Standard Operating Procedure (SOP) for GT Products Purchase Dept
Purpose
To establish a standardized process for procurement, ensuring timely, cost-effective,
and quality sourcing of materials and services required for manufacturing operations.
Scope
This SOP applies to all purchase activities for materials, components, machinery, and
services in the manufacturing unit.
Responsibilities:
- Purchase Manager: Oversee the procurement process and vendor management.
- Procurement Team: Execute purchasing activities and maintain records.
- Finance Team: Approve budgets and process payments.
- Quality Assurance (QA) Team: Verify material specifications.
Process Overview:
1. Requirement Identification:
- Input: Requirement Identification, Production Plan, Inventory Levels and Time of
delivery.
- Action: The inventory team raises a material request in the Material Requisition
form (MRF).
2. Vendor Selection:
Pre-approved Vendors: Use the list of approved vendors maintained by the
purchase department.
- New Vendor Onboarding.
- Vendor Checklist form needs to be filled and to be uploaded in Odoo and approved by
HOD.
- Collect vendor profiles and certifications.
- Conduct vendor assessment (quality, capacity, and compliance).
- Finalize vendors after management approval.
3. Quotation Process:
- Float a Request for Quotation (RFQ) to multiple vendors.
- Collect and compare multiple quotations based on:
- Price
- Delivery timelines
- Payment terms
- Quality standards
4. Purchase Order (PO) Issuance:
- Generate a Purchase Order in the ERP system.
- Generate a blanket purchase order
- Include:
- Vendor name and details
- Material description, quantity, and specifications
- Delivery terms and timelines
- Payment terms
- Approve the PO as per the delegation of HOD.
5. Delivery and Inspection:
Category Existing Product Lead New Product Lead Time
Time
RM 4 - 7 Working Days 4 - 7 Working Days
Pouch & Rolls 15 - 21 Working Days 30 – 40 days
Pcs & Dozen 7 - 15 Working Days 21 – 30 days
Boxes
Master Box 7 - 12 Working days 15 days
Chemical & 7 - 15 Working Days 15 – 21 days
Perfume
General Purchase Depending on Availability Depending on Availability
- Vendors should deliver materials to the warehouse or factory base on TAT or in
conformation with unit inventory person.
- Vendor Invoice should be in compliance to the norms (Annexure A)
- The QA team conducts a quality inspection based on predefined parameters.
- QA report should be shared before unloading the vehicle only in Email.
- Record results in the Goods Receipt Note (GRN) and acknowledge copy to be shared to
vendor on time.
- Sample approval for every batch before dispatch.
6. Inventory Management:
- Accepted materials are added to inventory in ERP.
- Rejected materials are communicated to the vendor with a Non-Conformance Report
(NCR).
- Rejected materials should not be in shop floor.
- Rejected can be approved to be utilized base Management approval.
7. Payment Processing:
- Submit the vendor invoice along with the GRN and PO to the finance team.
- Verify documents for consistency.
- Process payment as per agreed terms.
8. Vendor Performance Review: To be incorporated in Odoo in future
Periodically evaluate vendors on:
- Quality of materials
- Delivery timelines
- Pricing and cooperation
- Update the vendor database accordingly.
9. Documentation and Recordkeeping:
Mandatory Essential Records:
- Material Requisition Form (MRF) / System based
- Request for Quotation (RFQ) / System based
- Purchase Order (PO) / System based
- Goods Receipt Note (GRN) / / System based
- Vendor invoices / Hard copy
- Inspection reports / Hard copy - To be incorporated in Odoo
- Retain records for at least 5 years (or as per organizational policy).
Annexure A
Invoice Number
Invoice Date
PO Number
PO Date
Bill to address
Ship to address
Vendor GST number
GT Products (GST number)
Production Specification
COA
Quantity & Value as per PO
