Toyota Purchasing Policy 3c3w1b

TOYOTA BOSHOKU

We contribute to society by developing leading-edge technologies and manufacturing high-quality products

Purchasing Policy & Procedure Toyota Boshoku Automotive India P Ltd Purchase Department

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Corporate Philosophy

Society

The Company will promote corporate growth while fulfilling the following responsibilities as a good corporate citizen: (1) Maintain ethical values, ensuring that our corporate activities are fair and transparent; (2) Supply safe products that do not harm the environment; Promote corporate activities that help protect the global environment; (3) Create a better society as a member of our local communities.



Customers

The Company will develop innovative technologies and products to deliver quality that satisfies our customers.



Shareholders

The Company will promote innovative management policies that ensure future corporate growth and the trust of our shareholders.



Employees

The Company will build and maintain positive labor-management relations, respect the individuality of its employees and create safe and comfortable workplaces.



Business partners

The Company will promote open and mutually beneficial relationships with its business partners in pursuit of long-term growth and prosperity.

TB Way

The values, patterns of conduct, and philosophies that Toyota Boshoku must maintain and observe

We contribute to society by developing developing leadingleading-edge technologies and manufacturing highhigh-quality products.



We meet challenges with courage and creativity, to realize our dreams.



We carry out Kaizen continuously, aiming to achieve higher goals.



We practice Genchi Genbutsu by going to the source to analyze problems and find their root causes. Once a decision is made, we move quickly to carry out the plan, with ion and a sense of mission.



We seek to do our best, act professionally, and take responsibility for our actions.



We respect the values of other cultures and accept differences, with an open mind and global perspective.



As a good corporate citizen, we do what is right and contribute to society.



We respect the individual and use teamwork to produce the best result. 1|Page

Toyota Boshoku India – Purchasing Policy & Procedure

Table of Contents

1

Mission Statement

2

Need for Purchasing Policy

3

Guidelines

4

Policy

4

a

Procurement of In Direct Materials

4

b

Procurement of Direct parts

4

c

Procurement of Imported Materials

4

d

Procurement of Machineries

5

Policy for Utility works

6

Policy for Supplier Selection and Evaluation

7

Policy for SPTT & HVPT

8

Policy for Localization

9

Policy for Cost Reduction

10

Policy for Scrap Disposal

11

Procedure for Internal control

12

Documents Life

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Purchasing Policy & Procedure - Mission

1

Mission Statement

The mission of the Purchasing member is to procure the highest possible quality of goods and services for the Company at the lowest possible cost. We assist departments in identifying best source for procuring the materials within the stipulated time.

To accomplish our mission, certain Guidelines and Procedures have been established. These Guidelines & Procedures must be adhered to in order to ensure compliance with applicable Central and Local government regulations. Utmost care is taken to ensure that unlawful activities are not allowed and fundamentals of best business practises are followed.

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Purchasing Policy & Procedure - Need for Purchasing Policy

2

Need for Purchasing Policy

Purchase Department is committed in setting up of efficient, effective, economical & sustainable policy procedure in all Purchasing activities. This policy covers: a. Procurement of Goods or Services subject to contract including consultants b. Asset purchases c. General Operating services / expenditure items including Direct and In-Direct materials, Imported materials, Sub-contracting, Machineries and Equipment hiring d. Ensuring that Purchasing transactions are carried out in a fair and transparent manner e. Strengthens Integrity and Confidence in the Purchasing system f. Ensuring that Value for Money in its Purchasing g. Considers the Environmental impact of the procurement process across the life cycle of goods and services h. Full ability shall be taken for all purchasing decisions

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Purchasing Policy & Procedure - Guidelines

3

Guidelines

Purchase Department has the authority to place order for direct materials, In-direct materials, Capital Goods, Imported materials and may be made with the vendor using a Purchase Order. Purchase Department has to make a PO after receipt of Purchase Requisitions / Purchase Indents duly approved by Director Purchase / Managing Director Purchase Department are not authorized to make capital equipment purchases unless TBAS / TBJ approvals are obtained & submitted along with Purchase Requisitions / Purchase Indents by department with necessary allocation of funds in the Budget approval sheet. Purchase Department officials should not in indulge in any wrong practices in giving or favoring business orders to suppliers. Purchase Department officials to establish clarity on all Purchases in of Cost, Quality and Service requirements and necessary records must be stored with Purchase Order for all future references.

