Purchase Process
1.0 Purpose
1.1 To establish a procedure to ensure that purchased product conforms to required specifications.
2.0 Scope
2.1 This procedure is applicable to all the products purchased by AAG Land Survey.
3.0 Responsibility
3.1 Management Representative
3.2 Purchase Officer
4.0 Procedure
4.1 The products that are purchased are categorized into:
a. Materials / Equipment
b. Production Consumables and Equipments spares
c. Capital Purchases Purchasing process for Materials / Equipments
4.2 The need for purchasing of Materials / Equipments arises during the following situations as appropriate:
When required material / equipment is not available in house To meet the immediate requirement of the customer when it exceeds in house capacity To maintain the stock levels defined
4.3 For stock items, the minimum and maximum stock level of all Products is maintained by Purchase Officer / Co-ordinator.
4.4 The stock level is maintained based on:
a. Lead time for delivery
b. Availability of material in the market
c. Movement of Material in the field
d. Cost of the material
4.5 Based on the requirement mentioned above, the Purchase Officer / Co-ordinator prepare the Purchase Requisition and forward the same to Management Representative.
4.6 Management Representative reviews the purchase requisition and approves the same. In case of any clarifications, Management Representative reviews the same with concerned Purchase Officer / Coordinator. The approved purchase requisition is sent to Purchase Officer.
4.7 Purchase Officer identifies the supplier form the List of Approved Supplier and prepares Purchase order / Local Purchase order.
4.8 Wherever required the quotations are obtained from the supplier. A comparative statement is prepared and approval is obtained from Management Representative.
4.9 If the suppliers for the product to be purchased are not in the List of approved suppliers,
Management Representative identifies new suppliers as per the procedure for “Selection
and Evaluation of Suppliers”.
1.10 The purchase order/ LPO is prepared clearly describing the product to be purchased such as type, size, color, product price, delivery, terms and conditions etc.
1.11 The purchase order / LPO is reviewed and approved by the Management Representative. Purchase Officer sends the purchase order to the supplier.
4.12 A copy of the Purchase Order / LPO is sent to the Stores, where the purchasing materials are likely to be received.
4.13 The details Purchase Order / LPO is updated in the Purchase Order Register to monitor purchasing activity and to ensure timely receipt of the material from the supplier.
4.14 For key equipment spares and consumables such as cutting tools, drilling bits etc., Co-ordinator prepares the maximum / minimum level and re- order level of stock based on the following as appropriate:
a. Consumption pattern / operational requirements
b. Availability of material
c. Lead-time for procurement and cost.
4.15 Purchase Officer monitors the stock levels. When the material reaches the re-order level, Purchase Officer prepares the Purchase Requisition Form and forwards the same to
Management Representative.
4.16 For non-stock items, based on the operational requirement Co-ordinator prepares Purchase Requisition Form and forwards the same to Management Representative.
4.17 The Management Representative reviews the purchase requisition and approves the same. In case of any clarifications, Management Representative reviews the same with concerned Purchase Officer / Co-ordinator. The approved purchase requisition is sent to Purchase Officer.
1.18 Purchase Officer identifies the supplier form the List of Approved Supplier and prepares Purchase order / Local Purchase order.
1.19 Wherever required the quotations are obtained from the supplier. A comparative statement is prepared and approval is obtained from Management Representative.
1.20 If the suppliers for the product to be purchased are not in the List of approved suppliers, Management Representative identifies new suppliers and the selection and evaluation of the new suppliers shall be as per the Procedure for “Evaluation and Selection of Suppliers”.
1.21 The purchase order / LPO are prepared clearly describing the product to be purchased such as specifications, price, delivery, terms and conditions etc.
1.22 The purchase order / LPO is reviewed and approved by the Management Representative. Purchase Officer sends the PO/LPO to the supplier.
1.23 A copy of the PO / LPO is sent to the Stores, where the purchasing materials are likely to be received.
1.24 The PO / LPO details are updated in the Purchase Order Register to monitor purchasing activity and to ensure timely receipt of the material from the supplier. Capital Purchase
4.25 Capital purchases are budgeted before the start of the financial year based on the
requirements from respective department.
4.26 For capital purchases, respective Head of the department prepares Capital Requisition
Form and forwards to the Management Representative.
4.27 The need for capital purchases may arise in any one of the following situations, but not
limited to:
a. Upgradation in Technology
b. Expanding the scope of operation
c. To meet the specific need of customer etc.
4.28 Management Representative reviews the requisition and discusses with the management for approval.
4.29 On receipt of approval the purchasing activity shall be initiated as per the procedure
discussed above. Emergency Purchase
4.30 The emergency purchases are made to meet the immediate operational / customer
requirements. These purchases are limited to production consumables. The cash purchases are regularized through cash bills.
4.31 The details are recorded in the Purchase order register. Verification of Purchased product
4.32 All the purchased products are verified in the receiving stage for their acceptance, which is described in the procedure “Receipt, Storage and Issue of Product”.
4.33 When the Top Management / any staff of AAG Land Survey or its customer intends to
verify the product at supplier premises, Management Representative communicates the
same to the supplier and necessary arrangements for inspection / verification is made.
