r Procurement Policy

Document # PRC"ool lssue #

lssue Date Paqes Paqe 1of2
1. Objectivel

The objective ofthe policy to document and streamline the procedure for yarn procurement from the local
is
and import€d yarn suppliers (Spinners)to meet the daily surplus quant ty ofyarn.

2. Scope:

This policy ls appllcable to SEL-Unit 08 and Unit 13-(Yarn Procurement Department)with imrned at€

3. Policyl
Pre-Assessnent Visit

1. The potential spinning mills will be surveyed first lor eligibilit"v if required due to first time
business.
2. The initial survey (Pre-selection Surve\') ofmills will be conducted by approved team.
3. The overall machinery setup, machinery layout, production and custotner base, current qualiiy
levels and existing quality plan and certifications, current inlrastructure and backup plan tbr Lltilitjes
will be checked. (Prescribed Fonnat to develop ifagreed). lt will further cover the power, backup
and lailure contingency plans
4. We will select potential l2 to l5 rnills. Our prioritl, will be the mills close to Karachi or in loNer
region ofPunjab
5. Wewill assist them in developing the said slub/plain/core yarn ifanykind ofhelp is required once
selected for supply.
6. It is better to Categories and Separate mills for individual larn types for Plajn, Slub and Elastane
yarn separately.
7. The Mills rvill be ranked on the basis ofconducted survev and sLrpply of yarn and classified in 3
colors like Green, Yellow and Red- The green will be given pref'erence for each order..

Encujryjldlll1laqt
L The commercial depanment will send enquiries to respecti!e approved mills fbr count.
2. All the required standards will bc communicated rc supplier in advance belore the finalization ofthc
contractpurchase for his acceptance.
3. The Yarn supplier will be asked to give his understanding to comply with the required slandards
along with the price offer for supply ofyarn.
,1. ln-case ofany dispute/standard deviation from sl.andards the Spinner rvill write his rescr\ orion.
5. A joint committee comprises of Qualiq and relevant Denim Technical Team will evaluate the
results and $ill confinn the go ahead for production on revised standards for that partioular
yarn/supplier.
6. The contract will be rnade and it will also address the procedure in case ofoffstandard yam and the
decision on horv to handle the production if it does not oolnply rvith our standards.

finance Manager Yarn Procurement A!dit Manager GM Factory GN4 Financ€-Group Manasing Director
i$
corfident a not to be shown to any :"d or3'd patyaud., ff tii, t
r:(-oul.r . o ior "oo o."
 n Procurement Policy
Documentf (lssu€ for P r€-AD Drova ll lssue f
lssue Date

Preship!ur4Tqs!!g lD!!i!sProduotion)

). The spinner $ill be asked to inlorm the Soofly Yarn Procurement team at leasl two tothreedals in
advance before slarting the production so that the Quality inspector may visit lor checking during
production ofyam.
2. The Qualit], inspector will check the running quality.
3. lt should be made clear with the supplier that we \\,ill visit during production and will be given
access in different areas of the production floor where lhe qualily is running lrom Mixing 1()
Packing.
4. The Inspector will check quality in the lab in his presence and results will be compiled
5. He will also note down the running condition ofthe mill and cetain setting ofthe machine
especially the Autoconer fault (Quantun Classimat/Yarn Master) reports.
6. He will verii, the cotton in use and the stock ofcotton and olher running counts at that time in the
mills as per the approved lolmat-
7. In case ot'any dispute the malterwill be solved \vithin the same day jointly by Quality and
Respcctive Technical team either to carr) on or stopped the further production ofyarn.
8. A good prior planning is required for back up and alternate support

1. A separate office rvill be setup for the quaLity team to manage the daily activities.
2. 3 Quality lnspector are required with salary range beiween 50.000 and 60,000 prelerably with a
prior background of Qualio inspection.
TA,DA in actual will provided to them in case ilinspection is required along wifi flxed telephone
package.
-1. TNo will be stalioned in Lahore and Multan and one will be in rnills all the time to cover Sindh
area. Prelerence will be given to one NIuhan and one Lahore candidate so that they remain in their

5. The Qualit) of the yarn rvill be the responsibility of Quality team and they nrust satisfy the
management. In case of any dispute the commercial decision will be taken by cNl-Spinning and
CM Finance (Group).

4. Review Date:

The po lcy shall be reviewed ln December-2016 or earlier as per managernent discretion.

(tr
'201,

\o
Fin?rce Manater Yarn Proc!rem€nt Audit Manager GM factory GM.Finance-Group

CanJidential not to be shown to any z^d or j'd panyaudhar and

dan't.apy withaut any priat appravaL.