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Purchasing Policy & Procedure - Policy

4

Policy

4

a

Procurement of In Direct Materials

Purchase Department to receive Purchase Requisitions / Purchase Indents with minimum of 3 quotations from departments.

All Quotations should be received only in PDF format with necessary signature and seal of suppliers and shall be in force with effect from 01.09.2011.

Exceptions are given for all Proprietary items or items from Original Equipment Manufacturer.

Purchase Department to the quotation details and shall check the prices with other alternate sources if any.

Complete Vendor Registration procedure for identifying the new source for Micro, Small or Medium scale industry to be made and necessary documentation to be obtained from the respective source.

The above documents to be furnished to Finance Department to ensure Statutory requirements are completed.

The policy shall ensure that items are obtained directly from the OE’s or OE approved Stockiest or Distributors.

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Purchasing Policy & Procedure - Policy

Necessary documents for authorization shall be received from OE’s and prices with discount shall be discussed and finalized with OE’s where ever applicable.

Data sheet shall be made for each category of items for confirmation of prices with discount details viz: Stationery, Electrical, Consumable, Small tools, Safety items.

Prices of all the above items shall be checked once in every 3 months with OE’s and also local market condition

Suitable Price correction shall be made accordingly and the period for correction stands at 3 months once for above category of items

Each PO shall be referred with Data Master for Price and Discount PO with relevant documents shall be enclosed for final approval by HOD, Director Purchase and MD All Purchase Orders duly approved shall be sent to suppliers and Due acceptance for PO for all types of items procured shall be received from suppliers for record purpose Any Change in PO should be made only thru PO Amendments No Hand written should be allowed on the PO except Signatures

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Purchasing Policy & Procedure - Policy

Any infrastructure development viz: Building, Plant expansion …at TBI to be monitored, approved by a team from department + Purchase + Finance + Excise before Final approval by MD

Memorandum Of Understanding shall be made for all regular suppliers to enforce strict norms on having Ethical business practices

Whistle Blower Policy shall be made and informed to all suppliers and necessary acknowledgement for having seen and noted shall be received by purchase department

The above activity to be monitored by Legal department Purchasing to be undertaken on a competitive basis in which all potential suppliers are treated impartially, honestly and consistently Where a higher priced conforming offer is recommended,. there should be clear and demonstrable benefits over and above the lowest total priced conforming offer duly approved by MD Where the value of procurement of goods or services, Direct Purchase from a single source can be made after first obtaining three verbal competing bids. However, it is recommended to use professional discretion and occasionally undertake market testing with more forms of quotation to ensure best value is maintained. All documents relating to quotation process must be saved in the hard copies attached to the file copy of the Purchase Order

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Purchasing Policy & Procedure - Policy

For the Procurement range, the selection should not be based on the price alone and it is strongly recommended to consider some of the qualitative factors such as Quality, stock availability, accreditations, time for completion of delivery, Warranty conditions, technology, maintenance requirements, Organization capability and previous relevant experiences as part of the assessment of the quote Items Purchased thru petty cash, petty cash vouchers are to be made and duly approved by Director or MD (amount less than INR 5,000/-)

All Records associated with purchase of materials must be recorded and retained for a minimum of 5 years

4

b

Procurement of Direct parts

Sales Department receives RFQ from customer

RFQ details shall be circulated to all concerned departments by Sales

Cross Functional Team (CFT) will decide the sourcing strategy viz. In-house or Out source Respective Drawings with specification shall be received by Purchase department Purchase will identify suitable suppliers based on the criticality of items RFQ shall be sent to 2 or 3 suppliers

