1.0 PURPOSE
1.1 It is established to provide a proper procedure for the approval of new suppliers, evaluation and re-evaluation of existing suppliers who are directly involved in providing raw and packaging materials.
2.0 SCOPE
It is applicable in purchase department.
3.0 RESPONSIBILITY
3.1 Director Operations Manufacturing
Management Representative
Quality Control Manager
4.0 PROCEDURE
Approval Of A New Supplier:
4.1 Evaluate a new supplier on the basis of following mentioned tips:
1 Make sure they can provide material(s) according to the specifications.
2 They are bound to reference of some other company or group of companies where they are already doing business.
3 Check the market stability of the party as well as the source from where they are taking material(s).
4 Punctuality in delivering material(s).
5 Ask them how long they can maintain a proper flow of material(s) with consistent quality and quantity.
6 Financial Stability
7 Market Repute
4.2 After fulfilling the above mentioned criteria ask the party to send samples of the required material(s).
4.3 Analyze the samples according to the Siza’s specifications.
4.4 First three consignments must be taken as trial of a supplier, if Quality Control passes the three consignments simultaneously then the supplier will be able to continue the supply of desired material(s) as a permanent supplier.
Evaluation and Re-Evaluation:
4.5 Once the company approves a supplier then it is very important to re-evaluate the performance of that supplier after every year to get the best possible results.
4.6 Approved suppliers can be re-evaluated by using the supplier evaluation and re-evaluation form.
4.7 All the required parameters for the re-evaluation have been defined in the form.
4.8 In case of poor performance company will intimate the supplier to improve the quality of the supplied materials otherwise company has the right to discontinue the contract without prior notice.
