dated as such on the List. “PROHIBITED” status may be revoked and returned to “ACCEPTABLE” after a period of at least six months provided that sufficient evidence is available that the problems previously encountered have been resolved.
Purchase Orders must not be placed with suppliers or sub-contractors designated as “PROHIBITED” on the Approved Supplier List. Consideration should be given to the use of “PREFERRED” suppliers rather than those designated as “ACCEPTABLE”. The Finance & Contracts Manager will advise which suppliers are preferred for specific purchases.
Before any purchase is made a thorough check of suppliers must be made to ensure that the best price and quality is achieved for the item being purchased. Authorisation for the purchase must then be obtained from the Finance & Contracts Manager.
Written Purchase Orders for suppliers of products, materials and services shall be raised to detail the requirements. However, items which can be described as being of reliable quality (e.g. books) and can be purchased from any High Street shop are deemed to be ‘Standard’ products.
No Purchase Order need be raised if the cost of such standard products is less than £50.
All Purchase Orders shall be checked and signed by the originator before authorisation and despatch. This authorisation shall be recorded by formal signature, or verbal authorisation of the Finance & Contracts Manager. Any amendments to a Purchase Order shall be made on a new Purchase Order and the original number recorded.
A thorough check of suppliers must be made to ensure that the best price and quality is achieved for the item being purchased before any purchase is made. Authorisation for the purchase must then be obtained from the Finance & Contracts Manager, who will also authorise the method of payment to be used (i.e. account, invoice or credit card).
When a purchase is made on the internet, a copy of the purchase order shall be sent to the Finance & Contracts Manager for payment and subsequent retention in the Company accounts file.
When specified in the Customer’s contract, the Customer shall be allowed the right to verify, either at the suppliers’ premises or on receipt of the material, that it conforms to the specified requirements. Such verification shall not be used as evidence of effective control of quality by the Sub-contractor, nor shall it be used to absolve the Company of responsibility to provide acceptable product or preclude subsequent rejection by the Customer.
Purchase Orders placed on Sub-contractors shall include a contract, based upon a Statement of Work. This Statement of Work shall be of similar content and format to that for the Company’s quotations/tenders as defined in the Contract Review quality procedure.
Purchased product shall be verified to ensure compliance with the associated Purchase Order.