Enlisted vs Non-Enlisted Suppliers

Table of Content

Such as enlisted supplier and non-enlisted supplier Enlisted supplier: Enlisted supplier refers such supplier, are listed by the enlistment procedure of “Pillion Group” Non- enlisted supplier: non-enlisted supplier refers such supplier, are not listed by the enlistment procedure of “Pillion Group”. 1. 08 Purchase Matrix: Below is the purchase matrix which is marked by “yes” or “no”. Yes indicates the “authorization” for purchase and No indicates “non-authorization” for purchase.

Serial no Types of purchase Enlisted Non-enlisted Raw material supply chain Yes 2 3 without nomination in case of nomination Production consumables including machineries spare parts 4 Nan-production consumables (such as printing & stationary, office supplies and housekeeping materials) Yes No 5 Spares parts of vehicle IT equipment and accessories 7 Cape for construction 8 Cape for machinery & equipments 01. 09 Purchase Committee (PC) A. The purchase committee (PC shall comprise of following members: member from one board 2. Four members from the NONCOM B.

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Formulation of the Committee: 1. Chairman of the PC shall be board representative 2. Member secretary and convener: Head of HER, Admit & CARS Member: GM- Operation, Garments Unit 4. Member: GM- Operation, Textiles Unit 5. Member: Chief Financial Officer C. Quorum of the Meeting: 1. One 3. At minimum Chairman of the PC and Member Secretary shall to be present along tit any of the committee. D. Meetings of the committee: The meeting of the committee can be done in two ways: 1. Formal From 2. Circular From The committee must sit on once in month even there is no specific agenda.

When there is a specific case the committee can physically or can take decision in circular from if physical meeting is not possible. The decision of the committee shall come in hear from of minutes which shall be prepared, presented and circulated by member secretary of the committee. 01. 10 Quality Management System (SMS): The EGG shall ensure and establish the proper quality management system within he group so as to ensure the buying input shall conform the desire output. In this regard an independent Quality Assurance Department shall ensure all the raw materials purchase is randomly certified by the said independent department . S such for raw material supply chain ever lot that has been received by the store shall separately certified by the Sac’s in the form of Quality Management System. The Independently Quality (SQ) Department shall submit report to the Purchase Committee (PC) on monthly basis about the quality of the raw material procured and the problems that were encountered. SECTION – THREE Operational Policy Contents Page No. 3. 01 General Purchase Documents Flow, Approval and Control 22 A. Material requisition B. Material issue note C. Purchase requisition D. Re-order level E.

Obtaining quotation – only for non-enlisted purchase matrix F. Process of approval of quotation- only for non-enlisted purchase matrix 22 23 29 29 J. G. Purchase order H. Preparation of purchase order I. Details of purchase order Inspection and verification of product Invoicing Payment procedure Suppliers balance confirmation Advances to supplier 30 K. 33 L. 33 M. 33 N. 33 03. 02 Cash Purchase a. Production breakdown b. Safety issue c. Materiality In case of serial number a & b 33 d. A. Material requisition: When need for material arises then materials are asked for to store department in a material requisition slip.

If the desired goods are available then goods are supplied. If goods are not available then goods are asked to supply chain department in the form of purchase requisition slip. B. Material issue note: When store department supply the demanded goods then store department issue a material issue note that they have supplied the demanded goods on the basis of stock & demand of material. C. Purchase requisition: If goods are not available then goods are asked to supply chain apartment in the form of purchase requisition slip. D.

Reorder Level: Then supply chain personnel verify the eligible enlisted supplier & amount of price that they quoted in their approved quotation. E. Obtaining quotation – only for non-enlisted purchase matrix: If the asked goods are not available to the enlisted supplier then company search for non- enlisted supplier & asked for price quotation. Specimen of Material Requisition Slip Specimen of Purchase Requisition F. Process of approval of quotation: only for non-enlisted purchase matrix Step-OLL: preparation of CSS: to be done by respective supply chain executive.

Step-02: recommendation of CSS: to be done by head of supply chain/manager- supply chain. Step-03: endorsement of CSS: to be done jointly as follows. Serial no. Item type Financial involvement Endorsement party Production consumable including machineries spare Up to BET 50000 Concern factory head & sir. Manager- finance Above BET 50000 Concern factory head & SCOFF Non production consumables (such as printing , office supplies and housekeeping materials Up to BET 50000 Manager admit & senior manager finance Manager admit & SCOFF up to BET 50000 It equipment and accessories Head of IT & sir. Anger-finance Head of IT & SCOFF Step 4: Approval of CSS: to be done by the purchase committee. SSL NO. Product Description Unit Sty GM Enterprise Brand Coo entry of Origin Unit Price Amount sport Lifter 830/833 p CSS USA 295. 00 PC’s 300. 00 Specimen of comparative statement (CSS) Approved Price Quotation G. Purchase Order (POP): Purchase order is the document which officially circulates the terms of business with the supplier and shall be treated as such an important document that no purchase shall take place without the issuance of POP. H. Preparation of purchase order (POP): 1 .

Preparation of the purchase order: executive and above of supply chain department. 2. Authorization of purchase order: Authorized by Manager-Supply chain Head of supply chain I. Details of purchase order (POP): 1. Time to issue POP : a. For enlisted supplier: Within 48 hours from the receiving of PR. B. For non enlisted supplier: Within 48 hours after approval of CSS. Items to be included in purchase order (POP): A. Clear product information B. Quality information C. Price information D. Delivery information E. Mode of payment F. Arbitration clause G.

