Internal Procurement Policy

Procurement Policy 1-Pager

<aside> 💡 What is the goal of this procurement policy?

Compliance with applicable laws, regulations and internal policies.
Transparency by making clear how vendors can participate in the process.
Reduced risk by establishing clear procedures for vendor selection and contract management, which helps to reduce the risk of fraud, waste, and abuse.
Improved efficiency by establishing clear procedures for vendor selection, contract negotiation, and contract management. This helps to reduce the time and resources required to conduct procurement activities.
Support of strategic goals by aligning the procurement policy with our organisation's strategic goals. </aside>

When should you engage Procurement?

Before contacting vendors for offers, please engage with [RELEVANT TEAM OR PERSON] in the following cases:

💰 A) Purchase value is greater than $10,000/10.000€
❗ B) High level of business risk or the sourcing is of high strategic value

The 4 stages of our procurement process

<aside> 💡 At [COMPANY NAME], we have four core stages which form our Procurement process, with distinct activities along the way at each stage:

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Stage	Activities	Do’s	Don’ts
1️⃣ Planning & Partnering	👉🏽 Idea Generation to enable strategic goals
👉🏽 Plan for P2P Activities	✅ Engage with Procurement right at the beginning
✅ Involve all stakeholders
✅ Define your business needs	🚫 Skip the planning process
🚫 Bypass Procurement
🚫 Reach out to a vendor without a clear picture of what you need
2️⃣ Source to Contract	👉🏽 Business requirements
👉🏽 Engage market (RFP, RFQ, RFI etc.)
👉🏽 Vendor selection
👉🏽 Commercial negotiation and contracting	✅ Refine business needs - must-haves / nice-to-haves
✅ For annual spend < 10k, still request quotes from several vendors and ensure these are uploaded into Sastrify
✅ Evaluate proposals based on pre-defined criteria	🚫 Pre-commit to any deal
🚫 Conduct negotiations without Procurement
🚫 Deviate from your pre-defined criteria to accommodate selection of a specific vendor
3️⃣ Suppler Relationship (SRM) & Contract MGMT	👉🏽 Contract administration & execution
👉🏽 Contract management (value and performance)
👉🏽 Vendor relationship management	✅ Upload the signed contract in Sastrify & keep contract term up to date
✅ Frequently review vendor performance
✅ Address issues with the vendor promptly	🚫 Execute a contract before signature
🚫 Wait until the contract expires to think about next steps
🚫 Ignore issues or problems with vendor performance
4️⃣ Requisition to pay	👉🏽 Sign order form
👉🏽 Pay invoice	✅ Establish clear procedures for requisitioning and approving purchases
✅ Loop in the signatory of the agreement early on
✅ Promptly process invoices and payments to vendors	🚫 Commit to paying a vendor before contract signature
🚫 Don't make purchases that are not necessary
🚫 Split demand to avoid procurement thresholds

Delegation of Authority

<aside> 💡 To simplify transactions with vendors and to make the overall Procurement process more efficient, please adhere to the following signature process for all your purchases:

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Purchase Value USD💲	Purchase Value EUR 💶	Signature Process ✍🏽
Less than $10,000	Less than €10,000	Founder to sign the contract, Department VP to involve Founder by way of creating a task in the Sastrify platform or on the Budget Approvals Board in Asana and assigning a due date at least 1 working days before required signature).

For clarification purposes: Department VP is responsible to inform Founder as soon as the purchase process is started to ensure a smooth signature process | | Between $10k-$1-0k | Between €10k-€100k | Founder to sign the contract, Department VP to involve Founder by way of creating a task in the Sastrify platform or on the Budget Approvals Board in Asana and assigning a due date at least 3 working days before required signature).

For clarification purposes: Department VP is responsible to inform Founder as soon as the purchase process is started to ensure a smooth signature process | | Purchases greater than $100,000 | Purchases greater than €100,000 | Founder to sign the contract, Department VP to involve Founder by way of creating a task in the Sastrify platform or on the Budget Approvals Board in Asana and assigning a due date at least 5 working days before required signature).

For clarification purposes: Department VP is responsible to inform Founder as soon as the purchase process is started to ensure a smooth signature process |

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