Procedure for evaluating and managing the suppliers

PROCEDURE FOR EVALUATING AND MANAGING THE SUPPLIERS

1. PURPOSE:

To Evaluate and select the supplier that is suitable with the standard SA 8000:20001.

2. SCOPE:

This procedure applies to the evaluation and selection of supplier to be in service to the offices as well as to the Garment factory.

3. DEFINITION:

3.1. The terms used are mentioned in SA 8000:2001 standard.

3.2. Evaluator: the person who has been trained about internal evaluation SA 8000.

3.3. Special cases: being requested by the customers, having large quantity order, having many orders and others decided by the General Director.

3.4. Abbreviation:

– Social Duty (TNXH)
– Administrative organization (TCHC)
– The supplier management section (BPQLNCU) (SMS) is the section being responsible for working with the supplier during the time they supply goods and service.

4. CONTENT:

4.1. Make the initial list:

The SMS is responsible for making the list of initial suppliers and submitting to the direct manager to check, sign and present to the General Director for approval.

4.2 a. Pre-evaluate (applies to special cases)

The SMS sends to the supplier a Pre-evaluation record as form No 0039, requests them to fill in the form all the required information, sign, stamp and return it.

4.2 b. Evaluate the supplier:

4.2.1. Get information:

The evaluator gets information from the supplier for evaluating. This can be done by asking the supplier to provide with information as mentioned in form No 0039 and/or visiting the working place and/or interviewing the workers of the supplier.

4.2.2. Get information in special cases:

– After receiving the Pre-evaluation record, the SMS will inform the supplier of the date of the official evaluation and send to them the list of involved work and people
– On the date of evaluation, the supplier will receive an evaluation plan and a list of evaluators.
– The evaluator will examine the supplier as mentioned in form No 0040 as well as compare with the Pre-evaluation record to assure the unity between information in the record and from directly collecting.
– During evaluating process, the evaluator asks the supplier about the related proof of finished work as mentioned in form No 0041.
– After finishing work with the supplier’s agent, the evaluator may pay a visit to the factory and collect more information, compare with collected one.
– The evaluator may as well interview the workers to examine the level of demand satisfaction as in SA 8000:2001 standard. During interviewing time, nobody from the managerial level of the supplier is allowed. The list of interviewed workers and their answers will be a secret.

4.3. Evaluate:

4.3.1. The evaluator will determine the supplier’s suitability to SA 8000:2001 standard. After that, require them to correct the unsuitability as form No 0040.

4.3.2. In special cases:

– After finishing evaluating the supplier, the evaluator will have a meeting with the supplier’s agents.
– The evaluator comment on the work of the evaluation team.
– He (or she) tells the supplier about the unsuitable points. Both sides will discuss about each point, determine the cause and the problem of the unsuitability.
– Both sides will make an agreement on the unsuitable points. The evaluator requests the supplier to have corrective actions and sign in the commitment form. The correction period will depend on the nature and level of problem. Maybe 30, 60 or 90 days.

4.4. The evaluation result:

– Base on the result of the evaluation, the evaluator will have the final decision as follows:

4.4.1. Not accept the supplier for their too high level of infringement.
4.4.2. Accept the supplier but request them to correct some unsuitable points.
4.4.3. The supplier is perfect and accepted.
– The evaluator then will send the result to the supplier.

4.5. Make the evaluation report:

– Base on the Pre-evaluation record (in special cases), the evaluation result and the supplier’s commitment, the evaluator will make an evaluation report and send to the board representative of SD (Social Duty) to check, sign and forward to the General Director for approval.
– Base on the checking result from the board representative, The SMS will make a list of official suppliers and present to the General Director for approval.
– After that, The SMS must keep all the supplier evaluation records in its office for at least 3 years ever since.

4.5. Re-evaluate the supplier:

– For one year at least, the company re-evaluate the supplier by the management system ISO 9001:2000, also check the supplier after the correction period.
– The evaluation procedure is the same as above.

5. REFERENCE DOCUMENT:

6. APPENDIX:

– Pre-evaluation No: 0039
– The list of initial suppliers No: 0038
– The list of official suppliers No: 0042
– The supplier’s commitment No: 0041
– The evaluation conclusion about the supplier No: 0043
– The evaluation report on the supplier’s Social Duty No: 0040

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