[Full Client Name Reg Caps]

Procedure: [Purchasing Proc. Title]

Rev. [Rev Number]

Procedure: [Purchasing Proc. Title]

1.0 SUMMARY
1.1. This procedure defines the requirements for evaluation and selection of critical suppliers,
purchasing critical materials and services, and monitoring supplier performance.
1.2. The receipt and receiving inspection of incoming purchased items is defined in the procedure
[Receiving Proc. Title].
1.3. “Critical materials or services” are those materials or services which are incorporated into final
product, or which have a direct impact on the company’s product or quality system, or which
are otherwise deemed as critical by management.
1.4. Office supplies, administrative consumables, furniture, etc. are not critical materials, and
therefore not subject to this procedure.
1.5. [Short Client Name] understands it is responsible for the conformity of all products purchased
from suppliers, including product from sources defined by the customer.
1.6. The [who?] is responsible for implementation and management of this procedure.
2.0 REVISION AND APPROVAL
Rev. Date Nature of Changes Approved By
[Rev [Procedure
[Date of Issue] Original issue.
Number] Approver Name]

3.0 SUPPLIER EVALUATION, SELECTION AND CONTROL

3.1. The [who?] evaluates new suppliers. This person/these individuals has/have both the
responsibility and authority to approve and disapprove suppliers.
3.2. New suppliers are evaluated in accordance with the following criteria:
• Modify this list as needed
• Pricing
• Availability
• Reputation / references
• Location
• Shipping terms and capabilities
• Quality system certification status (ISO 9001 certification preferred)
• Quality of samples received (incl. testing results)

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Procedure: [Purchasing Proc. Title]
Rev. [Rev Number]

• On-site audit results

• Telephone interview results
• Written survey results
• Customer mandate
• Sole source / OEM status
3.3. Where a customer mandates a special process source, both [Short Client Name] and any
suppliers must use the required supplier; this usage may override [Short Client Name]’s approval
status rules.
3.4. In some cases a formal risk assessment may be conducted as part of the evaluation and
selection of a potential supplier, or in order to determine if a problematic supplier should be
retained; see [Risk Management Proc. Title].
[Use this next section if the ASL is a spreadsheet, database or document – NOT if the ASL is part
of an ERP system.]
3.5. The [who?] will maintain an Approved Supplier List (modify name if needed) which lists all
evaluated and approved suppliers, and their approval status.
3.6. Suppliers who meet any of the evaluation criteria, in the judgment of the person conducting the
evaluation, may then be entered into the purchasing system and items may be purchased.
However, the supplier is entered into the Approved Supplier List (ASL) on a CONDITIONAL basis,
pending inspection or review of products or services rendered.
3.7. Upon successful receipt or review of products or services, the manager may then advance the
supplier’s status to APPROVED.
3.8. If the results of review of product or service received are insufficient or otherwise lacking, the
buyer may then elect to change the supplier’s status to DISAPPROVED, or to leave it at
CONDITIONAL until further orders are received and reviewed.
3.9. A supplier may also be listed as RESTRICTED, where certain purchasing restrictions are placed on
the supplier. This may be useful to limit what products may be purchased from a supplier, or to
place other conditions.
3.10. The Approved Supplier List indicates the supplier, location, approval status (Approved,
Conditional, Disapproved, Restricted), and the scope of approval (typically commodity type or
product family). Re-approval of suppliers is continual and ongoing based on the suppliers ability
to meet the criteria of paragraph 3.2. For Restricted status, a note of the restriction must also
be included.
3.11. Suppliers used for at least six months prior to [Date of Issue], have been grandfathered into the
system as Approved, provided they have no outstanding quality issues on record, and only upon
the decision by [who?] to do so.
[Use this next section if the ASL is part of the ERP system]

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Procedure: [Purchasing Proc. Title]
Rev. [Rev Number]