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Purchasing Policy & Procedure - Policy

All Quotations should be received only in PDF format with necessary signature and seal of suppliers

Cost study shall be made with comparison Standard norm, Existing norm and also conditions of cost prevailing at the time of feasibility study shall be duly considered for arriving at final cost Complete Vendor Registration procedure for identifying the new source for Micro, Small

or Medium scale industry to be made and necessary

documentation to be obtained from the respective source The above documents to be furnished to Finance Department to ensure Statutory requirements are completed Cost merits shall be sent to TBAS and TBJ where ever applicable either by Purchase or by Sales department Suitable approvals shall be obtained for cost proposals Official LOI (Letter Of Intent) duly approved by Managing Director shall be sent to supplier to start Tool / Mould making activity Each PO shall be referred with Data Master for Price and Discount PO with relevant documents shall be enclosed for final approval by HOD, Director Purchase and MD All Purchase Orders duly approved shall be sent to suppliers and Due acceptance for PO for all types of items procured shall be received from suppliers for record purpose 8|Page

Purchasing Policy & Procedure - Policy

Any Change in PO should be made only thru PO Amendments No Hand written should be allowed on the PO except Signatures Memorandum Of Understanding shall be made for all regular suppliers to enforce strict norms on having Ethical business practices Whistle Blower Policy shall be made and informed to all suppliers and necessary acknowledgement for having seen and noted shall be received by purchase department The above activity to be monitored by Legal department Purchasing to be undertaken on a competitive basis in which all potential suppliers are treated impartially, honestly and consistently Where a higher priced conforming offer is recommended,. There should be clear and demonstrable benefits over and above the lowest total priced conforming offer duly approved by MD For the Procurement range, the selection should not be based on the price alone and it is strongly recommended to consider some of the qualitative factors such as Quality, stock availability, accreditations, time for completion of delivery, Warranty conditions, technology, maintenance requirements, Organization capability and previous relevant experiences as part of the assessment of the quote All Records associated with purchase of materials must be recorded and retained as per the Model Life and Annexures to be attached for all PO Quality evaluation of parts to be done by TBI Quality Department and Final approval of parts with specification shall be subjected to Final approval by Customer based on workability condition and other related parameters Production control department shall give monthly schedule to supplier and supplier shall despatch the quantity as per monthly schedule given with correct document 9|Page

Purchasing Policy & Procedure - Policy

Any change in the Design of component shall be with prior approval thru Instruction Memorandum duly approved by Director or thru an ECI (Engineering Change Instruction) duly approved by the Customer

4

b.1 Mode of Payment

Supplier sends monthly payable statement and payment shall be made thru RTGS transfer or thru Cheque 4

b.2 Code of Ethics

All Suppliers shall enter into agreement with TBI for Memorandum Of Understanding (MOU) and Whistle Blower Policy. All Direct Suppliers shall also enter into General Purchase Agreement (GPA) and Tooling Agreement where ever applicable with TBI along with above agreements (refer Table below :) Name

GP A

Tooling Agreement

M O U

Whistle Blower Policy

Direct Material Supplier In Direct Material Supplier Spares Equipment Supplier Service Providers Contractors Direct Material Import In Direct Material Import

Gifts, Entertainment should be declined in accordance with provision of Code of conduct.

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Purchasing Policy & Procedure - Policy

4

b.3 Supplier Obligation to & conditions

When a Supplier dispatches the Goods / Materials in response to TBI PO / Schedule Supplier has legally complied with PO / Schedule & conditions and is under no obligation of the Purchaser to accept the goods unless the Supplier has made an error in of Quality or others. In case of Error, TBI shall charge the Supplier thru Claim recovery note given from Quality / Production Department duly approved by Head Of Department and shall subsequently deduct the respective charge from Suppliers payment.