TAX & VAT information Copies of purchase order: The purchase order shall be prepared in the following number of copies: a. Original POP along with along with first original to be sent o the supplier. B. First original (supply chain’s copy) shall be acknowledged and returned back to supply chain department by the supplier. C. Second original copy to be sent to store department. D. Third original copy to be sent to the finance department. Control and numbering of POP: The POP shall be controlled by the supply chain department and a unique number shall be attached to each POP.

The number shall be controlled and register shall be kept and maintained by the said department in this regard. The POP must show its origin that whether it is the original copy/ 1st original copy/ 2nd original copy/ 3rd original copy. J. Inspection and verification of product: Receiving and verification: i. The ordered goods must be delivered only and only to the store. In no way the ordered goods can be delivered in the corporate head office. Ii. The store must receive the delivery Callahan only from the suppliers representative and not from any employee of “Pillion Group”.

After receiving the ordered product the store department shall ensure that the goods are delivered inconformity with the purchase order. Iii. Store shall receive the delivery Callahan after the sample-counting, the quantum of which shall not be less than 5% of the received goods. In ease the delivery Callahan has to be acknowledged without counting, such acknowledgement should clearly state “received without counting’ iv. The store department shall ensure QUA (Quality Assurance) clearance, issuance of MIR and recording in the store ledger within 48 hours after receiving of the goods. V.

The MIR shall be completed evidence of the quantity received and in case any dispute arises regarding the quantity received, the quantity recorded in the MIR shall be considered the quantity eligible for payment. No payment can be effected without having the MIR raised. Copies of MIR: MIR shall be prepared in four copies: a. Book copy shall be retained by the store department b. First copy to be sent to accounts department c. Second copy to be sent to supply chain department d. Third copy to be sent to the audit department. Specimen of a purchase order Specimen of MIR K. Invoicing 1 .

The supplier shall submit the related invoice along with the photocopy of the acknowledged delivery Callahan to supply chain department. 2. The suppliers invoice must quote the POP number. In no way photocopy and/or faxed invoice shall be considered and forwarded for payment. L. Payment procedure: The submitted invoice shall be forwarded to finance department for payment thin 72 hours of submission to supply chain department. The finance department shall strictly follow the terms and condition of the purchase order. The Tax & VAT shall be deducted as per the government rules and no exception can be done in this regard.

The supplier shall be settled twice in a month and queue shall be handed over only to the authorized representative of the supplier. The payments terms shall be as far as possible vide A/C payee queue. In no circumstances queue shall be issued in the name of owner of the supplier or any other name not in line with purchase order or invoice. M. Suppliers balance confirmation: As part of account payable management, the accounts department shall obtain the balance confirmation from all big suppliers and reconcile the accounts accordingly N. Advances to supplier: The policy of the EGG should be to discourage advance to be paid to any listed.

In case any advance to be paid to any supplier the following procedure should be followed: a) If the amount of advance is up to 25% of the purchase order, the head of supply chain can approve the same. An approval from shall be filled up specifying the reason for the advance and approve by the head of supply chain prior to the issue of purchase order and to be sent to the finance apartment. B) If the amount of the advance exceeds 25% of the POP value, this can only be approved by the purchase committee. No advance shall be allowed to any supplier if previous advance is not adjusted. 02. 03 A. Reduction Breakdown: in this case factories are allowed to do cash purchase and obtain the post facto approval. B. Safety Issue: this exists when boiler, generator become vulnerable issue C. Materiality: transaction worth BET 5000 or below shall be considered as immaterial transaction. In such cases cash purchase can be allowed after making and IOW in the name of department which hall be adjusted within 48 hours after the disbursement of IOW. D. In case of serial number A & B: post facto approval means all the purchase procedures mentioned in the general purchase procedure shall be followed subsequently.

No cash purchase can be made from enlisted supplier. Specimen of an IOW slip. SECTION – FOUR Accessories supply chain Number 03. 02 purchase documents flow, approval and control of accessories A. Bill of material (MOM) B. Pre-cost sheet Purchase requisition (PR) Obtaining quotation- only for non-enlisted purchase matrix Page 35 35 c. 35 D. E. Process of approval of quotation – only for non-enlisted purchase matrix 35 F. Purchase order (POP) G. Preparation of purchase order H. Details of purchase order Doc meets Own acceptance L. Golden rules for acceptances M. Band acceptance N.

Maturity 36 361. 37 J. 37 K. 37 38 O. Advances to supplier 03. 02 purchase documents flow, approval and control of accessories A. Bill of material: 1 . Who will raise bill of material: merchandising executive or above 2. Who will approve the bill of material: head of merchandising? 3. Number of copies: total 05, one shall be sent to supply chain department, one to finance department, one to CAM department, one to store department and one shall be retained y the concern team of merchandising department. 4. Comprehensive listing quantity form of raw materials required to execute an order. . Input & output 6. Consumption ratio. Note: BOOM shall be prepared according to style/ work order and separate BOOM is not required to be prepared for different component of raw materials. B. Pre- cost sheet: 1 . Who will raise pre-cost sheet: merchandising executive or above.

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Enlisted vs Non-Enlisted Suppliers. (2018, May 16). Retrieved from


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