GAE POWER SOLUTIONS LIMITED

ISO 9001:2015, ISO 14001:2015, ISO 45001:2018, Revision No. Issue No.
Standard:
ISO 31000:2018, ISO 26000:2010 & 50001:2018 00 01
Date of Revision: Date of Issue:
Title: Procurement & Supplier Management
- 01-07-2022
Document No: GAE-PR-011 Page 1 of 5

Procedure
Procurement & Supplier Management
In Compliance with applicable ISO Standard(s)

Copyright
This document contains confidential information. It may be copied in full or in parts only by
authorized GAE personnel and only for the purpose of GAE related activities. Disclosure of any
information contained within this Standard Operating Procedure to any person(s) other than
employee of GAE without written permission of the CEO and/or COO is strictly prohibited.

Prepared by: Muhammad Baber Khan SIGNATURE: __________________

(Operation Manager)

Reviewed by: Ubaid Ammanulah SIGNATURE: __________________

(PROCUREMENT OFFICER)

Approved by: Danish Iqbal SIGNATURE: __________________

(CEO)

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 GAE POWER SOLUTIONS LIMITED
ISO 9001:2015, ISO 14001:2015, ISO 45001:2018, Revision No. Issue No.
Standard:
ISO 31000:2018, ISO 26000:2010 & 50001:2018 00 01
Date of Revision: Date of Issue:
Title: Procurement & Supplier Management
- 01-07-2022
Document No: GAE-PR-011 Page 2 of 5

DOCUMENT CHANGE RECORD

Revision Date of Page
Initiated By Section Description of Changes Done By
No# Revision No.

TABLE OF CONTENTS
Serial
Description of Changes Page No#
No#
1 PURPOSE 3
2 SCOPE 3
3 RESPONSIBILITY 3
4 DEFINITION 3
5 PROCEDURE 3
6 RELATED RECORDS 5

Distribution List:
1) CEO
2) COO
3) Procurement Officer
4) Operation Manager

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 GAE POWER SOLUTIONS LIMITED
ISO 9001:2015, ISO 14001:2015, ISO 45001:2018, Revision No. Issue No.
Standard:
ISO 31000:2018, ISO 26000:2010 & 50001:2018 00 01
Date of Revision: Date of Issue:
Title: Procurement & Supplier Management
- 01-07-2022
Document No: GAE-PR-011 Page 3 of 5

1. PURPOSE:
To provide a system for:
a) Pre-qualification and registration of external providers.
b) Continual evaluation and performance monitoring.
c) Control of purchase documents.
d) Verification of purchase product.

2. SCOPE:
This procedure is applicable to all purchases (that effects the quality of our service) and external
providers.

3. RESPONSIBILITIES:
3.1 Procurement Department is responsible for selection, pre-qualification and registration of
external providers.

3.2 Operation Manager / Procurement Officer ensures continual evaluation and performance
monitoring of approved external providers.

3.3 The Procurement Department is responsible for arranging purchase at GAE Power Solutions
Limited as per requirement.

4. DEFINITIONS:
a) External Providers: A party that supplies goods or services.

b) Assessment: The action of assessing someone or something.

c) Degrading Causing a loss of self-respect.

5. PROCEDURE:
5.1 Company Purchases:
Company purchases related to the service include the following:

a) Machine Components/Parts/Equipment
b) Testing & Certification Services
c) General Item
d) Work Scope related purchase etc.

CONTROLLED DOCUMENT
 GAE POWER SOLUTIONS LIMITED
ISO 9001:2015, ISO 14001:2015, ISO 45001:2018, Revision No. Issue No.
Standard:
ISO 31000:2018, ISO 26000:2010 & 50001:2018 00 01
Date of Revision: Date of Issue:
Title: Procurement & Supplier Management
- 01-07-2022
Document No: GAE-PR-011 Page 4 of 5

5.2 Initial Assessment of External Providers:

The aim of assessment is to ensure that the external provider has the capability to supply
products and services that fully meet the requirements of the company.

5.3 New External Providers:

New external providers are initially selected based on the following factors:
a) Market reputation, experience and reference of other customer,
b) Credit facilities,
c) Price,
d) Quality

The information is gathered about their reputation, capabilities and experience from references.
When needed, a meeting / visit arranged with the external providers (if needed). The
Procurement Department maintains close correspondence, after approval, Procurement Officer
integrates the external providers in the List of Approved External Providers.

5.4 Purchasing Data:

All Purchases shall be made through a Purchase Order form clearly identifying External
Provider’s Name, Item Description, rate, quantity and amount. Procurement Officer negotiates
with approved external providers regarding rates, payment terms and delivery terms etc. All
Purchases shall be duly approved by the Procurement Officer.

5.5 Emergency Purchase:

Whenever any item is urgently needed and is not available in stores, relevant personnel inform
Procurement Officer to arrange the items on an emergency basis from local market. Then
Procurement Officer arranges the item/items locally.

After procurement, the item/items are directly handed over to the requesting person to avoid
any stoppage of service. Then after, the whole procedural documents are formally filled and
signed by the relevant authorities.

CONTROLLED DOCUMENT
 GAE POWER SOLUTIONS LIMITED
ISO 9001:2015, ISO 14001:2015, ISO 45001:2018, Revision No. Issue No.
Standard:
ISO 31000:2018, ISO 26000:2010 & 50001:2018 00 01
Date of Revision: Date of Issue:
Title: Procurement & Supplier Management
- 01-07-2022
Document No: GAE-PR-011 Page 5 of 5

5.6 Verification of Purchased Product:

Procurement Department has established and implemented the mechanism of inspecting all
incoming purchased items and records their comments on Goods Receiving Note. Custodian of
the Product/Service and Procurement Officer will verify the purchased product conformance on
arrival of the procured material. In case the procured material is found to be nonconforming,
the Procurement Department takes the further decision to return to external providers, use as
is or to scrap. Results of verification of the product and services are used to update the external
providers rating and decision for the development of new external providers is taken
accordingly.

5.7 External Providers Performance Monitoring Report:

Existing external providers shall be assessed after a period of twelve months and the results of
the assessment shall be recorded on the External Providers Re-Evaluation Form.

5.8 Degrading of the External Providers:

The following may be the basis for black listing or degrading the external providers.

a) Submit incorrect quotation / statement against the required specification and does not
stand on their statement.
b) Unnecessary delays in providing services / materials causing continuous hindrance in the
company’s operations and affecting client satisfaction.
c) Providing substandard / non-conforming material / services continuously.
If an external provider is found defaulter on above accounts, respective approving authority
will immediately warn the external providers. If the external providers do not response /
rectifies / replace within the stipulated time, it may be degraded or black listed.

6. RELATED RECORDS:
1) Purchase Order (GAE-FM-011-01-00)
2) External Providers Assessment Form (GAE-FM-011-02-00)
3) Approved External Providers List (GAE-FM-011-03-00)
4) External Providers Re-Evaluation Form (GAE-FM-011-04-00)

THE END………........................

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