LOGO COMPANY NAME Document No: QMS-SOP-PUR

Standard Operating Procedure Version:00

Title: PURCHASE Version Date: 01.07.2021

INRODUCTION
Purchasing is the process a business or organization uses to acquire goods or services to accomplish its goals. Although
there are several organizations that attempt to set standards in the purchasing process, processes can vary greatly between
organizations.

PURPOSE
To define procedure to ensure on time purchasing of Materials / Services & to ensure purchased product / services
conforms to specified requirement.

SCOPE AND APPLICABILITY

All raw material, Packaging Material & Services purchased which affects Product Quality & Quality Management System

RESPONSIBILITY

DESGINATION RESPONSIBILITIES
Purchase In-charge  Developing and implementing purchasing strategies.

 Managing daily purchasing activities, supervising staff, and allocating tasks.

 Research potential suppliers / vendors

 Sending registration Form to new supplier and evaluating new supplier
 For outsourced process, visiting supplier premises for evaluation and selection
 Maintaining the List of Approved Supplier
 Collecting Purchase Indent from the user dept & raising the requirements of
materials/services to approved supplier.
 Compare and evaluate offers from suppliers.
 Negotiate contract terms of agreement and pricing
 Taking approval from Facility Head / Director
 Preparing Quotation and sending to the supplier against the selected quotation
 Track orders and ensure timely delivery
 Review quality of purchased products
 Enter order details (e.g. vendors, quantities, prices) into internal databases
 Maintain updated records of purchased products, delivery information and invoices
 Monitor stock levels and place orders as needed

 Coordinate with store dept. to ensure proper storage

 Managing supplier relations and negotiating contracts, prices, timelines, etc.

 Maintaining the supplier database, purchase records, and related documentation.

 Ensuring that all procured items meet the required quality standards and specifications.

 Working to improve purchasing systems and processes.

 Adhere to laws, rules and regulations

 LOGO COMPANY NAME Document No: QMS-SOP-PUR

Standard Operating Procedure Version:00

Title: PURCHASE Version Date: 01.07.2021

ABBREVIATION & DEFINATIONS

SR. NO. ABBREVIATION/TERMINOLOGY EXPANSION/DEFINATION

1 PUR Purchase

2 PO Purchase Order

3 SEF Supplier Evaluation Form

4 SPR Supplier Performance Rating

5 SREF Supplier Re-Evaluation Form

6 PIF Purchase Indent Form

7 LAS List of Approved Supplier

INPUT

SR. NO. INPUT DESCRIPTION SOURCE REFERENCE

1. Material requirement Any dept QMS-F-PIF

2. Service requirement Any dept Mail/Verbal

PROCESS
A. SUPPLIER/VENDOR EVALUATION & APPROVAL
SR. NO. ACTIVITY/PROCESS RESONSIBILITY REFERENCE
1. Suppliers (Vendors) shall be evaluated based on the data collected Purchase Dept. QMS-F-SEF
and evaluated using supplier evaluation form (QMS-F-SEF)

2. Supplier evaluation through supplier Questionnaire is required to Purchase Dept. -

be done for Raw Materials, Consumables, Tool/ accessories,
Machine spares and all that affect the quality of product
manufactured and supplied.

3. HEAD / MANAGER-Purchase, and user if required review the Purchase Dept. -

received supplier questionnaire form the Suppliers.

4. On satisfactory assessment of the supplier questionnaire, the Purchase Dept. -

supplier may be asked to supply sample if required. The sample
wherever received shall be evaluated by user/quality dept. and
approved by HEAD / MANAGER of user department.

5. On successful evaluation, the same is authorized by MD/CEO CEO/Director -

 LOGO COMPANY NAME Document No: QMS-SOP-PUR

Standard Operating Procedure Version:00

Title: PURCHASE Version Date: 01.07.2021

6. On satisfactory performance, the supplier may be put on Purchase Dept. QMS-F-LAS

approved supplier list/record and cleared for procurement.

(Note: As on 01-06-2021, Suppliers from whom purchase is made

are added in the list of approved suppliers and maintain the
registration and evaluation form only for new supplier added
after 01.06.2021)

7. Subsequently the performance shall be monitored as per supplier Purchase Dept. QMS-F-SPR
Performance Rating.
8. In case of Job Work items and specific vendors as decided by Purchase Dept. QMS-F-SEF
Purchase shall arrange for visit of vendor's premises if required for
assessment.
9. The approved supplier list shall be maintained in Purchase. Purchase Dept. QMS-F-LAS

10. Supplier (existing) shall be Re-evaluated based on the following Purchase Dept. QMS-F-SREF
criteria and supplier re-evaluation form PUR-F-SREF
 No Purchasing for more than 12 Months
 Repeated Mistakes in Delivery / Quality for 3 Months
 Poor Customer Handling - Communication Complaints
 Poor Corrective Actions - No Improvement for 6 Months
 In case of poor performance based on Supplier Rating
Complete Re-Evaluation

