Purpose of the Policy
All new suppliers to our company must be reviewed and accepted in accordance with this policy to ensure that the supplier service is aligned with the our company objectives.
Procedures
Choosing a New Supplier
A new supplier must provide our company with quality product, great service, competitive pricing and efficient delivery.
For each new supplier the following information table must be completed prior to agreeing services.
Supplier Selection Background Information
- Business Name of Supplier
- Location of Supplier
- Products/Services provided by supplier
- Name of business owner/ sales representative
- How many years has the supplier been trading?
Supplier Selection Review Checklist
For each new supplier being considered the following checklist must be completed
- Is the supplier pricing competitive?
- What are the payment terms for this supplier?
- What is the return policy for this supplier?
- Does the supplier provide warranties, guarantees etc.?
- Are the suppliers representatives knowledgeable of the products/ services and industry?
- Is there an alternative to this supplier, has the alternative supplier been considered?
- What are the delivery services of the supplier?
- Has a credit check been undertaken for the supplier?
- Has the Personal Property Securities Register (PPSR). been reviewed?
- Has the supplier been trade checked?
Appointment of Supplier
The appointment of a new supplier will be authorised by CEO.
All relevant details of the supplier will be entered into the financial system by CFO once approval is obtained from CEO.
CEO will review information entered into the financial system and independently verify the bank account or other payment details of the supplier to ensure payments made are to the correct supplier.
The purchasing department will be notified within one week of the new supplier being approved.
Supplier Payment Terms
All purchases from suppliers must be supported by a purchase order – refer to the Purchasing and Stock control policy.
Payment terms for all suppliers must be reviewed by CFO every at least once a year. Following this review each supplier must be approached to seek improved payment terms by CFO.
All supplier payment terms must be a minimum of 1 year.
Any variation to the above must be authorised by CEO.
All supplier payments are to be reviewed at least once a quarter to ensure that payment terms are adhered to. For payments made to any suppliers earlier or later than the agreed terms CFO will prepare a report that details the reasons why payment terms have not been adhered to.
This report will be reviewed and authorised by CEO.