# Procurement Policy

**Organisation:** [Your Company Name]
**Document owner:** [Role / Department]
**Version:** 1.0
**Effective date:** [DD/MM/YYYY]
**Next review:** [DD/MM/YYYY]

> Free template from Lapasar Mall (https://www.lapasarmall.com/resources). Edit the placeholders in brackets to fit your organisation. Nothing here is specific to any platform.

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## 1. Purpose

This policy sets out how [Your Company Name] purchases goods and services. It exists to ensure that spending is controlled, value for money is achieved, suppliers are treated fairly, and every purchase can be justified and audited.

## 2. Scope

This policy applies to all employees, contractors and anyone else authorised to commit [Your Company Name] to expenditure. It covers all purchases of goods and services except [list exclusions, e.g. payroll, statutory payments, rent].

## 3. Principles

All procurement must follow these principles:

- **Value for money** — the best combination of cost, quality and service, not simply the lowest price.
- **Transparency** — decisions are documented and can withstand scrutiny.
- **Fairness** — suppliers are treated equally and without bias.
- **Integrity** — no conflicts of interest, gifts or inducements influence decisions.
- **Compliance** — all purchases follow this policy and applicable law.

## 4. Roles and responsibilities

| Role | Responsibility |
| --- | --- |
| Requester | Raises a purchase requisition with a clear justification and budget code. |
| Budget owner | Confirms budget availability and business need. |
| Approver | Approves within their authority limit (see Section 5). |
| Procurement | Sources suppliers, negotiates, raises purchase orders and keeps records. |
| Finance | Matches invoices to POs and goods received, and pays approved invoices. |

## 5. Approval authority thresholds

No purchase may proceed without approval at the correct level. [Adjust these bands to your delegation of authority.]

| Purchase value (RM) | Minimum approval | Quotes required |
| --- | --- | --- |
| Up to [1,000] | Line manager | None |
| [1,001] – [10,000] | Department head | 1 written quote |
| [10,001] – [50,000] | [Senior manager] | 3 written quotes |
| Above [50,000] | [Director / committee] | Formal RFQ / tender |

## 6. Supplier selection and evaluation

- Suppliers are selected on value for money against defined criteria (quality, delivery, price, service, compliance).
- New suppliers must complete onboarding and due diligence before their first order.
- Supplier performance is reviewed [quarterly / annually] using a vendor scorecard.

## 7. Ethics and conflicts of interest

- Staff must declare any personal or financial interest in a supplier.
- Gifts or hospitality above a nominal value must be declared and may not be accepted where they could influence a decision.
- Bribery, kickbacks and collusion are strictly prohibited.

## 8. Records and audit

- Every purchase must be traceable from requisition through approval, purchase order, goods receipt and invoice.
- Procurement records are retained for [X years] in line with [Your Company Name]'s retention policy.

## 9. Non-compliance

Purchases made outside this policy (maverick spending) may not be reimbursed and may result in disciplinary action.

## 10. Review

This policy is reviewed at least annually by [Document owner] and updated as the business changes.

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*Adapt this template freely. For automated requisitions, approvals, budgets and PO records, see https://www.lapasarmall.com*