Procurement Management System - World Credit Organization

5.2 Purchasing management system

This section introduces a sample of procurement management system for your reference. Generally speaking, if an enterprise is setting up a procurement management system for the first time, it can directly use this system, and then improve and improve it according to its actual situation in the work. If the company does not have a board of directors, the executive director or general manager may perform the duties of the board of directors in the system. If a small company does not have a supply department, the responsibilities of the supply department may be merged into the credit management department, but should not be merged into the production department. The production department has the right to evaluate the quality of goods. If this department also has the right to purchase, it is easy to generate moral hazard. In addition, the division of responsibilities between the board of directors and the general manager in the system sample should be determined according to the company's articles of association and other relevant systems and actual conditions.

Procurement management system of Zhongyong Group Co., Ltd.

1. General

1.1 In order to control procurement risks, ensure product quality, and control procurement costs, this system is formulated.

1.2 The company's board of directors, credit management department, finance department, and supply department will manage the company's procurement business in accordance with the provisions of this system.

1.3 If necessary, relevant departments can make work instructions according to this system.

1.4 The company's staff should be diligent and not cause losses to the company due to lack of responsibility.

1.5 The staff of the company shall not collude with customers, use the procurement system to seek improper benefits or encroach on corporate interests.

1.6 Regardless of the purchase amount, all purchases shall be carried out in accordance with this system.

2. Division of management responsibilities

2.1 The procurement management responsibilities of the board of directors of the company are:

a) Approve the procurement plan;

b) Approve the procurement management system;

c) Approve and approve the improvement proposal of the procurement system;

d) require the staff of credit management department, supply department and financial department to become members of the World Credit Organization [WCO];

e) The staff of the credit management department are required to have international credit practice qualifications;

f) Required to organize necessary training for personnel involved in procurement management.

2.2 The general manager's procurement management responsibilities are:

a) Implement relevant systems and requirements for approval by the board of directors;

c) Continuously put forward improvement suggestions to the board of directors regarding the suitability and defects of this system.

2.3 The procurement management responsibilities of the production department are:

a) According to the production plan, draw up the procurement plan, and then submit it to the board of directors for approval;

b) Evaluate the customer's product quality;

c) Continuously put forward suggestions for improvement of the suitability and defects of this system.

2.4 The procurement management responsibilities of the Credit Management Department are:

a) Conduct a preliminary review of the tender announcement and the risks of the procurement contract, and then submit it to the legal representative or his authorized personnel for final review and signature.

b) In case of product quality disputes, the credit management department will start the credit supervision process to require customers to correct breach of contract or dishonesty. If the supervision is invalid, entrust the credit agency to start the ICE8000 credit supervision procedure, and if it is still invalid, submit to the litigation procedure.

c) If the customer does not return the advance payment as agreed, start the debt collection procedure.

d) Immediately report to the company's board of directors or top management after receiving a complaint against the personnel of the supply department.

e) Implement credit supervision on the procurement process.

f) Continuously put forward suggestions for improvement of the suitability and defects of this system.

2.5 The procurement management responsibilities of the supply department are:

a) Receive the customer's supply application, if possible, implement the bidding.

b) Bidding announcements and contracts are submitted to the Credit Management Department for review.

c) Continuously put forward suggestions for improvement of the suitability and defects of this system.

3. Identification and control of procurement risks

3.1 For the procurement risks and preventive measures that exist in the company, see Attachment 1 "Procurement Risk Identification and Preventive Measures Table".

3.2 Procurement Risk Control Process See Attachment 2 "Procurement Risk Control Flowchart (for External Risks)" and Attachment 3 "Procurement Risk Control Flowchart (for Internal Risks)".

4. Reward and punishment measures

4.1 For the staff with better performance, the company will praise them in their personal credit files at the end of the year.

4.2 For workers who have caused losses to the company due to insufficient sense of responsibility, the company will issue warnings, demote them according to the circumstances, and record them in their personal credit files;

4.3 For those who collude with customers to seek improper benefits or embezzle the company's interests, the company will demote, dismiss, or expel them according to the circumstances, and record them in their personal credit files; if they refuse to return improper benefits or compensate the company for losses, they will be investigated by law responsibility.

5. Supplementary Provisions

5.1 The change of this system shall be approved by the board of directors. The credit management department is responsible for the interpretation of this system.

5.2 This system will come into effect on the date of issue. The signing of procurement contracts after the issuance date of this system shall be carried out according to this system. Purchasing contracts that are being implemented on the date of issuance of this system shall be subject to approval procedures within 60 days before the contract is changed or extended.

Attachment 1 "Procurement Risk Identification and Preventive Measures Form"; (note the attachment see Section 1, omitted)

Appendix 2 "Procurement Risk Control Flowchart (For External Risks)";

Appendix 3 "Procurement Risk Control Flowchart (for Internal Risks)".

Procurement management system of Zhongyong Group Co., Ltd.

The above content is excerpted from "Building an Integrity Unit - ICE8000 Integrity Management" (written by Fang Bangjian, free to use, but please indicate the source)