B. FIRST TIME PURCHASE/TRIAL PROCUREMENT

SR. NO. ACTIVITY/PROCESS RESONSIBILITY REFERENCES
1.. In case of trial / first time buy, Suppliers shall be cleared for trail Purchase Dept. QMS-F-SEF
purchase using Supplier Evaluation Form.
2. Send the Supplier Questionnaire and obtain all the relevant Purchase Dept. QMS-F-SEF
details.
3. On satisfactory quality / performance confirmation and on receipt Purchase Dept. QMS-F-SEF
of Supplier evaluation questionnaire by then, the Supplier shall be
included in the Approved Supplier Record.
4. If the trail is not successful, reject the Supplier and record the Purchase Dept. QMS-F-SEF
same in the Supplier Evaluation Form.
NOTE: Supplier Evaluation Questionnaire is not mandatory for supplier evaluation. In case the supplier evaluation
questionnaire is not received for any reason, evaluation shall be carried out based on the available information

C. PURCHASE
SR. NO. ACTIVITY/PROCESS RESONSIBILITY REFERENCES
C1. GENERAL
 LOGO COMPANY NAME Document No: QMS-SOP-PUR

Standard Operating Procedure Version:00

Title: PURCHASE Version Date: 01.07.2021

Purchasing activity covered under this work instruction includes,

1. Purchase Dept. -
Raw Materials and Consumable.
 Raw Materials.
 Tool and Accessories.
 Consumable Materials.
 Machine Spares.
2. Purchase of capital Items / Stationary/ sanitary items are not Purchase Dept. -
covered and mode of purchase shall be as decided by Purchase
In-charge.
3. Purchase Indent or service requirement received from user Purchase Dept. QMS-F-PIF /
department for all Purchases to be made by Purchase Service
department. requirement
mail
4. Purchasing Data included in the Purchase Indent/Mail is reviewed Purchase Dept. -
by Purchase Personnel and if found inadequate, the same is
requested from the Indenter before sending Inquiry to
Supplier/Sub-contractors/vendors.
All Purchase Indent received in Purchase department shall meet
5. Purchase Dept. -
following as a minimum,
 Signed by Indenter and Approved by Purchase in-Charge /
MD
C2. PURCHASE PLANNING
Purchase planning is done based on.
1. Purchase Dept. QMS-F-PIF /
 Purchase requirement received from concerned dept. Service
(Purchase Indent form / Mail) requirement
 Minimum stock to be maintained. mail
 Forecast by Marketing / MD
C3. PURCHASING
1. Based on Purchase planning Purchase Personnel prepares the Purchase Dept. -
Purchase Inquiry details and identifies the Suppliers from the
Approved Supplier List.
2. Purchase Personnel invites quotation from suppliers and existing Purchase Dept. Mail
valid Price List can be treated as Quotation.
3. In case of quotation is obtained on phone, the same is Purchase Dept. -
authorized.
4. Purchase Personnel review the Quotation and identify lowest Purchase Dept. -
priced technically accepted offer. Indenter is consulted in case of
any ambiguous requirements.
Based on the acceptable offer, Purchase Personnel prepares
5. Purchase Dept. QMS-F-PO
Purchase Order and reviews for minimum of following before
forwarding for approval,
 Availability of Product Information / Specifications.
 Quantity.
 Descriptions of material for complete information including
 LOGO COMPANY NAME Document No: QMS-SOP-PUR

Standard Operating Procedure Version:00

Title: PURCHASE Version Date: 01.07.2021

that of quality.
 Rates & Payment Terms (Commercial).
 Packing and Dispatch instructions.
 Inspection Report/Product Verification/TC
 Delivery Terms.
Finally Purchase Order is approved and authorized. Purchase In-charge
6. -
ME/CEO/

The approved Purchase Order is scanned and sent to the supplier

7. Purchase Dept. Mail
Make follow up of the released Purchase Order.
8. Purchase Dept. -
If material is rejected, receive incoming inspection report from
9. Purchase Dept. QMS-F-INR
Quality Control Department and inform informs to supplier and
material is sent back to supplier
Send the rejection details for rejected material to supplier
10. Purchase Dept. QMS-F-NCR
through mail. Take correction and Corrective action from supplier
and record the same in the Non-Conforming Report. Then submit
it to quality department for record.
C4. CASH PURCHASE WITHOUT PURCHASE ORDER
1. Cash Purchase is not to be encouraged and only to be exercised in Purchase Dept. -
emergencies, unforeseen situations etc.

2. This restriction is applicable for all items/ materials related to Purchase Dept. -
Raw Material and other items that form a part of the finished
product or used for related activities.

3. Items purchased related to transport, stationary, sanitary etc. can Purchase Dept. -
be excluded from this restriction. However, it is recommended
that such items are also planned and purchased through purchase
orders as far as possible.

4. Under immediate/ urgent requirement for purchase of items/ Purchase Dept. -

material, CASH PURCHASE WITHOUT PURCHASE ORDER is done.

5. The limit for such purchase is restricted to Rs.  5000/- per Purchase Dept. -
purchase.

6. The user department generates purchase Indent for such User Dept. QMS-F-PIF
purchases.

7. Material on receipt is processed as in case of regular purchased Purchase Dept. -

material through PO.

