GAC Turkmenistan – Service Delivery Procedure

ISO 9001:2008 APPROVED BY: DATE:

Standard procedure of work Purchasing Marine Manager

HEADING: June 2015
department with Logistics Department Logistics Manager

DEPARTMENT: Purchasing Department/ Logistics Department PRO NO:

SECTION: GAC-TM-SDP-PUR-005

1. PURPOSE:

 To ensure that all GAC Turkmenistan vessels and Shore Bases are adequately supplied with required
materials, equipment and services in accordance with statutory and operational requirements in
conformity with company policies.

PREPARED BY / DATE: REVIEWED BY / DATE: APPROVED BY / REVISION: No: PAGE

DATE NUMBER
Purchasing Superintendent / Marine Manager / Marine Manager / 4 GAC-TM-SDP-PUR-005 1 of 6
01.Dec.2011 03.06.2015 Logistics Manager
05.06.2015
 GAC Turkmenistan – Service Delivery Procedure

2. SCOPE:
- Present procedure is to be followed from the date of approval and signature by General Manager till
reviewed procedure will be approved and signed again.

3. REFERENCE:
- Documentation forms of Supply Chain Department and Documentation forms of Logistic department.

4. DEFINITIONS
- All procedure description has standard meaning of terms.

 RESPONSIBILITIES:
 Purchasing Coordinator
Purchasing Coordinator is responsible to ensure that the following is completed by purchasing department

 That the purchasing department confirm Material / Service requests received from Logistics
department are clear and contain full information before forwarding to potential supplier;
 Purchasing only to communicate with company approved vendors, manufacturers of equipment
or service providers to get quotation;
 Send minimum three quotations (if available) for Logistics manager approval for purchasers
 Issue Purchasing Order after approval to be attested by Logistics Manager
 Coordinate transport and logistics of materials (spare parts, consumables) and ensure timely
delivery;
 Interfaces with freight forwarding companies;
 Submit quotations to the Logistics Manager for their review and approval;
 To act on instructions of Logistics Manager on matters relating to purchasing for logistics
 Logistics manager is provided with all necessary information and documentation about
purchasing materials;
 Keep registration of all MRs received and their status.
 Send status spread sheet of all Material / Service Requests to logistics manager
 Keep up to date a list of approved suppliers and subcontractors. This list reflects the standard of
the service supplied over period of time.
 To ensure that procured materials will not harm personal, company property or the environment;

 Logistic Manager
Logistics Manager is responsible to ensure that the following is completed

 To approve Logistics material purchasers

 To assist the Purchasing Coordinator in matters regarding shipping documentation and customs
formalities as and when required for abnormal, critical spares, substantial or non-standard
shipments with the potential of significant financial loss to the company.
 To assist in local deliveries internally, as requested by purchasing coordinator.

Finance Manager (FM)

PREPARED BY / DATE: REVIEWED BY / DATE: APPROVED BY / REVISION: No: PAGE

DATE NUMBER
Purchasing Superintendent / Marine Manager / Marine Manager / 4 GAC-TM-SDP-PUR-005 2 of 6
01.Dec.2011 03.06.2015 Logistics Manager
05.06.2015
 GAC Turkmenistan – Service Delivery Procedure

 To provide final approval on cost.

PREPARED BY / DATE: REVIEWED BY / DATE: APPROVED BY / REVISION: No: PAGE

DATE NUMBER
Purchasing Superintendent / Marine Manager / Marine Manager / 4 GAC-TM-SDP-PUR-005 3 of 6
01.Dec.2011 03.06.2015 Logistics Manager
05.06.2015
 GAC Turkmenistan – Service Delivery Procedure

5. PROCEDURE
Properly issued and reviewed Material / Service request forms will be forwarded by logistics to
warehousing who will confirm if in stock with purchasing coordinator assistant in copy. The e mail subject to
be MR number and only one MR per mail. If in stock then he will seek approval.

If not in stock then warehouse will forward to local purchasing who will check and provide quotation
providing copy only to purchasing coordinator and purchasing coordinator assistant. Should it be sourced
then it will be sent for approval.

Should local purchasing not be able to source then it will be forwarded to international purchasing who
will check and provide quotation providing copy only to purchasing coordinator assistant in copy. Should it
be sourced then it will be sent for approval.

All queries regarding a purchasing request should be returned logistics department for clarification.

The expected completion time for quotations is as follows

Local non critical supply 7 days

Local critical supply 3 days
International non critical supply 14 days
International critical supply 7 days

Delivery terms for Critical or Non Critical are presently set as follows : -

 Local purchasing - Critical 15 days for 80%, non-critical 30 days for 80% and remaining within 45
days delivery to warehouse.
 International purchasing - Critical 45 days for 80%, non- critical 90 days for 80% and remaining
within 120 days delivery to Turkmenistan.
 In event of breakdown best possible delivery to be done and communicated to purchasing
coordinator the importance of this purchase.

a. Approvals
It is not for the Purchasing Department to determine the best available quotation.

Should be provided at all times three quotations (if possible) for approval. All three quotations are to be
sent to Logistics manager who will decide based on cost, quality and delivery times with purchasing
coordinator assistant in copy. And provide approval.

b. PO
A PO will be issued and signed by Logistics manager. Purchasing will then proceed with placing order
and arranging payment.

c. Tracking
A weekly tracking form is to be circulated with the latest action of each request and who next action is to
be expected by to all concerned departments.

PREPARED BY / DATE: REVIEWED BY / DATE: APPROVED BY / REVISION: No: PAGE

DATE NUMBER
Purchasing Superintendent / Marine Manager / Marine Manager / 4 GAC-TM-SDP-PUR-005 4 of 6
01.Dec.2011 03.06.2015 Logistics Manager
05.06.2015
 GAC Turkmenistan – Service Delivery Procedure

d. Damages, Shortages and Returned Goods

In the event of damage or shortage of goods received, the Purchasing Coordinator and Logistics
Manager are to be advised in writing as soon as possible stating the MR number, the Supplier and the
nature of the damage or shortage.

e. E-mails
At all times it is to be considered if the e mail communication is necessary to be copied to all parties.

6. RECORDS

RECORD NAME MAINTAINED BY RETENTION PERIOD

Purchasing Department archive Purchasing Coordinator 3 years

Assistant

7. FLOWCHART
- Standard Procedure of work Purchasing department with Logistic department.

PREPARED BY / DATE: REVIEWED BY / DATE: APPROVED BY / REVISION: No: PAGE

DATE NUMBER
Purchasing Superintendent / Marine Manager / Marine Manager / 4 GAC-TM-SDP-PUR-005 5 of 6
01.Dec.2011 03.06.2015 Logistics Manager
05.06.2015
 GAC Turkmenistan – Service Delivery Procedure

Standard procedure of work Purchasing Department with Logistic Department

Flow chart

Logistic Materials
Supervisor, receiving
stock at stock

Logistics Customs
coordinator clearance
on the bases of cargo

Delivery note

Signed DN
General Approval
Manager for purchasing
Not approved
and delivery
For approval
Approved

Purchasing DN
Delivery sending,
Department
request receiving
For delivery

For checking
Quotations

Logistics
coordinator, Quotations Delivery
Contact supplier

Logistic for delivery of cargo

Department

Approved Material Cargo collection

supplier readiness

PREPARED BY / DATE: REVIEWED BY / DATE: APPROVED BY / REVISION: No: PAGE

DATE NUMBER
Purchasing Superintendent / Marine Manager / Marine Manager / 4 GAC-TM-SDP-PUR-005 6 of 6
01.Dec.2011 03.06.2015 Logistics Manager
05.06.2015