5 Document / Record Reference
5.1 Purchase Requisition Form
5.2 List of Approved Suppliers
5.3 Evaluation and Selection of Suppliers
5.4 Purchase Order / Local Purchase Order
5.5 Purchase Order Register
5.6 Procedure “Receipt, Storage and Issue of Product”
1.0 Purpose
1.1 To establish a procedure to ensure that purchased product conforms to required specifications.
2.0 Scope
2.1 This procedure is applicable to all the products purchased by AAG Land Survey.
3.0 Responsibility
3.1 Management Representative
3.2 Purchase Officer
4.0 Procedure
4.1 The products that are purchased are categorized into:
a. Materials / Equipment
b. Production Consumables and Equipments spares
c. Capital Purchases Purchasing process for Materials / Equipments
4.2 The need for purchasing of Materials / Equipments arises during the following situations as appropriate:
When required material / equipment is not available in house To meet the immediate requirement of the customer when it exceeds in house capacity To maintain the stock levels defined
4.3 For stock items, the minimum and maximum stock level of all Products is maintained by Purchase Officer / Co-ordinator.
4.4 The stock level is maintained based on:
a. Lead time for delivery
b. Availability of material in the market
c. Movement of Material in the field
d. Cost of the material
4.5 Based on the requirement mentioned above, the Purchase Officer / Co-ordinator prepare the Purchase Requisition and forward the same to Management Representative.
4.6 Management Representative reviews the purchase requisition and approves the same. In case of any clarifications, Management Representative reviews the same with concerned Purchase Officer / Coordinator. The approved purchase requisition is sent to Purchase Officer.
4.7 Purchase Officer identifies the supplier form the List of Approved Supplier and prepares Purchase order / Local Purchase order.
4.8 Wherever required the quotations are obtained from the supplier. A comparative statement is prepared and approval is obtained from Management Representative.
4.9 If the suppliers for the product to be purchased are not in the List of approved suppliers,
Management Representative identifies new suppliers as per the procedure for “Selection
and Evaluation of Suppliers”.
1.10 The purchase order/ LPO is prepared clearly describing the product to be purchased such as type, size, color, product price, delivery, terms and conditions etc.
1.11 The purchase order / LPO is reviewed and approved by the Management Representative. Purchase Officer sends the purchase order to the supplier.
4.12 A copy of the Purchase Order / LPO is sent to the Stores, where the purchasing materials are likely to be received.
4.13 The details Purchase Order / LPO is updated in the Purchase Order Register to monitor purchasing activity and to ensure timely receipt of the material from the supplier.
4.14 For key equipment spares and consumables such as cutting tools, drilling bits etc., Co-ordinator prepares the maximum / minimum level and re- order level of stock based on the following as appropriate:
a. Consumption pattern / operational requirements
b. Availability of material
c. Lead-time for procurement and cost.
4.15 Purchase Officer monitors the stock levels. When the material reaches the re-order level, Purchase Officer prepares the Purchase Requisition Form and forwards the same to
Management Representative.
4.16 For non-stock items, based on the operational requirement Co-ordinator prepares Purchase Requisition Form and forwards the same to Management Representative.
4.17 The Management Representative reviews the purchase requisition and approves the same. In case of any clarifications, Management Representative reviews the same with concerned Purchase Officer / Co-ordinator. The approved purchase requisition is sent to Purchase Officer.
1.18 Purchase Officer identifies the supplier form the List of Approved Supplier and prepares Purchase order / Local Purchase order.
1.19 Wherever required the quotations are obtained from the supplier. A comparative statement is prepared and approval is obtained from Management Representative.
1.20 If the suppliers for the product to be purchased are not in the List of approved suppliers, Management Representative identifies new suppliers and the selection and evaluation of the new suppliers shall be as per the Procedure for “Evaluation and Selection of Suppliers”.
1.21 The purchase order / LPO are prepared clearly describing the product to be purchased such as specifications, price, delivery, terms and conditions etc.
1.22 The purchase order / LPO is reviewed and approved by the Management Representative. Purchase Officer sends the PO/LPO to the supplier.
1.23 A copy of the PO / LPO is sent to the Stores, where the purchasing materials are likely to be received.
1.24 The PO / LPO details are updated in the Purchase Order Register to monitor purchasing activity and to ensure timely receipt of the material from the supplier. Capital Purchase
4.25 Capital purchases are budgeted before the start of the financial year based on the
requirements from respective department.
4.26 For capital purchases, respective Head of the department prepares Capital Requisition
Form and forwards to the Management Representative.
4.27 The need for capital purchases may arise in any one of the following situations, but not
limited to:
a. Upgradation in Technology
b. Expanding the scope of operation
c. To meet the specific need of customer etc.
4.28 Management Representative reviews the requisition and discusses with the management for approval.
4.29 On receipt of approval the purchasing activity shall be initiated as per the procedure
discussed above. Emergency Purchase
4.30 The emergency purchases are made to meet the immediate operational / customer
requirements. These purchases are limited to production consumables. The cash purchases are regularized through cash bills.
4.31 The details are recorded in the Purchase order register. Verification of Purchased product
4.32 All the purchased products are verified in the receiving stage for their acceptance, which is described in the procedure “Receipt, Storage and Issue of Product”.
4.33 When the Top Management / any staff of AAG Land Survey or its customer intends to
verify the product at supplier premises, Management Representative communicates the
same to the supplier and necessary arrangements for inspection / verification is made.
5 Document / Record Reference
5.1 Purchase Requisition Form
5.2 List of Approved Suppliers
5.3 Evaluation and Selection of Suppliers
5.4 Purchase Order / Local Purchase Order
5.5 Purchase Order Register
5.6 Procedure “Receipt, Storage and Issue of Product”
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