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Sop Purchasing

The document outlines the purchase order procedure for Venzon Lighting. It details the steps for generating a purchase order from a request, forwarding it to the supplier, securing an invoice once completed, and inspecting delivered items. The purpose is to set a clear process for controlling business purchases to obtain materials at low prices while meeting quality and delivery standards. Key objectives include establishing good supplier relations and ensuring on-time deliveries to meet operational needs. The scope, policies, terms, payment process, delivery dates, and inspection guidelines are also defined.

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Precious Mercado Quiambao
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442 views3 pages

Sop Purchasing

The document outlines the purchase order procedure for Venzon Lighting. It details the steps for generating a purchase order from a request, forwarding it to the supplier, securing an invoice once completed, and inspecting delivered items. The purpose is to set a clear process for controlling business purchases to obtain materials at low prices while meeting quality and delivery standards. Key objectives include establishing good supplier relations and ensuring on-time deliveries to meet operational needs. The scope, policies, terms, payment process, delivery dates, and inspection guidelines are also defined.

Uploaded by

Precious Mercado Quiambao
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as DOCX, PDF, TXT or read online on Scribd
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Lot 138 Panipuan, City of San Fernando,

Pampanga 2000
Phone: +63 45 455 1939 Mobile:
+63 9213276388
www.venzonlighting .com

CONTENTS:
TITLE: PURCHASE ORDER PROCEDURE PAGE NO. 1 of 3
SUPERSEDES: EFFECTIVE:
PREPARED BY: PRECIOUS QUIAMBAO APPROVED BY:

PURPOSE
The purpose of this procedure is to set out a clear process and expectation in controlling and fulfilling
business purchases.

OBJECTIVE
1. Make purchase commitments for materials, equipment and services at the lowest possible
price, consistent with quality and delivery requirements.
2. Ensure deliveries of purchase materials are available to meet Operational and Maintenance
requirements and that materials are delivered as required and agreed to by the company and
supplier.
3. Establish and maintain good relations with suppliers.

PROCEDURE
He/she shall receive a purchase request from the Warehouse Department.

He/she shall generate purchase order from the QB and shall be approved by the Admin Manager.

He/she shall forward the purchase order to the supplier and make sure that the supplier receives and
confirms the purchase order copy.

He/she shall secure an invoice from the supplier once the transaction is completed – payment made and
obtained complete orders.

SCOPE
Purchasing responsibility is the activity engaged in obtaining the materials, supplies and equipment
required in the company’s operations.

All procurement of materials/services covered by this procedure shall be initiated by the Purchasing Officer
through a purchase order duly approved by the Admin Manager.

This procedure applies to Purchasing Officer who is mainly involved in handling purchase order.
It covers all the purchasing activities of the following:

1. Purchase of all materials required for the company


2. Provide operations materials and machinery including spares, parts, tools and equipment.
3. Production and office equipment and other supplies
4. Housekeeping materials
5. Administrative services including renting cars.
6. All other items of purchase of materials and / or services.
Lot 138 Panipuan, City of San Fernando,
Pampanga 2000
Phone: +63 45 455 1939 Mobile:
+63 9213276388
www.venzonlighting .com
7. Tracking of incoming/pending deliveries effectively.
8. Follow up to ensure proper delivery
9. Inspection of materials for quality and compliance with specifications
10. Development of proper systems and procedures to enable the purchase function to be carried out
effectively.

POLICIES
Purchasing Officer will have the following responsibilities:
1. Identify suppliers, get appropriate information, such as quality, delivery, pricing and make all
purchasing commitments after obtaining approval from the Admin and Finance Department. The
Admin and Finance Manager has been appointed by the President to oversee all company’s
purchases.
2. Request quotations from suppliers who are qualified or can be qualified to meet all requirements.
3. Check the reliability of the supplier from their business status, facilities, and its ability to perform
timely, meet commitments should be part of the criteria considered to select a supplier.
4. Once acceptable suppliers have been identified, Purchasing Officer will recommend to the
President and Admin Manager for the selection of a supplier who can best respond to the
organizational requirements.
5. The materials specifications shall take into consideration the price and availability factors without
compromising on quality.
6. All materials purchase must be properly covered by an appropriate and duly authorized purchase
order and all the required information such PO Number, date, specifications, item description,
quantity, price, delivery address and delivery date, terms and conditions, supplier’s and
company’s information must be clearly stated.
7. Purchase orders should not be issued after delivery of materials. In exceptional cases, orders have
to be approved by the Admin Manager.
8. Advance payments against orders, cash against delivery shall be restricted to the barest
minimum.
9. All rejections and returns of the suppliers shall be at the suppliers cost and risk. Purchasing
Officer shall immediately inform the supplier of such rejection for replacement or return.
10. Relationship of purchasing personnel with suppliers and their representatives promote public
goodwill in every respect and at all times. Dealings with suppliers will be conducted with utmost
integrity, adhering to the highest standards of ethical and just conduct.

TERMS AND CONDITIONS


1. The standard terms and conditions should be printed and attached on the purchase order form.
(Attached file)
2. Terms should always be claimed upon and acceptance of the same by supplier and has to be
acknowledged in the purchase order copy.
3. Purchasing Officer shall always document all negotiations made with the supplier

All other terms would be applicable unless otherwise stated depending upon the nature of purchase order.
Lot 138 Panipuan, City of San Fernando,
Pampanga 2000
Phone: +63 45 455 1939 Mobile:
+63 9213276388
www.venzonlighting .com

PAYMENT
If the payment terms involve grant of advance, then penal interest _____________________on advance
will be charged in cases where the supplier is unable to execute the order.

DELIVERY DATE
The supplier must indicate the firm delivery date by which the materials will be shipped by them from the
date of receipt of purchase order/down payment.

Should the Supplier become aware that they will not be able to deliver the materials at the agreed date of
delivery, they shall immediately notify the Purchasing Officer in writing and make all efforts to ensure a new
delivery date in which acceptable to the company

If a delivery is delayed due to circumstances for which the Supplier is liable and the new delivery date
becomes unacceptable to the company, the company may claim default in the delivery provided a written
delivery claim is submitted to the Supplier and shall be entitled at their option:

a) To recover from the supplier agreed liquidated damages, % ________________


b) To purchase elsewhere, at the risk and cost of the supplier
c) To cancel the Purchase Order.
d) To expedite a refund on a down payment

INSPECTION
Upon delivery of materials at the company premises, Warehouse/Purchasing Department shall inspect the
items based from the purchase order form. If delivered in a timely manner, good condition, correct quantity
and description.

In case of defects, a copy of inspection report will be made by the Purchasing Officer and forwarded to the
supplier. The rejected materials will be returned to the supplier for replacement and all charges on same
will have to be accepted by the supplier. Replacement must be delivered immediately and no later than
three days.

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