Procedure for Supplier Evaluation

Document Code

Issue

PUR/PR/

01

Effective Date

1. Purpose
1.1.
To provide a system for Pre-qualification and registration of suppliers
1.2.
And Continual evaluation and performance monitoring
2. Scope
2.1.
This procedure is applicable to all purchases related to, components,
accessories, and subcontracted services.
3. Responsibilities
3.1. Purchase officer is responsible for selection, pre-qualification and registration
of suppliers.
3.2. Store officer maintains the specifications of purchase materials.
3.3. Manager Purchase is responsible for continual evaluation and performance
monitoring of approved suppliers.
4. Procedure
4.1. Company purchases Company purchases related to product and machinery
include the following:
4.1.1.1.
4.1.1.2.
4.1.1.3.
4.1.1.4.

Components/Parts
Machine Spare parts
Electronics items
Packing Material

4.2.Initial Evaluation and Registration of Suppliers Initially all the suppliers

are evaluated using the suppliers evaluation form.
4.3. Existing Suppliers Companys existing suppliers who have been dealing
with company for more than 1 year, are evaluated on the basis of their
previous performance history. Manager Purchase is responsible for
evaluation of existing suppliers. The results of evaluation are recorded on
the Suppliers Evaluation form. The Supplier Evaluation forms are reviewed
and approved by Manager Purchase.
4.4. After approval, Manager Purchase registers the suppliers in the List of
Approved Suppliers.
4.5. The Evaluation record and List of Approved Suppliers are maintained in
Purchase Department.

Page 1 of 3

Procedure for Supplier Evaluation

Document Code

Issue

PUR/PR/

01

Effective Date

4.6. New Suppliers are initially selected based on the following factors:
4.6.1. Quality
4.6.2. Credit facilities
4.6.3. Price
4.6.4. Market reputation
4.6.5. Experience
4.6.6. and reference of other clients
4.7. Quotations are taken from new suppliers and information is gathered about
their reputation and experience from references.
4.8. Purchase Officer evaluates the suppliers against their quotations and abovementioned parameters, and records the results on Supplier Evaluation form.
4.9. The Supplier Evaluation forms are reviewed and approved by Manager
Purchase.
4.10. After approval, Manager Purchase registers the suppliers in the List of
Approved Suppliers.
4.11. The Evaluation record and List of Approved Suppliers are maintained in
Purchase Department.
4.12. Continual Evaluation and Analysis of Suppliers Performance The
suppliers records are statistically compiled and analyzed after every 1 Year
by Manager Purchase.
4.13. CEO reviews this analysis.
4.14. Based on this analysis, corrective actions are initiated or preventive actions
recommended for improvement, using the Corrective/Preventive Action
(CPA) form.
5. Related Records
5.1. Suppliers Evaluation Form
5.2. List of Approved Suppliers
Prepared By:

Reviewed By:

Approved

Date:

Date:

Date:

By:

Page 2 of 3

Procedure for Supplier Evaluation

Document Code

Issue

PUR/PR/

01

Effective Date

Page 3 of 3