SOP for Materials Review and Procurement Procedure

To ensure that Quality Raw and Packaging Materials are made available for Production.
To ensure that the right procedures are followed during procurement.

This procedure applies to the Supply Chain & Logistics Department when procuring materials and consumables items.

  • It is the responsibility of the Supply Chain & Logistics Manager to ensure that the laid procedures are being followed fully.
  • It is also the responsibility of the personnel working in the Supply Chain & Logistics Department to ensure that Standard Operating Procedures are being followed fully.

  • Order requirements are identified during Material Review, which is conducted every month, but if need be this may be weekly or fortnightly.
  • The order requirements are then presented to the Management to decide whether to buy or not depending on the value, stock position, cash flow, lead time, etc.
  • When a decision is made from the management on what to buy, Quality Assurance Department is informed.
  • Enquiries are sent to different suppliers for offers following the Approved suppliers list. Depending on quality, quantity, price, lead time and payment terms, a decision is then made on where to buy from.
  • Orders are raised and foreign exchange control application forms are completed after a decision on where to buy from and have been made. The General Manager and Managing Director approve the orders.
  • The order copies are then distributed as follows:
  1. Pink copy attached to the Foreign Exchange Control Application Forms goes to accounts. The Original Exchange Control Application Forms goes to the bank for EC number approval.
  2. Green copy goes to Warehouse.
  3. The book copy remains in the Supply Chain & Logistics Department for reference.
  4. Suppliers are communicated soon after the Exchange Control Approvals are granted through order confirmation letters which include Original Order Copies, Exchange Control Numbers, etc.
  5. The original bank approved exchange control application forms goes to accounts and photocopies to Supply Chain and Logistics department for reference.
  • For the identification of new Suppliers, Quality Assurance Department will be informed of the requirement for the provision of specifications.
  • Supplier’s evaluation is conducted periodically and suppliers approved list is updated where necessary to ensure that standards are being maintained and followed at all times.
  • Consumables, specifications are issued by the user departments and ordering procedure is just the same as Raw & Packaging Materials.

  • Shipments are supposed to be covered by the supplier and where Suppliers fail to cover arrangements are made with the Local Insurance Brokers to ensure that the same has been covered.

  • This is done through emails, Internet, Faxes and Telephone

  • Clearing of Materials and miscellaneous items is done through external Clearing Agents, with close monitoring of the procurement department to ensure timely clearing.


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