D. SUPPLIER/VENDOR PERFORMANCE RATING

 LOGO COMPANY NAME Document No: QMS-SOP-PUR

Standard Operating Procedure Version:00

Title: PURCHASE Version Date: 01.07.2021

SR. NO. ACTIVITY/PROCESS RESONSIBILITY REFERENCES

D1. GENERAL PURCHASE/JOB WORK

1. The performance of suppliers shall be monitored on a regular basis Purchase Dept. -

based on their ability to meet requirements including that of
quality.

2. The performance of suppliers shall be assessed once in a six Purchase Dept. QMS-F-SPR
month.

3. Purchase In-charge shall communicate adverse performance to Purchase Dept. -

supplier as above or earlier if felt necessary.

4. Supplier who has been deleted from approved supplier list / Purchase Dept. -
record because of non-satisfactory performance can be reconsider
if sufficient proof is provided for improvements.

5. Grading of suppliers shall be as follows. Purchase Dept. -

Grade A: 80% and above
Grade B: 60-79%
Grade C: 59-40%
Grade D: 39% & less
6. Grading shall be informed to suppliers for improvement and if they Purchase Dept. -
do not satisfy minimum requirement of 60% & above, shall be
disqualified and deleted form the Approved Supplier List.
7. Send warning letter / mail to the supplier if supplier gets less than Purchase Dept. -
60% marks in Four consecutive months. 
8. De-list supplier from the list of approved suppliers if he scores less Purchase Dept. -
than 60% marks in Five consecutive months.
9. Inform all concerns about delisting of supplier from List of Purchase Dept. -
approved suppliers

D2. SERVICE PROVIDER

1. Service Providers shall be assessed based on the Quality and Purchase Dept. -
timely service provided

OUTPUT

SR. NO. OUTPUT DESCRIPTION USER REFERENCE

1. Purchased Material Production/Other Dept. Invoice, Test Certificate, etc.
2. Outsourced Services Production/Other Dept. Service Bill, Service Report,
Inspection Report, etc.

VERIFICATION
 LOGO COMPANY NAME Document No: QMS-SOP-PUR

Standard Operating Procedure Version:00

Title: PURCHASE Version Date: 01.07.2021

SR. NO. ACTIVITY RESPONSIBILITY REFERENCE

1. Purchased Material – Incoming Inspection QC Dept. Incoming Report
2. Outsourced Services - Verification User Dept./QC Dept. All clearance mail

EFFECTIVENESS CRITERIA / QUALITY OBJECTIVES

SR. NO. OBJECTIVE TARGET FREQUENCY

1. PO should be released within 24 hours after 100% Monthly
receival of purchase indent form from user

2. External Supplier Performance Rating should 60% Six Monthly

be minimum

RECORDS

SR. NO. DOCUMENT ID NAME OF DOCUMENT LOCATION CUSTODIAN RETENTION

PERIOD
1. QMS-F-PIF Purchase Indent Form File Purchase Dept. 1 year
2. QMS-F-SEF Supplier Evaluation Form File/Drive Purchase Dept Till de-listing
3. QMS-F-LAS List of Approved Supplier Drive Purchase Dept Till any change
4. QMS-F-PO Purchase Order File Purchase Dept 1 year
5. QMS-F-SPR Supplier Performance Rating Drive Purchase Dept 1 year
6. QMS-F-SREF Supplier Re-Evaluation Form File/Drive Purchase Dept 3 years
7. QMS-F-RA Risk Assessment Register Drive Purchase Dept Till any change
8. QMS-F-QB Quality Objectives Drive Purchase Dept 1 year
9. QMS-F-NCR Non-Conformity Report Drive QC Dept 1 year

PROCESS MAP
INFRASTRUCTURE FORMATS / RECORDS

Table, Computer, Telephone,  Purchase Indent Form

Printer, Scanner, Internet,  Supplier Registration Form
Stationary, etc.  Supplier Evaluation Form
 List of Approved Suppliers 
 Purchase Order
 Supplier Performance Rating
 Non-Conforming Report
 Supplier Re-Evaluation Form
 Risk Assessment Register
 LOGO COMPANY NAME Document No: QMS-SOP-PUR

Standard Operating Procedure Version:00

Title: PURCHASE Version Date: 01.07.2021

 Quality Objective Sheet

INPUTS PROCESS OUTPUT
Supplier Evaluation Evaluation Adding Supplier in the List of Approved Supplier or Rejecting
Supplier

Purchase Requirements (Material / Purchasing Purchased (Material / Services),

Services)

PROCESS INTERACTIONS PROCESS OBJECTIVES

OWNER
MEASURE TARGET FREQUENCY
Store, Quality, Sales & Marketing, Department PO should be released within 24 100% Monthly
Suppliers, Quality Control Head Purchase hours after receival of purchase
indent form from user

External Supplier Performance 60% Six Monthly

Rating should be minimum

CHANGE CONTROL
SR. NO. SECTION NO. NEW REVISION STATUS BRIEF DESCRIPTION OF REVISION APPROVED BY

CUSTODIAN (INITIALS)

REV NO. DATE

1. All section 00 10.07.2021 All new Issue System Co-
Ordinator