Standard Procurement Procedures
Standard Procurement Procedures
Flowchart of Standard Procurement Procedures
1.Introduction of Products to be Supplied
Suppliers who wish to establish a business relationship with J-POWER/EPDC are requested to notify J-POWER/EPDC by submitting the Corporate Profile and Product Description, which give J-POWER/EPDC an outline of the supplier's company and products, to the contact point by mail or E-mail.
After examining the forms submitted, J-POWER/EPDC makes a preliminary assessment as to whether the products are of interest to J-POWER/EPDC and files the information in a database. The database is then referred to during the procurement process. J-POWER/EPDC may request the suppliers to submit more documents or make a presentation.
J-POWER/EPDC considers the following factors important for procurement of power equipment products:
Sales Points to be Considered
|Quality and Price||Delivery||After-sales Service|
2.Manner of Procurement
J-POWER/EPDC generally procures products competitively through selective tendering procedures. In selective tendering procedures, J-POWER/EPDC invites two or more qualified suppliers from our internal database of suppliers to offer their tenders for the product concerned.
However, in cases where the product has special characteristics such as having a patent or research-and-development status, or is for repairs, retrofitting or replacement of parts, or is for emergency-use, only one supplier may be requested to submit a tender.
3.Selection of Prospective Tenderers
During selection of prospective tenderers, J-POWER/EPDC takes into consideration technical reasons, characteristics of the procurement product and supply records of the prospective suppliers, financial position, etc. for each procurement process. In the prequalification process, J-POWER/EPDC uses information submitted and the internal database. In addition, J-POWER/EPDC may request the prospective suppliers to fill-in and submit J-POWER/EPDC's questionnaire,to accept J-POWER/EPDC's personnel for a visit to the supplier's factory, etc.
4.Invitation to Tender
When inviting tenderers to submit tenders for cost and technical proposals, J-POWER/EPDC provides prospective tenderers with technical specifications, contract conditions and related information so that they can prepare their tenders.
5.Receipt and Evaluation of Tenders
J-POWER/EPDC evaluates tenders submitted as to whether they satisfy the requirements previously established by J-POWER/EPDC.
After evaluation, J-POWER/EPDC determines the most advantageous tender.
6.Contract Negotiations and Award of Contract
J-POWER/EPDC negotiates contract conditions with the tenderer who submitted the most advantageous proposal. After reaching an agreement, the tenderer is determined as the successful tenderer("contractor").
Agreement is made in the form of a purchase order and acknowledgment thereof or a contract form.
Contract conditions are principally based on the drafts provided at the invitation to tender, but minor modifications may be allowed at the contract negotiations, if necessary.
7.Delivery and Acceptance of the Product and Payment
The product is subject to acceptance upon inspection for the requirements in accordance with contract documents. Payment is generally made in the end of month following acceptance. However, under some conditions, such as when a long lead time is required to manufacture the product, payment by installments may be made.
For more information, please refer the pages below.
- Basic Policies for Product Procurement
Our basic policy for product procurement such as openness, fairness, economic rationality, long and reliable partnership, and law abiding.
- Major Procurement Items
The information about our products to be procured.