MRF Name / Logo

QP06 – Purchasing

Section Release/Amendment Summary Issue Date

All Initial issue 1.0 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 ‘text boxes’ should be implemented.

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1 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.

2 Scope

This procedure contains the following sections:

4.1 Evaluation and selection of suppliers

4.2 Purchasing process and purchasing information
4.3 Verification of purchased product

5 Related documents

3 Abbreviations

ASL - Approved Suppliers List

ISO - International Standards Organisation
MR - Management Representative
OM - Operations Manager
PO - Purchase Order
QF - Quality Form
MP - Quality Procedure

4 Procedure

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

 Selection of suppliers that comply with required standards;

 maintenance an Approved Suppliers List (ASL);
 maintenance of relevant purchasing records.

The Purchasing Representative / MR holds and maintains the ASL and relevant purchasing records. Records are maintained
in accordance with Control of Records, QP02.

4.1 Evaluation and selection of suppliers

Suppliers are selected on their ability to provide quality goods and services, that conform to all relevant legislation and
which are delivered on time and at the right price.

Key product and material suppliers are listed on an Approved Suppliers List (ASL) which is maintained within the company’s
purchasing/accounting system. Key suppliers are monitored on the basis of historic and current performance and the list of
suppliers maintained accordingly. New suppliers whose performance may affect service quality are sent a Supplier
Questionnaire, QFaa in advance of, or in conjunction with an initial order.

An assessment of the supplier is made on receipt of a completed questionnaire, visit and/or initial performance. If deemed
necessary by the MR, a supplier audit may be arranged.

The selection of new suppliers is based on one or more of the following:

 ISO9001 accredited supplier identified through questionnaire return

 Visit feedback from MR or delegate
 Initial order quality/environmental performance
 Successful supplier quality/environmental audit

A supplier is deemed an approved supplier if listed on the ASL ( QFbb) and all purchasing authorities have access to this list.
Supported by relevant information e.g. completed Supplier Questionnaire, suppliers are rated / listed on the ASL using one
of the following codes:

A Approved
A* Approved, Preferred

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N Non-Approved

Suppliers currently being assessed may be rated as P, Provisional.

Historical suppliers who have a track record of product/service supply and have continued to meet quality/environmental
requirements are rated as historically approved, (A or A* code). For major suppliers, a contract of supply may be put in
place.

Where a key supplier has not been used for a period exceeding one year (as indicated by the purchasing system), the
supplier must be re-evaluated in parallel with the placement of a new purchase order and, where appropriate, the ASL
updated.

Records of the performance of suppliers are maintained via delivery note records. Any delivery issues such as damage,
shortage, incorrect supply, late delivery etc is recorded at goods receipt. If significant supplier nonconformity occurs, a
Quality Report, QFcc is raised and sent to the supplier for corrective action resolution. Key supplier performance is also
reviewed at Management Review meetings.

For outsource partners, in-depth supplier assessments are conducted. These may include detailed audits, on site meetings,
evaluation of supplier documentation, references and review of market sector information.

Where Service Agreements, Statements of Work and/or Functional Specifications exist, supplier performance is monitored
against these where appropriate and areas for performance improvement agreed.

4.2 Purchasing process and purchasing information

Purchases are made from an approved supplier except where the MR or Purchasing / Accounts Department authorises a
new supplier or specifies a supplier to satisfy particular requirements. In conjunction with an order being placed with a new
supplier, where the supply directly affects quality or the environmental impact of a service, the supplier is requested to
complete a Supplier Questionnaire QFaa and any other information deemed necessary to enable supplier evaluation.

Appropriate information is provided to the supplier to enable a request to be costed. This may be derived from a site visit
or through the provision of reports, drawings or job specifications. For goods/materials, final supplier selection is from the
approved list and is nominally based on best price.

Purchase authorisation is granted by signature(s) on a completed Purchase Order Form. For amounts up to £xxx, the
Purchase Order Form must be signed by the originator’s Line Manager. For amounts in excess of £xxx the PO must be
signed by a Director.

Receipt confirmation of a PO is always recorded or requested from the supplier and is stored electronically under the
relevant reference. A copy of the PO is held as an open PO on the system to await receipt of a signed delivery / job
acceptance note and supplier invoice.

Relevant purchasing information is maintained in both hardcopy and electronic form to support the required level of
traceability and is accessible by authorised staff.

This information is retained in accordance with the Master Records List.

4.3 Verification of purchased product

Nominally all goods/materials are delivered to the company’s premises.

The verification of a delivery of goods/materials is carried out by the Operations Manager or a delegate against the supplier
delivery note and any supporting delivery documentation. On acceptance, via inspection (or physical count where
appropriate), the delivery note is signed / initialled as an indication of acceptance and forwarded to Purchasing / Accounts
to await invoice matching. Goods receipt is also booked in against the open PO on the system.

Any adverse issues (damage, shortages etc) are annotated on the delivery note where appropriate and the goods are either
rejected back to the supplier or appropriately stored until the order is satisfactorily completed. Under such circumstances,
the OM or delegate may raise a Quality Report QFcc to track the agreed corrective action. The delivery paperwork is then
filed to await invoice (or passed to the OM or delegate if a significant issue is noted).

In cases where a delivery note is not received from the supplier, the delivery is normally checked off against the original
order.

Subcontractors are approved by the MD and subcontract services are inspected on completion by the MR / OM or delegate;
the subcontractor’s job acceptance paperwork is then signed with a copy being retained by the company. This indicates

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that the task has been satisfactorily completed. If the quality of the work is not acceptable then the paperwork is
annotated accordingly and appropriate corrective action is initiated by the OM or delegate. Where the subcontractor does
not operate a satisfactory sign-off process, the company will complete a Quality Report for signature by the subcontractor.

On receipt of an invoice, the Accounts Department verifies the invoice against the original requisition, the PO and the
delivery note and if all is in order the invoice is considered ready for payment. Once final authority to pay is granted, the
invoice is then paid either electronically or by cheque/bankers draft and the purchasing records updated accordingly.

Records of verification are maintained by the company in accordance with the Master Records List and QP02 Record
Control.

5 Related documents

 Supplier questionnaire QFaa.

 Approved suppliers list QFbb.
 Quality report QFcc.
 Control of records QP02.
 Master records list.
 Purchase order.

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Appendix – Summary Flowchart

Purchasing requirement
identified

N
Approved
Supplier
supplier list
approved?

QFaa supplier Supplier

Y
questionnaire evaluated and
(as req’d) approved

PO including
PO raised, approved purchasing
supplier contacted and information
PO sent

Supporting PO
Product / service / information (as
material received required)

Delivery verified by OM
or delegate

N Issue recorded on
Delivery Delivery OK? delivery note. Quality
note report raised for
significant issue

Y
Quality report
Delivery note dated QFcc (as
and signed and filed required)
awaiting invoice

Delivery rejected to
supplier / credit
Invoice received and requested
matched to PO /
Delivery note

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