4

b.4 Purchasing Services Services



To make, review and sign all Procurement agreements



Supplier Selection and Evaluation



To establish new suppliers



To process Purchase Order changes



To ensure Purchases are in acceptance with requirements



Supplier improvement activities (Quality Improvement, Annual Supplier Awards, VA VE Meetings, Kaizen promotion activities)

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Purchasing Policy & Procedure - Policy

4

c

Procurement of Imported Materials - Indirect

Flow Chart

Receipt of Material at port of destination

START

PR / Recieptd PI Approved

Clearnace procedure

Price Verification Inco

PO

Duty Payment

Payment Remittance thru' Bank

Release of Goods

Receipt @ TBI Despatch from Origin

END

Document thru' courier mode

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Purchasing Policy & Procedure - Policy

4

c

Procurement of Imported Materials - Direct

Flow Chart

START

Identification / Evaluation of Source by

PO / Information to supplier

Dispatch of Documents

Information to TBI Clearing

Price Negotiation

Disptach from Port of destination

PC Schedule

Receipt @ TBI

Receipt of Quotation from supplier

END

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Purchasing Policy & Procedure - Policy

4

d

Procurement of Machineries

Due Approval / Authorization must be obtained from TBAS / TBJ before requesting for procurement by the Department Official confirmation for the above to be attached with Purchase Requisition Technical Evaluation sheet to be enclosed duly approved by Director and Managing Director to be attached along with Purchase Requisition Purchase Department shall check and negotiate the prices with supplier and recommendation can be made for change in sourcing wherever feasible with consent from Department. PO shall be made duly approved by Managing Director and will be processed for payment purpose

Mandatory requirement of obtaining Supplier acceptance for the PO to be obtained by Purchase Department and record to be maintained for all future correspondence

Following are examples of Procurement agreements that must be signed by Purchasing member:

All types of Purchase Orders Purchase Order Amendments Payment Request Sample Submission request Supplier Change Request Inter Office Memo

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Purchasing Policy & Procedure - Policy

5

Policy for Utility works

All Utility work proposals by department must get prior approval from TBAS / TBJ w.r.t all criteria t team of Purchase member + member + Finance member to study supplier selection & other processes t team has the right to select supplier and commercial finalization shall be at the discretion of HOD Purchase with Final authority and approval by MD All Quotations should be received only in PDF format with necessary signature and seal of suppliers and shall be in force w.e.f 01.09.2011 Purchase Department to the quotation details and shall check the prices with other alternate sources if any Complete Vendor Registration procedure for identifying the new source for Micro, Small or Medium scale industry to be made and necessary documentation to be obtained from the respective source PO with relevant documents shall be enclosed for final approval by HOD, Director Purchase and MD All Purchase Orders duly approved shall be sent to suppliers and Due acceptance for PO for all types of items procured shall be received from suppliers for record purpose

Any Change in PO should be made only thru PO Amendments No Hand written should be allowed on the PO except Signatures Memorandum Of Understanding shall be made for all regular suppliers to enforce strict norms on having Ethical business practices 15 | P a g e

Purchasing Policy & Procedure - Policy

Whistle Blower Policy shall be made and informed to all suppliers and necessary acknowledgement for having seen and noted shall be received by purchase department The above activity to be monitored by Legal department Purchasing to be undertaken on a competitive basis in which all potential suppliers are treated impartially, honestly and consistently Where a higher priced conforming offer is recommended,. There should be clear and demonstrable benefits over and above the lowest total priced conforming offer duly approved by MD For the Procurement range, the selection should not be based on the price alone and it is strongly recommended to consider some of the qualitative factors such as Quality, stock availability, accreditations, time for completion of delivery, Warranty conditions, technology, maintenance requirements, Organization capability and previous relevant experiences as part of the assessment of the quote All Records associated with purchase of materials must be recorded and retained as per the Model Life t team to monitor the progress of work Any Increase/Decrease in measurement of work carried should be authenticated by t team and final approval by MD is mandatory before amending the Purchase Order Necessary Statutory obligation viz. PF, ESI for onsite member working to be obtained by supplier & HR Department reserves the right to approve 16 | P a g e

