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A. Cost Practices (CP)

CP1: The purchasing department is actively involved in evaluating and redesigning its own processes in order to reduce costs and efforts.

CP2: The purchasing department is actively involved in redesigning its own processes in order to better fit with suppliers’ processes.

CP3: Your purchase IT system has a search facility to help identify the item you wish to purchase, e.g. based on keywords.

CP4: Your purchase IT system has automatic filling-in of items on the purchase order. For example, entering the required item number might automatically identify the supplier, and enter the suppliers’ details on the order.

CP5: Your purchase IT system has an automatic issue of an order by fax or e-mail. Once the order is approved, the computer should be able to send it to the supplier electronically without the need to print off a hardcopy and send it by post.

CP6: For non-high value, low risk purchased item, your purchasing procedures are not to inspect purchased item.

CP7: For certain items, once a contract is signed, end-users, appropriately authorized, can identify the items they need from the contract and communicate their requirements directly to the suppliers. Accordingly, there is no need for them to seek approval from purchasing or from anyone else before doing so.

CP8: Your organization nominates staff within your company (these could be both buyers and end-users) to be issued purchasing cards. These can have an upper limit on individual transactions and on total expenditure per month.

CP9: When purchasing a certain item, Your purchasing procedures allow you to set up an account with a supplier that allows you to make purchases via the suppliers’ Internet website.

CP10: Your suppliers can issue consolidated billing in order to reduce the frequency of invoices, thus reducing the amount of time and effort involved in processing these invoices and making payment.

CP11: Before making a purchase, you use benchmarking data to compare prices.

CP12: The purchasing department is actively involved in value analysis/ engineering processes with suppliers to achieve savings from design optimizations.

CP13: Your organization agrees with suppliers to work jointly on total cost reduction initiatives.

B. Quality Practices (QP)

QP1: Purchasing management is actively involved in activities to promote quality in the company.

QP2: Purchasing management communicates to purchasing personnel that quality is the most important goal.

QP3: Performance evaluation for purchasing management is based on quality performance (materials purchased defects rate, degree of internal customer satisfaction).

QP4: Quality is the most important criterion in the selection and evaluation of suppliers.