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Supplier Approval, Monitoring & Evaluation

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190 views

Supplier Approval, Monitoring & Evaluation

Uploaded by

Luke Bilis
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as DOCX, PDF, TXT or read online on Scribd
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SUPPLIER APPROVAL, MONITORING & EVALUATION

PURPOSE

The following procedure has the purpose to define the criteria to select, qualify, monitoring and
evaluate direct material suppliers to the Bigso Box of Sweden group. This procedure affects all new
suppliers of standard parts as well as suppliers of special parts utilized for customized customer
order.

A new supplier must be audited and “Approved” prior to start business with Bigso Box of Sweden.
Historical suppliers are automatically in the status of “Approved” suppliers.

SCOPE

All Bigso Box of Sweden group companies, Bigso UAB and Bigso AB.
This procedure is not applicable for the suppliers involved in the off the shelf parts, which do not
classify as critical parts.

RESPONSIBILITY

Process Owner: Chief Purchasing Officer.


The process owner is responsible to ensure the process is executed as outlined in this document.

The Quality Manager is responsible to monitoring and reporting the performance and alerts the
Chief Purchasing Officer in case of serious accidents (Safety and/or Functional), repetitive quality
issue, cross-factory quality issue by updating SMR (Supplier Monitoring Report, B/SMR-001)
document and conducting annual meeting at the beginning of each year.

PROCESS

2.
FIRST 4.
1. EVALUATION 3.
OF SAMPLES: PERFORMANCE
REQUEST OF A SUPPLIER
& PERIODICAL
NEW SUPPLIER AUDIT NEW APPROVAL
EVALUATION
SUPPLIER IF
NEEDED

Request of a new supplier

Revision Date: August 14, 2023


Edition 1
Internal Reference: B/SAME-001
Page 1 of 3
There are different situations that can lead to the need of a new Supplier, among others:
 Procurement of new materials, parts;
 Change of supplier for existing parts;
 Changes on make vs. buy policy (outsourcing);
 Significant change of the business framework for an existing supplier (relocation business).

Supplier Approval

All suppliers will be initially categorized based on the following methodology:

 MAJOR - supplier is critical or strategic to the business, requires significant effort to replace
(i.e. Paperboard, paper, glue and special process materials);
 MEDIUM – supplier is important to the business, would require some effort to replace (i.e.
low volume packaging materials, high volume distributors and altered off the shelf items );
 MINOR – supplier is not important or critical to the business, would require little effort to
replace (i.e. off the shelf item distributors, simple packaging materials).

All suppliers are picked and approved by Chief Purchasing Officer, who evaluates samples of
required materials. The evaluation takes in consideration 4 aspects:
 Product Quality;
 A general evaluation based on not measurable variables but on business judgement like:
contract and negotiation, price and condition, cooperation and customer orientation,
cooperation in complaint handling;
 Supplier punctuality (On time Delivery);
 Quality Certification.

Performance and Periodical Evaluation

Frequency of Supplier evaluation

Supplier Category Frequency


Major Every year
Medium Every 2 years
Minor Every 3 years

Revision Date: August 14, 2023


Edition 1
Internal Reference: B/SAME-001
Page 2 of 3
Supplier evaluation grading

Supplier Grading
Grade Description
Non-conformities OTD (%)
A 1 or up to 10 000Eur <95%
B < 10 000Eur / > 19 000Eur >94% / <90%
C <20 000Eur >89%

Internal review of supplier evaluation

Type of In Charge of
Frequency Data Report to
reporting Providing
Qty received
Once a Quality Purchasing
SMR* On Time Delivered (OTD)
year** Manager Manager
Non-conformities records
* File available to Quality and Purchasing Dep., Purchasing manager. Records retain: 2 years
** (Unless requested more often by Purchasing Manager)

Revision History

Date Rev.# Comments


August 14, 2023 1 Initial publication as a company procedure

Revision Date: August 14, 2023


Edition 1
Internal Reference: B/SAME-001
Page 3 of 3

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