When Vendor informs Purchasing Person that production is completed, Purchasing Person needs to request the following:
Purchasing Person needs to inform the Vendor that until all 3 points are received balance payment won't be made, so it is in Vendor's interest to provide the above as soon as possible.
Sometimes final quantity will be the same as the quantity ordered, and sometimes Vendor will produce more or less due to batch size of API, loss during production process, quality control at production stage, or other reasons. Every time before balance payment is made, Purchasing Person needs to make sure that final quantities are correct. Final payment amount will be calculated according to the quantities that will be received and sent to the Customer. It is imperative that Purchasing Person informs Salesperson of any quantity discrepancies as soon as information is received, because Salesperson will use final quantities produced to charge the Customer and start preparing shipping documents.
Once final quantities of each product are received, CBM excel file has to be adjusted to reflect the quantity that will be shipped out. Purchasing Person does not need to wait for any task to change CBM excel file, it has to be done as soon as final quantities are known. Logistics Person will use CBM file to prepare shipping documents, which have to be 100% correct and match the actual goods in the shipment.
CBM excel file is saved in each order folder in the server, in PURCHASE CONTRACT folder. At all times there should be only one correct CBM file, all copies must be deleted unless there is a need to keep several versions for different containers.
India Purchasing Person needs to also receive final Commercial Invoice (CI) and Packing List (PL) from the Vendor. Both documents have to be saved in the server according to the following path: Z:\Shared drives\AdvaCare Purchase India Control\AdvaCare Purchasing\Orders\Shipping Documents"SOXXXX - CLIENT CODE"\Factory Invoice"Vendor Name"
Finished product pictures have to be requested at the same time as final quantities. Finished product pictures are the pictures of cartons (for India: shippers) overall and each carton (shipper) shipping mark with product name, batch number, MFG and EXP dates, Gross and Net weight. These pictures will be used by Salesperson to provide the Customer with the proof of completing production and requesting final payment. If the goods were shrink wrapped, Purchasing Person has to request pictures of shrink wrap as well to make sure shrink wrapping was done.
For India: in addition to receiving final pictures of shippers, it is better to also request pictures of the actual product inside.
Finished Product Pictures must be saved in the following folder on the server (and corresponding India file server): Z:\Shared drives\AdvaCare Purchase India Control\AdvaCare Purchasing\Orders\Shipping Documents"SOXXXX - CLIENT CODE"\FOR CLIENT\Finished product pictures
Along with the previous two points, Purchasing Person must ask the Vendor to send 2 packs of each finished product to the office. These samples are called QC Samples because these samples will be used to carry out QC process. QC process implies that every sample received will be checked carefully - packaging specifications, quality of the actual product, any visible damage or dirt, efficacy, etc.
Final payment to Vendor is never to be made before QC samples are received, checked and confirmed by Salesperson via task.
As receiving physical samples will take some time, Purchasing Person must urge the Vendor to send them out as soon as possible if the Vendor wants to get paid final payment.
Once Purchasing Person receives QC samples in the office, Purchasing Person has to follow the SOP “Handling QC from PO”.
If QC samples reveal a problem with the final product, Salesperson will send a task and request either compensation or re-producing. In case reproducing is required, final payment to the Vendor is not to be made until reproducing is finished and new set of QC samples are received in the office.