Practical Process of RMG Industry

Nominated Supplier Approval Process for Apparel Industry

Nominated Supplier Approval Process


As far as possible Auto Fashions Ltd.(LFL) shall work with an enlisted supplier approval process based to ensure maximum buying benefit for the entity. The concern procurement department shall maintain a file with updated information and concrete database in this regard. Following criteria shall be considered while selecting for Enlistment.

Non Nominated Supplier:

  • Details analysis of the product range / machinery infrastructure to evaluate the capacity / lead-time of the concerned supplier.
  • Visit the supplier facility with merchandiser / finance to set the initial heads up / payment procedure and the plant overall / general safety measures as well as compliance status.
  • Review the past history of the supplier in terms of the other clients they are dealing with.
  • Emphasis on the internal quality checking procedure / if any loopholes immediately implement the advisable system.
  • Make them aware of the ownership responsibility if any deviation in terms of quality / delivery. Thanks
  • Effectiveness for implementing corrective action plan (CAP) in case of complains.
  • Renewal of the all sort of certificate in 2 years interval. Need to make sure of the same.
  • After taking the positive joint decisions we are agreed to place the order to the supplier.
  • Requisition rcvd from merchandiser with all the relevant details.
  • Asked for the sample from supplier with specified parameters.
  • Sample provided by the supplier.
  • Sample will be checked by the merchants and getting feedback on the same.
  • Approval rcvd from merchants;If not approved need to resubmit again.Placing the order with po / delivery schedule.
  •  Supplier feedback on the delivery schedule.
  • Continue follow up/ tracking the po with supplier for avoids any delay in delivery.
  • Delivery rcvd in fly >>>>>> All the delivery challan has to verified by the store and put a Auto chop for well rcvd >>>> purchase dept will provide all the challan copy with store seal to account for the payment.
  • Checking the quantity /quality by the gate / store QA to and confirm all ok >>>>>> If not found ok we need to inform supplier and replacement has been done.
  • Store provided bulk sample to merchants… sent for testing… rcvd report.
  • Sample approved for production and issue to line from store.

Nominated Supplier:

Since buyer has assessed the supplier and nominates it thus we respect buyer and accept the supplier as our approved Supplier.
  • Requisition rcvd from merchandiser with all the relevant details like specifications / input date / etc
  • Approval rcvd from merchandiser >>>>>>> If not approved need to resubmit again. We will communicate with supplier with corrections details.
  • Placing the order with po with item / delivery schedule.
  • Supplier feedback on the delivery schedule.
  • Continue follow up / tracking the po with supplier for avoids any delay in delivery.
  • Delivery rcvd in facility >>>>>>All the delivery challan has to verified by the store and put a Auto chop for well rcvd by store >>>>>Purchase dept will provide all the challan copy with store seal to account for the payment.
  • Checking the quantity / quality by the gate / store QA to and confirm all ok >>>>>>if not found ok we need to inform supplier and replacement has been done.
  • Store provided bulk sample to merchants >>>>>Sent for testing >>>>>Rcvd report.
  • Sample approved for production and issue to line from store.
a) Legal Criteria

Ownership is not concerned but preference will be given on who are representing by A Limited Company.

i) Must have a Bank account
ii) Should posses valid Trade Licenses and TIN number
iii) Must have VAT registration.
b) Business Criteria
i) Should have own establishment.
ii) Good Quality Master.
ii) Ability to provide post sales service.
iv) Offer better & very competitive market price.
v) Should have reasonable Clientele.
vi) Good credit report.
c) Infrastructure & Logistic Criteria
i) Should be able to provide transport
ii) Should have an automated office system.
iii) Have good Human Resources.

d) Financial Criteria

i) Should not be a Bank or Tex defaulter.
ii) Should be solvent entity.
iii) Should offer good discount.
iv) Should be able to give credit period as required by LFL.