Purchasing Policy & Procedure - Policy

Disposal of Old items recovered during execution of project to be auctioned and final authority on price and supplier shall be made by MD Any change in the specification of Design during execution of project should be notified to TBAS / TBJ if applicable and final changeover to happen after approval by MD Before start of any Utility work, department shall provide complete details of work and other specification details (BOM) to Purchase and to t team

Primary responsibility of Execution of work lies with department and Purchase shall have Secondary Responsibility

All Inward & Outward movement of Goods during execution of work should be thru correct documents duly approved by Concerned authorities Any Discrepancy in movement of Materials shall be subjected to verification by t team and final authority on action to be initiated in case of any fraudulence shall be made by MD

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Purchasing Policy & Procedure - Policy

6

Policy for Supplier Selection and Evaluation START

Identify TBI requirement

Source Identification

Existing / New

Supplier Quessionaire

<Existing> Supplier Assessment / Visit Request for Quotation (RFQ)

Cost Feasability

Source Finalization



Add in approved supplier list

<Existing>

Commercial Negotiation / Scheduling

LOI / PO (Tool / Mould / Part)

SPTT / HVPT

Sample Receipt

QC Inspection , Testing & Evaluation



Sample Approval



50% Tool Payment

Pilot Ordering

PCR 1, 2 and 3

Final Production trials / Confirmation

MASS PRODUCTION

Balance 50% Payment END

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Purchasing Policy & Procedure - Policy

7

Policy for SPTT & HVPT

Mission Statement

• To purchase better control part with lower cost

• To establish supplier base to supply out sourcing parts with Quality, Quantity and Cost in timely manner

Concept

Suppliers Parts Tracking Team is a virtually organized team who manages production preparation and countermeasure issues systematically.

The entire concept of SPTT shall be done in accordance with Global Purchasing Dept. of Toyota Boshoku and made by Mr. Masayuki Sakai.

Three visits shall be made and dept. representing would Purchase, Quality, PEDD & PC.

Complete process plan with production preparation activity schedules will be checked and suitable countermeasures shall be taken for any items deviated from originally set targets.

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Purchasing Policy & Procedure - Policy

8

Policy for Localization

Following procedure is adopted to localize: Technical Feasibility study Resp:

Purchase / QCD

TBAS Approval to start Localization

8

Cost Feasibility study Resp:

Purchase

Sub Supplier change request to TKML with ECR / Schedule Resp: Pur/Sales/PED/PEDD

TBI Management Approval Resp:

MD

LOI / PO with Advance Resp:

Purchase

Part Development / SPTT

Sample Submission to TBI QCD

Final Evaluation Approval from TBAS/TBJ/TMAP/TAB/TKML

PCR Trail List at TBI /TKML

V-V stop ordering after PCR II approval from TKML

SVP / Implementation

1

Benefits of Localization

Actual Localization benefit to be taken for 1 full year (12months) from the date of Implementation. This shall be taken for Cost Reduction annually. 20 | P a g e

Purchasing Policy & Procedure - Policy

8

2

Financial Assistance to Suppliers’

Purchase Department official can propose to give financial assistance to supplier in case of urgency. Complete ing document to be made and final decision to be taken by Director & Managing Director. For any additional Financial to supplier, Director and MD reserves the right to charge Interest or not.

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Purchasing Policy & Procedure – Policy “Green Procurement Policy

GREEN PROCUREMENT POLICY As a part of our ongoing commitment to improve the environment, this policy seeks to reduce the environment impacts of our operations and promote sustainable development by the integration of environment performance considerations in the procurement process.