3.12. For parts entered into the ERP system, this system will list approved suppliers for the individual
part, along with secondary choices of approved suppliers, if applicable.
3.13. In such cases, Purchasing will use this information to select the appropriate supplier.
3.14. Add details on specific ERP system here; for example, how the system lists suppliers,
commodities, ratings, etc.
3.15. Purchasing from suppliers is then carried out in accordance with section 4 below.
3.16. Verification of purchased product is carried out in accordance with the [Receiving Proc. Title]
procedure.
3.17. Supplier performance is monitored on the basis of the quality of items received. Enter details on
how this is logged, trended and reported. For active suppliers, this activity acts as a continuous
re-evaluation of the supplier, with the receipt of every purchased item or service.
3.18. During periodic Management Review meetings, supplier performance is reported to top
management, in accordance with the procedure [Management Review Proc. Title]. This
periodic activity also consists of secondary re-evaluation of suppliers.
4.0 PURCHASING
4.1. (If a Requisition Form is not used, edit this accordingly.) In order to purchase critical materials or
items, an employee will submit a Requisition Form to Purchasing. This form must be approved
by an appropriate manager, in accordance with the following approval authorities, based on
dollar value of the purchase:
EDIT PURCHASING AUTHORITY TABLE HERE.
Position Authorization Value ($)

4.2. If the requestor has indicated a preferred supplier, Purchasing will ensure the supplier has been
approved in accordance with the section above; if the proposed supplier is not approved,
Purchasing will either use an approved supplier, or contact the requestor and resolve the issue.
4.3. Purchasing may purchase items directly, without a Requisition Form.
4.4. For some purchases, Purchasing may elect to submit competitive requests for quotes from
potential suppliers before making a purchase.
4.5. Purchases may only be made using APPROVED suppliers. Purchases from RESTRICTED suppliers
must be made in accordance with the restrictions noted in the ASL/ERP.
4.6. If a new supplier is to be used, a CONDITIONAL supplier may be used, in accordance with the
conditions noted in the ASL/ERP.
4.7. Purchasing shall then generate a Purchase Order (PO) to the supplier.

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Procedure: [Purchasing Proc. Title]
Rev. [Rev Number]

4.8. Each PO must contain the following information at a minimum:

• Items to be ordered, identified clearly (typically to include catalog number, part number,
etc.)
• Date of delivery desired
• Quantity
• Pricing
4.9. In addition, the following information shall be included on the PO if applicable:
• requirements for approval of product, procedures, processes and equipment
• requirements for qualification of personnel
• quality management system requirements
• the identification and revision status of specifications, drawings, process requirements,
inspection/verification instructions and other relevant technical data
• requirements for design, test, inspection, verification (including production process
verification), use of statistical techniques for product acceptance, and related
instructions for acceptance by the organization, and as applicable critical items including
key characteristics
• requirements for test specimens (e.g., production method, number, storage conditions)
for design approval, inspection/verification, investigation or auditing
• requirements regarding the need for the supplier to:
• notify the organization of nonconforming product
• obtain organization approval for nonconforming product disposition
• notify the organization of changes in product and/or process, changes of suppliers,
changes of manufacturing facility location and, where required, obtain organization
approval
• flow down to the supply chain the applicable requirements including customer
requirements
• records retention requirements
• right of access by the organization, their customer and regulatory authorities to the
applicable areas of all facilities, at any level of the supply chain, involved in the order and
to all applicable records
4.10. The PO shall be reviewed and approved before release to the supplier by [who?].
4.11. A copy of the PO shall then be sent to Receiving to await receipt of the items.
5.0 PROCEDURE: SUPPLIER CORRECTIVE ACTION REQUESTS

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Procedure: [Purchasing Proc. Title]
Rev. [Rev Number]

5.1. The [who?] maintains a system of Supplier Corrective Action Requests, or SCARs. This allows for
the flow down of corrective action requirements to a supplier when a supplier is found to be
responsible for a particular nonconformity.
5.2. Any purchasing agent or manager may submit a SCAR Form to a supplier that has shown quality
problems or the potential for nonconformity.
5.3. SCARs are routed to the supplier’s representative for root cause analysis and action planning.
5.4. Failure of a supplier to respond to a SCAR, or to respond with an insufficient action plan, may
mean adjustment in that supplier’s evaluation standing.

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