Template and Writing Format Document No. Effective Date Revision Date Revision No. Page No.

Approval: 1 01/07/2007 01/01/2008 1.0 1/4

Ordering Maintenance, Repair and Operation Supplies

1.0

Purpose
This procedure establishes guidelines for business process by which employees can request the purchase of maintenance, repair and operating (MRO) supplies directly from the purchasing department. The process begins with the purchase requisition being completed; the process ends with the payment of an invoice.

2.0

Revision History

Date

Rev Change
New procedure drafted Purchasing Director Title has been changed to Purchasing Department Executive due to a promotion Purchasing Assistant title has been changed to Purchasing Administrator

Reference Section(s)
Not Applicable 6.1, 7.1 6.3, 7.2.1

06/04/01 1.0 05/10/01 1.2

3.0

Persons Affected
Australian Purchasing Departments 3.1 All Employees who are authorized in advance from their management to make purchase requests 3.2 Purchasing managers, purchasing assistants, buyers and clerks 3.3 Receiving clerks, inspectors and accounting clerks 3.4 Exclusion Statement: All departments outside of Australia are specifically excluded from this procedure

Ordering Maintenance, Repair and Operation Supplies

Document No. Effective Date Revision Date Revision No. Page No. Approval:

1 01/07/2007 01/01/2008 1.0 2/4

4.0

Policy
The policy of ABC Shoes Pty Ltd is to ensure: 4.1 The purchasing department is the only department that is authorised to engage suppliers and obligate funds through purchase orders and contracts. 4.2 The purchase requisition form is the only document that will be accepted by the purchasing department for the procurement of MRO supply items. 4.3 Personal items are not to be purchased on company premises or received by the company through the receiving department or any other entrance to the company.

5.0

Definitions
5.1 Maintenance, Repair and Operating (MRO) Supply Items Expensed materials used by employees to help them perform their jobs. These materials include, but are not limited to, small tools, cleaning supplies, office supplies and a variety of other consumable items that are not for resale, not for production purposes and cost less than $500. 5.2 Purchase Requisition (PR). This document is a three-part, pre-numbered form used by employees to request the purchase of materials or services by the purchasing department. The purchase requisition is the key document authorizing the purchasing department to buy specific materials, parts, supplies, equipment and services. A purchase requisition describes what is to be purchased, provides a record of the purchase and approves the commitment of funds. Completion of the purchase requisition alone does not constitute placing an order. Refer to Appendix A for a sample form and form instructions. 5.3 Request for Quotation (RFQ) This document is a three-part, pre-numbered form used by the purchasing department to request bids from suppliers. A request for quotation is a means for inviting bids from prospective suppliers. This form is the buyers first official contact with possible suppliers. The quality and content of the RFQ can determine the outcome of the bidding process because it sets the stage for discussions and negotiations. Refer to Appendix B for a sample from and form instructions.

Ordering Maintenance, Repair and Operation Supplies

Document No. Effective Date Revision Date Revision No. Page No. Approval:

1 01/07/2007 01/01/2008 1.0 3/4

6.0

Responsibilities
6.1 The purchasing Department Director is responsible for ensuring compliance to this procedure. 6.2 Employees are expected to select the current purchase requisition and adhere to the guidelines of this procedure when requesting MRO supply items. 6.3 The purchasing assistant shall review all incoming purchase requisitions to ensure they are completed in accordance with current purchasing policies and procedures. 6.4 The purchasing manager shall review those purchase requisitions received from the purchasing assistant.

7.0

Procedures
7.1Any authorized employee can create a purchase requisition to purchase Maintenance, Repair and Operating (MRO) supply items in accordance with the requirements referenced in this procedure. 7.1.1 The employee should normally view several catalogues or past department orders to get an estimate of the total order value of the items being requested on the purchase requisition. The research will aid the employee and his/her management in deciding if the items being requested are a useful purchase for the department. 7.1.2 The employee shall obtain the latest version of the purchase requisition form from the forms stock or designated location for the forms inventory. 7.1.3 The employee should complete the purchase requisition and forward it to his/her manager for approval. Upon approval, the employee should forward the purchase requisition to the accounting department for budget and signature approval. 7.1.4 When the accounting department returns the purchase requisition to the employee, the purchase requisition can be mailed, hand-carried or axed to the purchasing department for order placement. Emails and electronic signatures are unacceptable.

Ordering Maintenance, Repair and Operation Supplies

Document No. Effective Date Revision Date Revision No. Page No. Approval:

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7.2 A purchasing assistant will review all incoming purchase requisitions to ensure compliance with the guidelines contained in this procedure. 7.2.1 The purchasing assistant will ensure that the department and accounting signatures are correct and that all fields on the purchase requisition have been properly completed in accordance with the form instructions included at the end of this procedure 7.2.2 Upon approval, the purchasing assistant will initial the purchase requisition at the bottom right hand corner and forward it to the appropriate purchasing manager for review, approval, and assignment of an MRO buyer. In the infrequent case that the purchase requisition (PR) is disapproved, the purchasing assistant will make two attempts to contact the employee. If the employee cannot be reached, or if the problem cannot be resolved over the telephone or with email, then the PR will be returned to the employee for correction. 7.3 Upon Receipt of a copy of the purchase order, a clerical person within the receiving department will copy the purchase order onto a pre-collated, four-part set of coloured paper to produce a Receiver. This document will be used to receive and acknowledge the receipt of supply items. 7.3.1 The Receiver is filed in the receiving department with the applicable PO copy 7.3.2 Upon receipt of the items ordered, the receiving department will match the order received to the packing sheet provided by the supplier and to the Receiver. The receiving information is recorded on the Receiver and discrepancies are noted. Depending on the terms and conditions of the purchase order, the inspection department might get involved with the order. If the order passes inspection, the order is forwarded to the requesting employee and the order is distributed as follows: 7.3.2.1 Copy 1 is forwarded to the applicable buyer. 7.3.2.2 Copies 2 and 3 are forwarded to the accounting department. 7.3.2.3 Copy 4 is retained by the receiving department.