PURCHASING PROCEDURE
1.0 PURPOSE
The purpose of this procedure is to provide transparency and consistent
documentation and method for the control of materials procurement.
This shall ensure of proper costing of materials and proper supplier compliance
and faster deliveries.
2.0 SCOPE
This procedure is applicable to both main office and project sites request for
materials, this documents and information's herein is the property of AMWELD
INDUSTRIAL SERVICES AND TRADING and is issued in strict compliance.
It shall be not reproduced, copied or given to any party without express
permission.
3.0 REFERENCES
3.1 ISO 9001:2008 Quality Management System - Requirements
3.2 ISO 9000:2005 Quality Management System – Fundamentals and
Vocabulary
4.0 DEFINITIONS
Inspection – conformity evaluation by observation and judgment accompanied as
appropriate by measurement, testing or gauging.
Test – determination of one or more characteristics according to a procedure.
Validation – confirmation, through the provision of objective evidence, that the
requirements for a specific indented use or application have been fulfilled.
Purchase Requisition (P.R.) – is a request or instruction to Purchasing to
procure a certain quantity of a material or a service so that it is available at a
certain point in time. It also includes the complete description and quantity of the
item to be purchased.
Purchase Order (P.O.) – is a document issued to a seller, indicating the
description, type, quantities, prices, discount, payment terms and condition for
products or services the seller will provide.
Canvass Form – is a document wherein two (2) to three (3) suppliers are
indicated for comparison of prices and technical offers. Quotations from the three
suppliers are being attached to this as supporting document.
PURCHASING PROCEDURE
Project Materials – these are the materials to be utilized during and after the
construction phase of the project. It may also be reflected in the Final Bill of
Quantities (BO3) submitted by Project In-charge.
Non-project Materials – these are the materials usually for office purposes such
as ink, office supplies and Photocopier toner.
5.0 PROCEDURES
5.1 PURCHASING MATERIALS
DOCUMENT
RESPONSIBLE ACTIVITY
EVIDENCE
Requestor 1. Seek P.R. Form from the Purchasing Purchase
staff. Requisition
Purchasing 2. Receive Requisition form from the *Purchase Requisition
Officer requestor checked by requestor’s Issuance Logbook
Department Head.
White - Purchasing (for PO attachment)
Green- Purchasing (per Project filing)
Yellow- Requestor’s copy
Finance/CEO 3. Process P.R. for approval by Admin
Manager and CEO
If not approved- inform requestor for
clarification
Purchasing 4. Once approved, canvass the materials. Canvass Form
Officer
President & CEO 5. Submit for evaluation and approval of the
President & CEO.
If not approved- conduct re-canvassing
again
Purchase Order
Purchasing Staff 6. Prepare Purchase Order with three (3)
copies
*Purchase Order
White – Purchasing (Masterlist) Issuance Logbook
Green – Accounting (Voucher’s payment)
Yellow – Purchasing (per project filing/
Non-project folder)
Purchasing Officer 7. Submit for final checking and signature.
Masterlist of
Purchasing Officer 8. Submit to Admin & Finance Dept. and Approved Purchase
wait for budget allocation. Order
Purchasing Staff 9. Update masterlist of approved PO.
PURCHASING PROCEDURE
Purchasing Officer 10. Purchase the materials according to
approved purchase order.
5.2 RECEIVING AND ENDORSEMENT OF PURCHASED MATERIALS
DOCUMENT
RESPONSIBLE ACTIVITY
EVIDENCE
Requestor/ 1. Received and inspect purchased materials Materials Inspection
Purchasing according to specs requirements. Report
Officer/Finance/ Purchase Order
PIC/ (photocopy from
Warehouseman supplier)
*Supplier Delivery
Receipt (external)
NCPAR Form
If not accepted- report immediately to
Purchasing Officer and advise QA/QC to verify
the material if damaged
a. Seek information from QA/QC Officer
b. Inform supplier regarding the rejected
material
c. Coordinate possible inspection with
supplier Materials Inspection
d. Replace the rejected material Report
Purchasing Officer 2. Received materials inspection report from *Supplier Delivery
requestor, PIC or warehouseman Receipt (external)
Purchasing Staff 3. File all necessary received documents
