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1.0 PURPOSE
1.1 The purpose of these instructions is to outline how the procurement department evaluates
suppliers to be included in the list of approved suppliers and when tendering for goods or services.

2.0 SCOPE

2.1 This procedure covers supplier pre-qualification which is carried out as part of the due diligence
process to evaluate suppliers that have submitted an Expression of Interest before they are
included in EABL’s list of approved suppliers.

3.0 REFERENCES
Procurement Procedures Manual
Stores Manual
Approved Supplier’s List
Materials Specifications Manual
Occupational Health and Safety Policy
Environmental Policy
Diageo Code of Conduct

4.0 DEFINITIONS
Item: Material/Product/Service required by EABL
Contact: The address at which a supplier can be reached
H-GP Head of Group Procurement
LPO: Local Purchase Order
PM: Category Procurement Manager
PR: Purchase requisition
RFQ: Request for quotation
SSE: Supplier Service and Escalation
SSC: Shared services centre
Supplier Organization that provides a product or service to EABL
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5.1.0 Supplier pre-qualification

5.1.1 Overview

Supplier
Identification
process

Applicant
Prequalification
completes pre-
questionnare
qualification
questionnare

Applicant’s
Procurement
Prequalification
Controller reviews
questionnaire
questionnaire

Assess No
Regret
further
?

Yes

Site visit report

Site vist
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PM considers No
Regret
Site appropriate
?

Yes

Supplier creation SSC adds supplier

form to Maximo on H- Maximo
GP’s approval

Contract or
Send LPO to
supplier

5.1.2 An SSE / Procurement Controller invites the applicant to collect a prequalification

questionnaire. The questionnaire requests for information on:
• the applicants details;
• details of products and/or services the applicant is seeking to provide;
• applicants organisation structure and ownership;
• applicants quality management policy and any quality certifications held e.g. ISO
certification;
• whether the applicant is an agent, broker, stockist, or manufacturer of the product;
• contracts undertaken by the applicant over the last two years;
• environmental, ethics and occupational health and safety policies; and
• audited financial statements for the last three years - mandatory.
A sample prequalification questionnaire is provided in the appendices.

5.1.3 The Procurement Controller responsible analyses the questionnaire completed by the
applicant to determine suitability of the supplier. At this stage the analysis is focused on
the applicant’s financial position, track record and past experience and commonality as
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regards quality, environment, health and safety standards compliance. The Procurement
Controller should apply judgement based on the value and criticality of the items the
applicant would like to provide. A report detailing the analysis results is made.

5.1.4 If based on analysis of the questionnaire the Procurement Controller finds the applicant
suitable, he should seek the PM’s approval to carry out a site visit. Otherwise, the
Procurement Controller arranges for a letter of regret to be sent to the applicant.

5.1.5 Site visits need to be carried out by a representative of the purchasing department
(Procurement Controller, or SSE), representative of the Quality assurance department (in
the case of production materials) and a representative of the user department. During the
site visit the survey team evaluates the:
• location of the suppliers business premises;
• whether the applicant is duly registered and licensed;
• competence of management and applicants technical skills;
• source of the suppliers goods;
• condition of the suppliers premises and production process including storage facilities
and health and safety provisions;
• state of machines in use and assessment of their production capacity;
• ethical and environmental conditions; and
• existence of standard quality compliance programs

5.1.6 If the applicant seeks to provide production materials the PM may require a sample of the
product to be tested by Quality Assurance Management.

5.1.7 The survey team prepares a report on the visit detailing their findings and recommending if
the applicants should be registered as a supplier. All members of the survey team are
required to sign off the report. The team submits the survey report to the PM and H-GP for
review. The H-GP makes the final decision on whether to adopt the supplier.

5.1.8 The Procurement Controllers should file all the documents (pre-selection questionnaire,
site visit report) used to support adoption of the suppliers.

5.1.9 After the H-GP’s approval the applicant will be asked to submit a bid.
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5.1.10 A supplier who is pre-qualified to provide a particular item, category of products, or

services will not be used to provide any other item, goods or services.

5.1.11 If there is need to use a supplier to supply a category for which the supplier was not
originally pre-qualified, such a supplier will be pre-qualified afresh.

5.1.12 While it is desirable to subject all suppliers to this prequalification procedure, it may not be
practical to apply the procedure to some suppliers. This will mainly be suppliers who are
the only providers of the item, local authority service organisations, international
governmental and government bodies / Departments. When selecting such suppliers, the
PM responsible for the goods to be procured will have to recommend exemption of the
supplier from prequalification. The category PM will document reasons for the exemption
and the documentation will be approved by the H-GP.