Supplier selection & Evaluation Process

 

Supplier selection & Evaluation Process 

Supplier plays pivotal roles in garments industry to manufacturing the goods.This process helps us to monitor & evaluate the surlier or sub contractor factory. There are catalogue no of reason so as o stand up in favor of this topic.Before going to sourcing of raw materials or goods we have to evaluate otherwise we can not get quality product from the supplier.  I would like to prefer in order to depict that i am in favor of this topic.

                                       

21.0 Purpose: To ensure that Suppliers are selected on the basis of their capability to meet the requirements of Babylon Group and therefore evaluated and controlled properly.

21.1 scope: This procedure is applicable to the selection and periodic assessment of Suppliers who supply raw, packaging, machinery, equipment and other locally available materials to Babylon Group.

21.2 DEFINITION:

Supplier/Vendor: Person or organization, which has the potential of supplying materials for use by Babylon Group.

21.3 Responsibility:

It shall be the joint responsibility of Purchasing, Production, and Quality Assurance participates in the selection & evaluation of any supplier/Indenter. Director (Commercial), AGM (Export), Manager (Commercial) is responsible for selection of Suppliers for local & foreign purchase.

General Manager (Production), Quality Manager (Export), Manager (HR & Compliance) responsible to verify ethical standard and Store are responsible to verify quality of Supplier’s products.

21.4 Procedure   : Supplier/Vendor Selection:

Babylon Group shall purchase raw and packaging materials and other items through both local & foreign Suppliers. The need for a new Supplier can be determined by Quality Assurance. Production, Maintenance, Compliance and purchasing Department. New Supplier shall be selected on the basis of their experience and ability to supply quality products, price of products supplied and delivery.

Selection Procedures of Local Suppliers/Vendors:

Manager (Commercial) or authorized nominee shall select local Suppliers on the basis of their past experience, quality of products supplied, their prices and delivery. For selecting new local Suppliers, Manager (Commercial) authorized nominee shall verify the specifications of the to-be-purchased materials, samples (as appropriate) and compare with the existing specifications. In case of local suppliers having manufacturing facilities. The facilities shall be audited (if needed) before selecting them as approved suppliers. If the specifications of the products or materials are found to be satisfactory. Manager (Commercial) shall then ask the to-be-suppliers to submit prices for comparison with current prices of other Suppliers. If the prices are found within acceptable limits and test sample are acceptable, then he will recommend the supplier(s) to Director for inclusion of the name in the approved Suppliers List (ASL) of local Suppliers. After getting approval from Director (Commercial), GM (Production), Manager (Commercial) shall then enlist the Suppliers in the Lists of Approved suppliers list (ASL). The ASL may be categorized item-wise.

Selection procedures for Foreign Suppliers/Vendors:

After a prospective foreign Supplier or Indenter is identified as a possible source of a material, Manager (Commercial) shall ask the prospective Supplier for supplying

Documentary evidence that may prove to be a good supplier subject to satisfactory

Survey report about past experience, Manager (Commercial) shall ask the prospective suppliers or their local representatives/indenter to submit samples of raw and other materials with their product specifications, certificates of quality test etc.

In case of new raw materials and new supplier, Quality Assurance, Production Dept. shall verify the quality of the supplier’s products by detailed test and analysis and submit report to Manager (Commercial) shall ask the prospective suppliers of their local representatives/indenter to submit samples of raw and other materials with their product specifications, certificates of quality test etc.

Request for quote shall clearly indicate the detailed specifications of materials of

Products. Their quantities, source of origin, name of manufacturers and suppliers. Name of local indenters/representatives and delivery schedule. If the specification and quality of the product are acceptable, quotation is competitive and the price is well within the range, the Suppliers might be provisionally selected. Later on after successful shipment and acceptance of a particular consignment of raw materials and machinery parts for the plant; the supplier will be placed in the approved suppliers list (ASL) of overseas Suppliers provided other selection criteria are met. At times depending on urgency and circumstances, the director may use his Discretion to enlist name of any overseas supplier provisionally pending its performance and subsequent placement in the ASL.

Selection of Suppler/Vendors for a particular Import Order:

First of all Manager (Commercial) will ask the Supplier/indenters of ASL to supply pre-purchase-samples with their specifications, quality test report/certificates. Subject to satisfactory quality report by Babylon Group of QA, Production Dept. the Suppliers shall be requested to quote in bulk quantity. Depending on the price and terms and conditions of delivery, the director shall approve one or more suppliers for importing a particular batch or consignment of raw materials, equipment, machinery parts or other importable items. after the selection of Supplier(s) Manager (Commercial) will start processing to open letter(s) of Credit. After the shipment and arrival of the consignments(s) at the port. Subsequent clearance will be made and samples will be sent again for quality testing by Babylon Group QA, Production Dept.

At the end of the month upon receipt of the satisfactory quality report from quality assurance dept. or from the material receives register (As mention in maintained by Store dept. be used `Supplier History Form’ will be filled by the Head/Executive of Purchase Dept.

Comparative Performance study of Local Supplier/Vendors:

Executive (Purchase) shall maintain `Supplier History Form for all local and foreign suppliers. This from shall be updated once a supply is received from supplier. Summarizing all Supplier History Forms. Manager (Commercial) will evaluate the local and foreign suppliers once in every year. Following system shall be used to evaluate the suppliers of Babylon Group.

Manager (Commercial) will fill up the Supplier Evaluation Form based on the respective supplier History Form. Evaluation will be done material wise and in the following four categories.

Quality: Good Satisfactory Unsatisfactory Delivery Prompt Satisfactory Unsatisfactory

Price Highly Comparative Reasonable High to be on the ASL, a supplier should have at least “Satisfactory” in the `Quality’ and `Delivery’ category and “Reasonable” in ‘Price’ category.

Based on the overall performance of the supplier, Manager (Commercial) will write comments/recommendation on the Supplier Evaluation Form. Director shall be responsible to approve the Supplier Evaluation Form. Only the approved Suppliers List (ASL) An Evaluation Form will be used for a particular suppler to evaluate its last one-year performance. Manager (Commercial) will update the approved Supplier List (ASL) based on the evaluation form of each supplier. Purchasing will be carried out from the ASL. However purchasing could be done from other Suppliers, which aren’t in the ASL with prior approval from Director.

SUPPLIER EVALUATION FORM

Name of Supplier :

Date of Evaluation :

Address :

Quality
Price
Delivery
Ethical standard

LEGENDS:

Quality : Good (5), Satisfactory (4), Unsatisfactory (3)

Price : Highly Competitive (5), Reasonable (4)

Delivery : Prompt (5), Satisfactory (4), Unsatisfactory (3)

Ethical Standard: Good (5), Satisfactory (4), Unsatisfactory (3)

Status : Excellent (14-15), Good (11-13), Satisfactory (10), Unsatisfactory (Below 10)

Comments/Recommendation:

B Sc in textile CU ,Ms in environmental science, JU