We are committed to the integration of environment performance considerations in the procurement process including planning, Procurement, use and disposal. We are committed to considering the environmental aspects, potential impacts and costs, associated with the life cycle assessment of goods and services being acquired

GREEN PROCUREMENT

Green procurement or environmentally preferable purchasing is the practice of procuring products and services that are less harmful to the environment (land, air and water) and all species including humans that depend on environment for survival. Green products are those that are made with less harmful materials or which when produced or used/consumed would have a minimal impact on the environment. Listed below are a few ways through which we aim to integrate the green procurement policy with the Toyota environment policy.

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Purchasing Policy & Procedure – Policy “Green Procurement Policy

We shall encourage and prefer eco-friendly products, which are more power efficient. We shall prefer to purchase from a source that is less polluting or uses clean technology We shall encourage and prefer vendors who use recycled packaging material. The possibilities of further reuse and/or recycling shall be explored with the based on needs and other conditions

Mandatory Requirement

• All parts made for Toyota should be free from SOC – Substance Of Concern. SOC items are Lead, Cium, Mercury and Hexavalent Chrome (as per Toyota Standards) • Suppliers are providing certificates for SOC free supply and record to be maintained at Design Department • Suppliers should supply parts free from V O C • All parts made for Toyota should be free from Toyota Banned Chemical items. • All Suppliers have been requested to obtain ISO 14001 certification and road map to achieve is made

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Purchasing Policy & Procedure – Policy

Purchase Order Approval Procedure

START

Director

Sr. Director

PO Creation SAP

Purchase Member

1st PO Approval SAP

Purchase HOD

Final Approval SAP

Managing Director

Purchase Order print out

END

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Purchasing Policy & Procedure – Policy

9

Policy for Cost Reduction

START

Management target on material cost

Official request to all suppliers ( Direct

Supplier

Negotiation

Making cost reduction data

Management Information

PO amendment

Credit not if any

END

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Purchasing Policy & Procedure – Policy

10

Policy for Scrap Disposal

The Purchasing Department will be responsible for the disposal of TBI Purchased, owned, surplus and obsolete material, goods, equipment, Motor Vehicles, Production scrap, trail material, free samples, E Scrap by the method which obtains Best Value for money including: Auction thru notice at TBI Transfer to other department Return to the supplier for refund or credit Trade in on the purchase of replacement equipment Donation to Charitable purpose

Before sending the scrap material, they have to be first declared unserviceable or scrap by the competent authority. For most of the materials Respective Department Heads / Director of the Departments are competent to classify the materials as unserviceable or Scrap.

MD approval is a must before an Item is classified as scrap and final commercial price to be approved by Director and Managing Director.

Utmost care shall be taken by the supplier / TBI to ensure that the purchased scrap material will be disposed in a proper way and will not have any effect on Environmental Pollution.

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Purchasing Policy & Procedure – Policy

Sell to Local Transfer to Trade In with Auction @ Return to Market as other Dealer / Charity TBI Supplier Scrap Department Agent

Sl#

Item

1

Obsolete Material

(Carpet, PVC & Others)

2

2

Used Goods (Furniture & Other General items)

(Asbestos sheet & others)

4

2

3

Non-useable goods (Furniture, general items)

-

3

Used Equipment

(AC & Other s)

3

1

4

Used Motor Vehicles

-

5

Used Production scrap ( Hazardous / Non

-

6

Used Trail Material

-

7

Used Free Samples

-

8

Coconut

-

10

1

1 1

3

2

Procedure for scrap Disposal of Production parts

All Suppliers to give Deposit amount returnable on termination of agreement and is interest free All Suppliers to give Demand Draft issued by Nationalized Bank in favor of Toyota Boshoku India and to be handed over to Finance Department before lifting the scrap from TBI Frequency of lifting to be periodically evaluated based on need and requirement All other and conditions to be as per agreement agreed mutually

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Purchasing Policy & Procedure – Policy

