MRF Name / Logo

MP06 Purchasing
(ection All Initial issue Release)*mendment summary +ssue 1.0 ,ate dd/mm/yy

Approved:

Management Representative

Note: Within this manual template, red italic text should be replaced by MRF specific information and any guidance in te!t bo!es" should be implemented#

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MRF Name / Logo

% Purpose

This procedure describes the process for the evaluation, selection and monitoring of suppliers and the processes and controls for the purchase and verification of goods and services.

(cope

This procedure contains the following sections: .1 ." .$ & !valuation and selection of suppliers #urchasing process and purchasing information %erification of purchased product Related documents

A'( I') MR )M #) M* M#

*bbre.iations
Approved 'uppliers (ist International 'tandards )rganisation Management Representative )perations Manager #urchase )rder Management '+stem *orm Management '+stem #rocedure

Procedure

It is the responsibilit+ of the Management Representative and the Purchasing Representative to ensure the implementation of this procedure including:

'election of suppliers that compl+ with re,uired standards. Maintenance an Approved 'uppliers (ist -A'(.. Maintenance of relevant purchasing records.

The Purchasing Representative / MR hold and maintain the A'( and relevant purchasing records. Records are maintained in accordance with /ontrol of 0ocuments and Records, M#01. /#% 0.aluation and selection of suppliers

'uppliers are selected on their abilit+ to provide ,ualit+ goods and services, that conform to all relevant legislation and which are delivered on time and at the right price. 1e+ product and material suppliers are listed on an Approved 'uppliers (ist -A'(. which is maintained within the compan+2s purchasing/accounting system. 1e+ suppliers are monitored on the basis of historic and current performance and the list of suppliers maintained accordingl+. 3ew suppliers whose performance ma+ affect service ,ualit+ or environmental integrit+ are sent a 'upplier 4uestionnaire, MFaa in advance of, or in con5unction with an initial order. An assessment of the supplier is made on receipt of a completed ,uestionnaire, visit and6or initial performance. If deemed necessar+ b+ the MR, a supplier audit ma+ be arranged. The selection of new suppliers is based on one or more of the following:

I') 70016I') 1 001 accredited supplier identified through ,uestionnaire return. %isit feedbac8 from MR or delegate. Initial order ,ualit+6environmental performance. 'uccessful supplier ,ualit+6environmental audit.

A supplier is deemed an approved supplier if listed on the A'( - MFbb. and all purchasing authorities have access to this list. 'upported b+ relevant information e.g. completed 'upplier 4uestionnaire, suppliers are rated 6 listed on the A'( using one of the following codes: A A9 3 Approved Approved, #referred 3on:Approved

'uppliers currentl+ being assessed ma+ be rated as #, #rovisional.

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MRF Name / Logo

;istorical suppliers who have a trac8 record of product6service suppl+ and have continued to meet ,ualit+6environmental re,uirements are rated as historicall+ approved, -A or A9 code.. *or ma5or suppliers, a contract of suppl+ ma+ be put in place. <here a 8e+ supplier has not been used for a period e=ceeding one +ear -as indicated b+ the purchasing s+stem., the supplier must be re:evaluated in parallel with the placement of a new purchase order and, where appropriate, the A'( updated. Records of the performance of suppliers are maintained via delivery note records. An+ deliver+ issues such as damage, shortage, incorrect suppl+, late deliver+ etc is recorded at goods receipt. If significant supplier nonconformity occurs, a Quality and Environmental Report, MFcc is raised and sent to the supplier for corrective action resolution. 1e+ supplier performance is also reviewed at Management Review meetings. *or outsource partners, in:depth supplier assessments are conducted. These ma+ include detailed audits, on site meetings, evaluation of supplier documentation, references and review of mar8et sector information. <here 'ervice Agreements, 'tatements of <or8 and6or *unctional 'pecifications e=ist, supplier performance is monitored against these where appropriate and areas for performance improvement agreed. /#$ Purchasing process and purchasing information

