Ref.

No: ESCL-SOP-012

EGBA SPLIT-CLAMPS LIMITED

Rev. No: 00
Issue Date:12th Nov, 2012

Procurement Control
Procedure

Page 1 of 7

PROCUREMENT CONTROL
PROCEDURE

APPROVAL AND REVISION STATUS

Rev. No.
00

Issue Date

Revision

12/11/2012

Identification
First Issue

Prepared by

Reviewed

Approved by

Commercial
Manager

by
QHSE
Manager

Managing
Director

EGBA SPLIT-CLAMPS LIMITED

Ref. No: ESCL-SOP-012

Rev. No: 00

Procurement Control
Procedure

Issue Date:12th Nov, 2012

Page 2 of 7

CHANGE (S)/AMENDMENT (S)

The change(s)/amendment(s) noted below have been made and approved by the
Managing Director for issue.

Change/Amendment No.

Date

Page

Description of Change/Amendment

EGBA SPLIT-CLAMPS LIMITED

Ref. No: ESCL-SOP-012

Procurement Control
Procedure
1.0

Rev. No: 00
Issue Date:12th Nov, 2012
Page 3 of 7

PURPOSE
This procedure defines the method and responsibility for purchasing in order to ensure
that purchased products/services conform to specified purchase requirements.

2.0

SCOPE
This procedure is applicable to the purchasing of products and services and the
evaluation and selection of suppliers.

3.0

REFERENCES
NIS ISO 9001:2008, Quality Management Systems-Requirements.
NIS ISO 9000:2005, Quality Management Systems-Fundamentals and Vocabulary.
ESCL Quality Manual (ESCL-QM-001)
ESCL-SOP-013, Outsourcing Procedure
ESCL-SOP-014, Materials/Store Control Procedure
Form 108, Supplier Deficiency Report.
Form 120, Material Request
Form 121, Stock Card
Form 122, Supplier Evaluation
Form 123, Supplier Re-evaluation
Form 124, List of Approved Supplier

4.0

TERMS AND DEFINITIONS

The following terms and definitions and the ones given in ESCL Quality Manual and
NIS ISO 9000:2005 apply.

4.1

ESCL: Egba Split-Clamps Limited.

4.2

ISO: International Organization for Standardization

4.3

NIS: Nigerian Industrial Standard

4.4

Supplier: Organisation or person that provides a product to ESCL e.g. vendor of a

product, or provider of a service or information.

4.5

Contract: Agreed requirement between ESCL and a supplier to perform or provide

specified services or products respectively transmitted in writing.

4.6

Purchase Order: An official document issued by ESCL, which sets out all the
requirements for an order. This could be for foreign orders or for local orders.

EGBA SPLIT-CLAMPS LIMITED

Procurement Control
Procedure

Ref. No: ESCL-SOP-012

Rev. No: 00
Issue Date:12th Nov, 2012
Page 4 of 7

5.0

RESPONSIBILITIES AND AUTHORITY

5.1

Managing Director, Commercial Manager: Responsible for the overall purchasing

activity in the company, including review and approval of applicable Purchase Order/
contracts.

5.2

Department/Unit Heads: Responsible for making of requisitions as it concerns their

processes.

5.3

Storekeeper,

Requisition

Initiator

or

Technically

Competent

Personnel:

Responsible for the verification of purchased products before acceptance.

5.4

Storekeeper: Maintains records of all purchases, responsible for the receipt, control
and issuing of purchased products.

6.0

PROCEDURE

6.1

Purchasing of Product (Local Purchase)

6.1.1 Request for the purchase of materials, equipments and parts are raised by any
department/unit head for the approval the Managing Director or his designee.
6.1.2 For expediency/exigency, direct

cash purchasing of the required product is carried

out for some items.

6.1.3 For required purchases from suppliers, quotations are requested from approved ones
(see section 6.8.1 of this procedure). The quotations are only requested for items that
their pricing have not been established and accepted with the approved supplier.
6.1.4 Quotations that are received are analysed for best offers.
6.1.5 Based on the analysis, and approval, a local purchase order in favour of the supplier
is prepared for the approval of the Managing Director or his designee.
6.1.6 The local purchase order is not required for some minor items that are purchased
continually from the same supplier. In such cases, the vendor is informed verbally to
bring the item(s).
6.1.7 Only suppliers whose ability has been evaluated and placed in approved suppliers list
are used for all purchases (see section 6.8.1 of this procedure).
6.2

Purchasing of Product (Foreign Purchase)

6.2.1 Material Request containing detailed specification of the required material, equipment
or spare parts that cannot be purchased locally for reasons of availability, price or

