Issue No. (4) Rev.

(0)
Purchasing Procedure Date: 15/04/2013
PSC-OP-7.4
Page 2 of 3

Purpose and Scope

The Purpose of this procedure is to establish a system to control the purchasing process and the
control of company suppliers and subcontractors and their evaluations as well within the organization.

1. Procedures
1.1. The Needs Request form no. (F-01/PSC-OP-7.4) is issued whenever any department requests
any kind of items which is checked by the storekeeper for the availability of the requested
items at the warehouse.
1.2. If the requested items are not found at the warehouse, the storekeeper issues the Purchasing
Requisition form no. (F-02/PSC-OP-7.4) reviewed by department head for its adequacy
obtaining the approval of the factory manager or construction head.
1.3. Afterwards the Purchasing requisition is sent to the Purchasing department where the
requisition contents shall be entered to the computer to proceed in purchasing the requested
items.
1.4. Purchasing coordinator issues the Purchase Order (PO) form no. (F-04/PSC-OP-7.4) to the
selected supplier ( If required or for purchasing through the mail) stating all the data related to
the items as well as any general or special conditions and requirements and any kind of
documents to be supplied with the material, also any penalties for the delay through the
supply process approved by the Managing Director.
1.5. Purchaser is responsible for requesting the quotations from the company approved suppliers’
according to the quality and delivery requirements stated in the requisition, where the
purchasing department must collect at least 3 offers from the suppliers.
1.6. For rule of obtaining 3 offers prior each purchasing process, it has an exception in case of sole
agents and vendors - and clients’ recommended vendors-, or for purchase orders whose values
do not exceed 3000 L.E. unless for materials whose criticality identified by the project/site
manager.
1.7. Afterwards all the collected quotations are listed in Quotations Evaluation Sheets form no. (F-
03/PSC-OP-7.4) comparing all the quotations together and selecting the best offer and stating
the justification of the best offer from the best quality to the cheapest price with good
payment and delivery conditions approved by the purchasing head.
1.8. The coordination between the purchasing department and the suppliers has to be established
in the form of follow-up of the required material to insure the delivery time regarding the
items delivery dates where the (site or project)/factory manager shall be updated with these
co-ordinations results.
1.9. Any delay of the material if occurred to be checked with the dept. who requested it to see the
impact of this delay also any discrepancy in the received material.
1.10. As soon as the inspection status of the required material is accepted, the invoice of the
material to be issued to the account dept. to start preparing the payment for the supplier.
1.11. Verification at subcontractor’s premises is done by the company representative for some
items, according to what specified in PO, however, in some cases according to contracts
agreements the customer can verify that subcontractor’s products are satisfied
1.12. The suppliers/subcontractors selection criteria have to be based upon their experiences and
specialization in the requested material where the acceptance criteria will include but not
limited to:
 The market share and other jobs with a company,
 Issue No. (4) Rev. (0)
Purchasing Procedure Date: 15/04/2013
PSC-OP-7.4
Page 3 of 3

 The part experience, commercial record and financial status,

 Supply of materials with their mill certificates,
 Accepted to return back the rejected materials by QC dept.
1.13. Purchasing head shall list all the company selected supplier and subcontractors in the
Approved supplier’s list form no.(F-05/PSC-OP-7.4) which shall be approved by the
Managing Director and to be subjected to an update at least once a year.
1.14. Each of the company suppliers is being evaluated every 3 months in the Supplier Evaluation
form no. (F-06/PSC-OP-7.4)
1.15. Evaluation of subcontractors is performed on site by project / Site manager according the
following Criteria :
 Time schedule commitment contract and specification commitment manpower and
equipment performance
 Environmental and Safety rules commitment
 Quality of work
Using subcontractor evaluation form no. (F-07/PSC-OP-7.4) which is sent to project/site
manager and submitted back to the Purchasing department which shall be done at least once
during dealing with the subcontractor per each PO or frame agreement.
1.16. Any observation, non-conformity, discrepancy in the supply process shall be taken into
consideration during the supplier/subcontractors evaluations.
1.17. The overall aggregated evaluations results shall be documented on the
Suppliers/subcontractors Aggregated Evaluations form no. (F-08/PSC-OP-7.4) at the end of
each year where a copy shall be submitted to the QA to perform the data analysis on the
performance of company suppliers and sub-contractors in the management review meeting.
1.18. The results of the evaluations will be used to prepare the next year list of approved supplier
and sub-contractors according to the suppliers grades, in which whom obtained 80% or more
will continue as a company supplier, and for those who obtained 80% to 70% shall be warned
due to their low marks and shall be suspended if they obtained it twice successively,
suspended suppliers from being dealt with the company are those who obtained less than
70%.

2. Forms
2.1. Needs Request (F-01/PSC-OP-7.4)
2.2. Purchasing Requisition (F-02/PSC-OP-7.4)
2.3. Quotations Evaluation Sheet (F-03/PSC-OP-7.4)
2.4. Purchase Order (F-04/PSC-OP-7.4)
2.5. Approved List of subcontractors/Suppliers (F-05/PSC-OP-7.4)
2.6. Supplier Evaluation (F-06/PSC-OP-7.4)
2.7. Subcontractor Evaluation (F-07/PSC-OP-7.4)
2.8. Suppliers/subcontractors Aggregated Evaluations (F-08/PSC-OP-7.4)