#urchases are made from an approved supplier e=cept where the MR or Purchasing / Accounts epartment authorises a new supplier or specifies a supplier to satisf+ particular re,uirements. In con5unction with an order being placed with a new supplier, where the suppl+ directl+ affects ,ualit+ or the environmental impact of a service, the supplier is re,uested to complete a 'upplier 4uestionnaire MFaa and an+ other information deemed necessar+ to enable supplier evaluation. Appropriate information is provided to the supplier to enable a re,uest to be costed. This ma+ be derived from a site visit or through the provision of reports, drawings or 5ob specifications. *or goods6materials, final supplier selection is from the approved list and is nominall+ based on best price. Purchase authorisation is granted by signature!s" on a completed Purchase #rder Form$ For amounts up to %&&&, the Purchase #rder Form must be signed by the originator's (ine Manager$ For amounts in e&cess of %&&& the P# must be signed by a irector$ Receipt confirmation of a P# is al)ays recorded or re*uested from the supplier and is stored electronically under the relevant reference$ A copy of the P# is held as an open P# on the system to a)ait receipt of a signed delivery / +ob acceptance note and supplier invoice$ Relevant purchasing information is maintained in both hardcopy and electronic form to support the re*uired level of traceability and is accessible by authorised staff$ This information is retained in accordance with the Master Records (ist. /#1erification of purchased product

3ominall+ all goods6materials are delivered to the compan+2s premises. The verification of a deliver+ of goods6materials is carried out b+ the #perations Manager or a delegate against the supplier deliver+ note and an+ supporting deliver+ documentation. )n acceptance, via inspection -or ph+sical count where appropriate., the deliver+ note is signed 6 initialled as an indication of acceptance and forwarded to Purchasing / Accounts to a)ait invoice matching$ ,oods receipt is also boo-ed in against the open P# on the system$ An+ adverse issues -damage, shortages etc. are annotated on the deliver+ note where appropriate and the goods are either re5ected bac8 to the supplier or appropriatel+ stored until the order is satisfactoril+ completed. .nder such circumstances, the #M or delegate may raise a Quality and Environmental Report MFcc to trac- the agreed corrective action$ /he delivery paper)or- is then filed to a)ait invoice !or passed to the #M or delegate if a significant issue is noted"$ In cases where a deliver+ note is not received from the supplier, the deliver+ is normall+ chec8ed off against the original order. 'ubcontractors are approved b+ the M and subcontract services are inspected on completion b+ the MR / #M or delegate> the subcontractor2s 5ob acceptance paperwor8 is then signed with a cop+ being retained b+ the compan+. This indicates that the tas8 has been satisfactoril+ completed. If the ,ualit+ of the wor8 is not acceptable then the paperwor8 is annotated accordingl+ and appropriate corrective action is initiated b+ the #M or delegate. <here the subcontractor does not operate a satisfactor+ sign:off process, the compan+ will complete a Quality and Environment report for signature by the subcontractor. )n receipt of an invoice, the Accounts epartment verifies the invoice against the original re,uisition, the #) and the deliver+ note and if all is in order the invoice is considered read+ for pa+ment. )nce final authorit+ to pa+ is granted, the invoice is then paid either electronicall+ or b+ che,ue6ban8ers draft and the purchasing records updated accordingl+.

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MRF Name / Logo

Records of verification are maintained b+ the compan+ in accordance with the Master Records (ist and M#0" Record /ontrol.

Related documents
Approved 'uppliers (ist. Record /ontrol M#0". Master Records (ist. #urchase )rder. #urchase Re,uisition M*1&. 4ualit+ and !nvironmental Report M*1 . 'upplier 4uestionnaire M*1$.

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MRF Name / Logo

*ppendi! % (ummary flo3chart

#urchasing re,uirement identified

3
'upplier approved? M*aa supplier ,uestionnaire -as re,uired. 'upplier evaluated and approved Approved supplier list

#) raised, approved supplier contacted and #) sent

#) including purchasing information

#roduct 6 service 6 material received

'upporting #) information -as re,uired.

0eliver+ verified b+ )M or delegate

0eliver+ note

3 0eliver+ )1?

Issue recorded on deliver+ note. 4and! report raised for significant issue

@
0eliver+ note dated and signed and filed awaiting invoice 4and! report M*cc -as re,uired.

Invoice received and matched to #) 6 deliver+ note

0eliver+ re5ected to supplier 6 credit re,uested

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