EGBA SPLIT-CLAMPS LIMITED

Procurement Control
Procedure

Ref. No: ESCL-SOP-012

Rev. No: 00
Issue Date:12th Nov, 2012
Page 5 of 7

quality restraints is raised by any staff member subject to endorsement by their

department/unit head.
6.2.2 The request is forwarded to the Managing Director for verification and approval.
6.2.3 On approval, the Managing Director or Commercial Manager liaises with the
appropriate Original Equipment Manufacturer (O.E.M) or Buying House for the
purchase of the product.
6.3

Provision of Services by Suppliers

6.3.1 ESCL on the basis of need engages suppliers for the provision of certain services.
6.3.2 Only suppliers whose ability has been evaluated and approved are used for all such
services (see section 6.8.1 of this procedure). See also the Outsourcing Procedure,
Document Ref. No. ESCL-SOP-013 on control of outsourced processes in ESCL.
6.4

Purchasing Information

6.4.1 Each purchasing information (e.g. Purchase Order) issued to a supplier gives a clear
and precise information of the item to be purchased or of the scope of service to be
rendered.
6.4.2 The purchasing information is reviewed and approved before issue (see section 5.1 of
this procedure).
6.5

Verification of Purchased Product

6.5.1 Verification of purchased product is carried out to ensure they meet specified
requirements.
6.5.2 Each purchased product is checked against the relevant requisition/purchase order.
The quantity and quality of all items are checked and conforming products are
accepted.
6.5.3 The method of verification include as applicable
Visual inspection,
Test of product/sample.
6.5.4 Evidence of satisfactory verification is shown by endorsing the purchase document
(e.g. invoice, delivery note).
6.5.5 Nonconformities are resolved with the supplier (see document Ref. No. ESCL-QSP004). See also Form 108 for recording of nonconformities arising from supplied
products/services.

EGBA SPLIT-CLAMPS LIMITED

Procurement Control
Procedure
6.6

Ref. No: ESCL-SOP-012

Rev. No: 00
Issue Date:12th Nov, 2012
Page 6 of 7

Verification of Purchased Services

6.6.1 All contracts for the provision of services are controlled and interpreted in strict
compliance with the conditions of the contract in order to ensure that:
The scope of work has been properly executed;
ESCL is getting value for money out of the contract;
Invoicing made by the supplier is in accordance with contract requirements; and
Changes/variation in the contract is properly implemented.
6.6.2 The supplier is monitored and supervised during the service delivery process to verify
progress{see also the Outsourcing Procedure(ESCL-SOP-013)}.
6.6.3 Verification of purchased services by ESCL and/or client at the suppliers premises
prior to service release is carried out when required in a project. Information for such
verification is communicated to the supplier in the contract agreement.
6.6.4 Nonconformities identified in each outsourced service is properly documented and
closed out (see document - Ref. No. ESCL-QSP-004). See also Form 108 for
recording of nonconformities arising from supplied products/services.
6.7

Receipt of Purchased Products and Services

6.7.1

Products

6.7.1.1 Purchased products are received after verification upon satisfying the conditions
specified in the purchasing information or changes thereof.
6.7.1.2 The received product is entered in the Stock Card (Form 121).
6.7.1.3 Every purchased product (whether direct cash purchase or vendor supplied) is
received into stock.
6.7.2

Services

6.7.2.1 Services are received upon satisfying the conditions specified in the contract
documents or changes thereof.
6.7.2.2 Only duly accepted service is invoiced by the supplier.
6.8

Evaluation of Suppliers

6.8.1 Suppliers to ESCL are evaluated, then selected and placed on a list of approved
suppliers(Form 124). The evaluation enables ESCL select suppliers with the requisite
ability to supply products including services that meet the company requirements.

EGBA SPLIT-CLAMPS LIMITED

Procurement Control
Procedure

Ref. No: ESCL-SOP-012

Rev. No: 00
Issue Date:12th Nov, 2012
Page 7 of 7

6.8.2 All suppliers of products and services are issued with the Supplier Evaluation Form
(Form 122) for completion.
6.8.3 The suppliers are approved on the basis of any of the following criteria:
Track Record(TR);
Site Visit/Audit(SV);
Sole Source Supplier(SS);
Approved System by Certification Body(AS).
6.8.4 Re-evaluation of suppliers
6.8.4.1 Re-evaluation of suppliers is made every three years.
6.8.4.2 The criteria for re-evaluation include (see Form 123):
Quality of past deliveries;
Delivery time;
Service provision (response, communication);
6.8.4 Records of the results of the evaluation and re-evaluation are maintained.
6.9

Supplier Performance
Deficiencies encountered as a result of the supply of product by suppliers in the areas
of quality, delivery, service provision are documented in Form 108. The information is
used as an input for the re-evaluation of the supplier.

7.0

RECORDS

7.1

Material Request (Form 120).

7.2

List of approved suppliers(Form 124)

7.3

Evidence of product verification.

7.4

Stock Card (Form 121).

7.5

Supplier Nonconformity Record (Form 108).

7.6

Supplier evaluation records (Form 122).

7.7

Supplier re-evaluation records(Form 123)