In case of any issues arising out of non-compliance with regards to disposal of scrap, Supplier has the responsibility to meet all statutory and Legal proceedings Agreement shall be terminated if Supplier does not meet required and conditions of TBI The Price Contract shall be for a period of 1 year and subjected to change after 1 year. The authority on Price contract shall be with MD Actual items to be disposed as per agreement shall be the responsibility of Production control and Stores Scrap materials shall not be dispatched if insufficient funds are available with TBI and in case of any urgency discretion to despatch shall solely lies with Director and MD Required Documentation to be given by Stores / Excise within 1 hour of submitting the final papers by supplier Supplier shall not take any other item other than mentioned in Scrap Agreement and any issues arising out shall be decided by TBI Management and suitable action would be initiated. MD has the authority to take final decision Any sort of Gifts, Entertainment and other illicit activities to select or to award Scrap business is strictly prohibited and in case if found guilty is punishable and final authority shall be with MD

To dispose any other item except other than agreement item Purchase to make feasibility study after obtaining the scrap note from department and will report to management. MD approval is a must before selecting supplier and commercials 28 | P a g e

Purchasing Policy & Procedure – Policy

11

Procedure for Internal control

Sl#

Item

1

MSMED

2

Quote in PDF

3

MD Approval for PR / PI

4

Vendor Master Creation (Authorised Purchase member)

5

Multi Level approval in SAP

6

Amendment thru Verison Management

7

8

In Direct Material

Direct Utilities Material

Spares

Import

Machineries Service

No Hand writing on Director PO or MD need to No Regularisation approve

of PO after receipt of Material / Job

9

Minimum 3 Quotation in PDF format

10

Scrap Disposal News paper

11

OE Price check for all B/O parts

12

t team monitoring for Utility work

13

Check sheet for PO

14

3 Months once Price check / review

15

Price Increase / Decrease proposals (MD approval) before PO Amendment

16

Air Freight proposals (MD approval)

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Purchasing Policy & Procedure – Policy

12

Documents Life

Item

Documents to be kept for

PO Direct Material

Document Mode

Model Life of Vehicle

Soft + Hard copy

PO In Direct Material

5 Years

Soft + Hard copy

PO Spares

3 Years

Soft + Hard copy

PO Capital Items

5 Years

Soft + Hard copy

PO Utility work

3 Years

Soft + Hard copy

General Correspondence

3 Years

Hard copy

PO Modifications / Cancellations / Closure

Anytime that a modification needs to be made to a Purchase Order the purchasing department must notify via one of the models as stated below: Item Price change

Tax Condition change Cancellation / Deletion Short Closure Other & Condition change

Mode Thru version Management Thru version Management Thru Blocking in system Thru version Management Thru version Management

Means

Approval

Final Approval

SAP

HOD

Managing Director

SAP

HOD

Managing Director

Document

HOD

-

SAP

HOD

Managing Director

SAP

HOD

Managing Director

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Purchasing Policy & Procedure – Policy

Purchase Order Numbering System

The following PO numbering system applies: Purchase Order Type

PO number begins with

Followed by

Blanket

1

XX

55

00000

Regular

1

XX

45

00000

Service

1

XX

63

00000

Sub Contract

1

XX

66

00000

Imports

1

XX

48

00000

Internal Requisitions

Item

By

Final approval

Document Receipt at Purchase by

Proposal Introduction

Department

MD

H OD

Purchase Requisition

Department

MD

H OD

Advance Payment Request

Purchase

MD

Payment Request Form

Purchase

HOD

H OD

-

For questions or comments about Purchasing Policy & Procedure : TBI Purchase Department 31 | P a g e

Purchasing Policy & Procedure

TOYOTA BOSHOKU

“Toyota Boshoku India – Purchasing Policy & Procedure” Established < January> <2011> Toyota Boshoku Automotive India Pvt Ltd. Purchase Department

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