Procurement SOPs — Field Quick Guide

📑 SOP Index – Procurement

• Vendor Creation / Vendor Master Update/Modification
• Vendor Selection – RM Concentrate
• Vendor Selection – RM Primary PI

📌 1. Vendor Creation / Vendor Master Update/Modification

• 🔧 Step 1: The Procurement team will analyze the market for new suppliers who can deliver services/products of a given requirement.
• 🔧 Step 2: Contact the supplier and obtain details like:
• a) Trade License b) TRN no. c) Bank a/c details d) Payment terms e) Details of key two contact persons (phone number, email address) etc.

📌 2. Vendor Selection – RM Concentrate

• 🔧 Step 1: Since the product is monopoly, Pepsi-Cola International (PCI) will be the single supplier of Raw Material Contrate. There is no change to this process.💻 System: Partially
• ✅ Implemented: ✔️
• 👥 Approver(s):

📌 3. Vendor Selection – RM Primary PI

• 🔧 Step 1: List of approved primary suppliers is provided by PCI. ADRC procurement can choose from the provided list of suppliers for procurement needs.
• Please Note: Any addition to add in the primary list would be initiated by PCI only.
• 💻 System: Partially

📌 4. Vendor Selection – RM Secondary / Others

• 🔧 Step 1: Any suppliers can be chosen from the market who meets ADRC's quality requirements, price and other terms of delivery.
• Please Note: The general process of selection listed in Sr#1 will be followed.
• 💻 System: Partially

📌 5. Vendor Selection - Spares Parts (Plant and Machinery)

• 🔧 Step 1: Any suppliers can be chosen from the market who meets ADRC's quality requirements, price and other terms of delivery.
• Please Note: The general process of selection listed in Sr#1 will be followed.
• 💻 System: Partially

📌 6. Vendor Selection - Marketing Equipment Maintenance

• 🔧 Step 1: Any suppliers can be chosen from the market who meets ADRC's quality requirements, price and other terms of delivery.
• Please Note: The general process of selection listed in Sr#1 will be followed.
• 💻 System: Partially

📌 7. Vendor Selection - Support Function (IT, marketing, Finance, HR)

• 🔧 Step 1: Any suppliers can be chosen from the market who meets ADRC's quality requirements, price and other terms of delivery.
• Please Note: The general process of selection listed in Sr#1 will be followed.
• 💻 System: Partially

📌 8. Comparative Analysis & Purchase Order (2 Slide)

• 🔧 Step 1: Contact the supplier(s) for quotation
• 🔧 Step 2: Document the details in the Comparative Analysis Sheet (MS Excel)
• 🔧 Step 3: Choose the most eligible supplier after considering factors like price, quality, turn around time and payment terms.

📌 8. Comparative Analysis & Purchase Order (2 Slide)

• 4) Store Supervisor will initiate all the 'Raw Material PO' after obtaining approvals and confirming the PO pricing details from the Procurement Manager. Store Supervisor will contact the vendor and send the delivery schedule (only for raw materials). All other type of PO's are handled by Procurement Team.
• 💻 System: Partially
• ✅ Implemented: ✔️

📌 9. De-activation of vendor

• 🔧 Step 1: 1) Upon analysis the vendor transaction, if Procurement Manager finds that vendor has repeatedly compromised in terms of:
• a) Quality of the product b) Terms of delivery etc.
• 🔧 Step 2: The Procurement Manager may request Account Department to De-Activate the vendor in the system.

📌 10. Vendor Evaluation

• 🔧 Step 1: Vendor evaluation will be initiated on an annual basis for the supplier with a total procurement of AED 50,000.
• 💻 System: Partially
• ✅ Implemented: ✔️

📌 11. Blocking of vendor (Proposed New)

• 🔧 Step 1: This process is not started yet as per Procurement Manager (to be included in the - 'to be processes’)
• 💻 System: Partially
• ✅ Implemented: ❌

📌 12. Vendor Master Review (Proposed New)

• 🔧 Step 1: Vendor Master trigger in the system (proposed new)
• Note: Vendor will be contacted for the updated information
• 💻 System: Partially

📌 13. Trade license expiry notification (Proposed New)

• 🔧 Step 1: This process is not started yet as per Procurement Manager (to be included in the - 'to be processes')
• 30 days and 15 days before the expiry date, on and 15 days after the due date
• Note: Vendor will be contacted for the updated information

📌 14. Trade license expiry (Proposed New)

• 🔧 Step 1: This process is not started yet as per Procurement Manager (to be included in the - 'to be processes')
• Vendor Block from Payment and creation of new PO
• Note: System Pre-set control

📌 15. Business Continuation with vendors for Trade license expiry (Proposed New)

• 🔧 Step 1: This process is not started yet as per Procurement Manager (to be included in the - 'to be processes')
• Vendor Block from Payment and creation of new PO
• 💻 System: Partially

📌 16. Vendor Reconciliation

• 🔧 Step 1: Accounts Payable Accountant will contact the vendor for Statement of Account (SOA)
• 🔧 Step 2: Reconcile the SOA provided by the Vendor with ADRC GL
• 🔧 Step 3: Investigate and rectify variance (if any).

📌 17. Vendor Payment

• 🔧 Step 1: Vendor payment process as per the 'Accounts Payable Pre-SOP Documentation' will trigger. Please refer Accounts Payable document.
• 💻 System: Partially
• ✅ Implemented: ✔️

📌 18. Vendor Advance

• 🔧 Step 1: Vendor raises Proforma Invoice as per the payment terms of the PO/Contract for an advance payment.
• 🔧 Step 2: Accounts Payable accountant will verify the Proforma Invoice and prepare an Advance Payment Request.
• 🔧 Step 3: Accounts Payable Accountant will obtain approval of Senior Accountant, Procurement Manager and Finance Manager on the advance payment request.