03. Procurement for Enlistment

a) Any supplier intends to get enlisted with the entity shall have to serve an Application/Quotation describing the Company / Business profile. The application should be accompanied with below documents-
i) Copy of Trade Licens
ii) Copy of TIN & VAT registration.
iii) Bank solvency certificate
iv) List of current buyer.

b) Scrutiny of Application: Primary scrutiny shall be carried out by Procurement Department while doing the verification of the paper submitted; the concerned dept. will score application / applicant (Table-1). The rating will be based on the below:

For each applicant the score must be at least 15 points. Separate note sheet having all details with the recommendation will pass or Final approval from the GM Finance. A copy of approval will forward to Accounts Department also.

Review of Enlistment

Review of Enlistment Shall be done annually with due regards to the quarterly suppliers evaluation report. The review shall take place with reference to following points:

a) Historical performance of the supplier.
b) Market position of the supplier
c) Management changes in the supplier organization.
d) Introduction of the new product in the market.

Breach of Code of Conduct

Below shall be considered as breach of Code of conduct for supplier working with LFL.

i) Material benefit offered.
ii) Threat and Physical assault.
iii) Bribing
iv) Visiting Employee’s House.
v) Taking any current employee of LFL as partner.

Non Nominated Supplier

  • Details analysis of the product range / machinery infrastructure to evaluate the capacity / lead-time of the concerned supplier.
  • Visit the supplier facility with merchandiser / finance to set the initial heads up / payment procedure and the plant overall / general safety measures as well as compliance status.
  • Review the past history of the supplier in terms of the other clients they are dealing with.
  • Emphasis on the internal quality checking procedure / if any loopholes immediately implement the advisable system.
  • Make them aware of the ownership responsibility if any deviation in terms of quality / delivery. Thanks
  • Effectiveness for implementing corrective action plan (CAP) in case of complains.
  • Renewal of the all sort of certificate in 2 years interval. Need to make sure of the same.
  • After taking the positive joint decisions we are agreed to place the order to the supplier.
  • Requisition rcvd from merchandiser with all the relevant details.
  • Asked for the sample from supplier with specified parameters.
  • Sample provided by the supplier.
  • Sample will be checked by the merchants and getting feedback on the same.
  • Approval rcvd from merchants >>>>>>>If not approved need to resubmit again.
  • Placing the order with po / delivery schedule.
  • Supplier feedback on the delivery schedule.
  • Continue follow up/ tracking the po with supplier for avoids any delay in delivery.
  • Delivery rcvd in fly >>>>>> All the delivery challan has to verified by the store and put a Auto chop for well rcvd >>>> purchase dept will provide all the challan copy with store seal to account for the payment.
  • Checking the quantity /quality by the gate / store QA to and confirm all ok >>>>>> If not found ok we need to inform supplier and replacement has been done.
  • Store provided bulk sample to merchants… sent for testing… rcvd report.
  • Sample approved for production and issue to line from store.

Nominated Supplier

  • Since buyer has assessed the supplier and nominates it thus we respect buyer and accept the supplier as our approved Supplier.
  • Requisition rcvd from merchandiser with all the relevant details like specifications / input date / etc
  • Approval rcvd from merchandiser >>>>>>> If not approved need to resubmit again. We will communicate with supplier with corrections details.
  • Placing the order with po with item / delivery schedule.
  • Supplier feedback on the delivery schedule.
  • Continue follow up / tracking the po with supplier for avoids any delay in delivery.
  • Delivery rcvd in facility >>>>>>All the delivery challan has to verified by the store and put a Auto chop for well rcvd by store >>>>>Purchase dept will provide all the challan copy with store seal to account for the payment.
  • Checking the quantity / quality by the gate / store QA to and confirm all ok >>>>>>if not found ok we need to inform supplier and replacement has been done.
  • Store provided bulk sample to merchants >>>>>Sent for testing >>>>>Rcvd report.
  • Sample approved for production and issue to line from store.

Conclusion

Performance of non-nominated supplier will be assessed every year based on their works. Nominated suppliers are being assessed on periodically basis by buyers. Nominated supplier approval process is described above in this article.

Engr. Kh. Mashiur Rahman Email: garmentspedia@gmail.com

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