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 passion 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.
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Toyota Boshoku India Purchasing Policy & Procedure

Table of Contents

Mission Statement

Need for Purchasing Policy

Guidelines

Policy

Procurement of In Direct Materials

Procurement of Direct parts

Procurement of Imported Materials

Procurement of Machineries

Policy for Utility works

Policy for Supplier Selection and Evaluation

Policy for SPTT & HVPT

Policy for Localization

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

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

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 accountability shall be taken for all purchasing decisions

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Purchasing Policy & Procedure - Guidelines

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 user 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 terms 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

Policy

Procurement of In Direct Materials

Purchase Department to receive Purchase Requisitions / Purchase Indents with

minimum of 3 quotations from user 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 verify 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 OEs or OE
approved Stockiest or Distributors.

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Purchasing Policy & Procedure - Policy

Necessary documents for authorization shall be received from OEs and prices
with discount shall be discussed and finalized with OEs 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 OEs
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 terms 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 terms 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 User department + Purchase + Finance +
Excise members 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

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 terms

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
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Purchasing Policy & Procedure - Policy

Any Change in PO terms 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
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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

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

b.3 Supplier Obligation to terms & conditions

When a Supplier dispatches the Goods / Materials in response to TBI PO / Schedule

Supplier has legally complied with PO / Schedule terms & conditions and is under
no obligation of the Purchaser to accept the goods unless the Supplier has made an
error in terms 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.

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

Procurement of Imported Materials - Indirect

Flow Chart

Receipt of Material
at port of
destination

START

PR / Recieptd
PI Approved

Clearnace
procedure

Price
Verification
Incoterms

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

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

Procurement of Machineries

Due Approval / Authorization must be obtained from TBAS / TBJ before

requesting for procurement by the User 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 User 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

Policy for Utility works

All Utility work proposals by User department must get prior approval from
TBAS / TBJ w.r.t all criteria

Joint team of Purchase member + User member + Finance member to study
supplier selection & other processes

Joint 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 verify 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 terms 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
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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

Joint team to monitor the progress of work

Any Increase/Decrease in measurement of work carried should be
authenticated by Joint 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
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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, User department shall provide complete
details of work and other specification details (BOM) to Purchase and to Joint
team

Primary responsibility of Execution of work lies with User 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 Joint 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

Policy for Supplier Selection and Evaluation

START

Identify TBI requirement

Source
Identification

Existing /
New

<New>
Supplier Quessionaire

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

Cost Feasability

Source
Finalization

<New>

Add in approved
supplier list

<Existing>

Commercial Negotiation
/ Scheduling

LOI / PO
(Tool / Mould / Part)

SPTT / HVPT

Sample Receipt

QC Inspection , Testing
& Evaluation

<NG>

Sample
Approval

<OK>

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

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

Policy for Localization

Following procedure is adopted to localize:

Technical Feasibility study
Resp:

Purchase / QCD

TBAS Approval to start

Localization

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

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.
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Purchasing Policy & Procedure - Policy

Financial Assistance to Suppliers

Purchase Department official can propose to give financial assistance to supplier in

case of urgency.
Complete supporting document to be made and final decision to be taken by
Director & Managing Director.
For any additional Financial support 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 user 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, Cadmium, 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

Policy for Cost Reduction

START

Management target
on material cost

Official request to
all suppliers ( Direct

Supplier feedback

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

Obsolete Material

(Carpet, PVC &

Others)

Used Goods (Furniture

& Other General items)

(Asbestos sheet
& others)

Non-useable goods
(Furniture, general items)

Used Equipment

(AC & Other s)

Used Motor Vehicles

Used Production scrap

( Hazardous / Non

Used Trail Material

Used Free Samples

Coconut

10

1
1

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 terms and conditions to be as per agreement terms 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 terms 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 terms 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 user department
and will report to management. MD approval is a must before selecting
supplier and commercials
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Purchasing Policy & Procedure Policy

11

Procedure for Internal control

Sl#

Item

MSMED

Quote in PDF

MD Approval for PR /
PI

Vendor Master
Creation (Authorised
Purchase member)

Multi Level approval

in SAP

Amendment thru
Verison Management

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

Minimum 3 Quotation
in PDF format

10

Scrap Disposal News

paper

11

OE Price check for

all B/O parts

12

Joint 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 Terms &
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

XX

55

00000

Regular

XX

45

00000

Service

XX

63

00000

Sub Contract

XX

66

00000

Imports

XX

48

00000

Internal Requisitions

Item

By

Final approval

Document Receipt
at Purchase by

Proposal Introduction

User Department

MD

H OD

Purchase Requisition

User Department

MD

H OD

Advance Payment Request

Purchase

MD

Payment Request Form

Purchase

HOD

H OD

For questions or comments about Purchasing Policy & Procedure contact:

TBI Purchase Department
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Purchasing Policy & Procedure

TOYOTA BOSHOKU

Toyota Boshoku India Purchasing Policy & Procedure

Established < January> <2011>
Toyota Boshoku Automotive India Pvt Ltd.
Purchase Department
<Conceptual design & edition: Information Systems Dept.>

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