PROCUREMENT GUIDELINES
These guidelines contain General Procurement Guidelines and Supplier Accreditation and Disciplinary Measures for Erring Suppliers of the Materials Management Department (MMD) whose primary objective is to provide effective Planning, Procurement, Inventory, Logistics and Monitoring of commodities and services in support of the operating units of ACEN and its subsidiaries.

GENERAL PROCUREMENT GUIDELINES FOR THE AC ENERGY PHILIPPINES GROUP

  1. All procurement activities such as canvassing, evaluation and awarding of bids, procurement and/or purchase commitments shall be vested with the Materials Management Department (MMD). The MMD shall, in close coordination with its internal customers and guidance of Management, purchase the best and the right quality of materials, supplies and equipment at the lowest possible cost, delivered at the right time and place, and with the most favorable payment terms.
  2. The ACEN Group will deal only with licensed, reputable, reliable, competent and responsible suppliers who passed the pre-qualification requirements of the company. In order to ensure availability of economical and superior materials, supplies and equipment, the company shall preferably deal with procedures, manufacturers, exclusive or franchised distributors, direct importers and authorized dealers.
  3. All deliveries or incoming shipments must be accepted on the basis of confirmed POs and PRs. It should be joint responsibility of the warehouseman and the requisitioner to check that each item received is in accordance with the prescribed PO/PR. Discrepancies, damages and incorrect specifications should be brought to the immediate attention of the MMD who will be tasked to advice suppliers to rectify their delivery shortcomings through a written reject Materials Report.
  4. Supplier performance shall be monitored regularly and corresponding sanctions such as written warnings, suspension and blacklisting will be applied correspondingly depending on the gravity of the situation. Supplier Guidelines will be issued to all accredited and new suppliers and transparency and due process will be equally applied to all. The list of delisted suppliers will be circularized to all concerned.
  5. A formal letter is warranted under the following circumstances:
    a. Request for extension of deadlines for quotations
    b. Change in price quotation, specifications, etc.
    c. Cancellation of Purchase Order
    d. Request for extension of delivery date.

SPECIAL REMINDERS TO SUPPLIERS

Materials Management reminds all suppliers regarding the BIR requirement under the National Internal Revenue Code of the Philippines which states that the following shall be indicated in VAT invoice or VAT official receipt:

  1. A statement that the seller is a VAT- registered person, followed by his TIN
  2. The total amount which the purchaser pays or is obligated to pay to the seller with the indication that such amount includes the VAT; Provided, That:
    1. The amount of tax shall be shown as a separate item in the invoice or receipt;
    2. If the sale is exempt from VAT, the term “VAT exempt sale” shall be written or printed prominently on the invoice or receipt;
    3. If the sale is subject to zero percent (0%) VAT, the term “zero rated sale” shall be written or printed prominently on the invoice or receipt;
    4. If the sale involves goods, properties or services some of which are subject to and some of which are VAT zero-rated or VAT-exempt, the invoice or receipt shall clearly indicates the break-down of the sale price between its taxable, exempt and zero-rated components, and the calculation of the VAT on each portion of the sale shall be shown on the invoice or receipt. The seller has the option to issue separate invoices or receipts for the taxable, exempt, and zero-rated components of the sale.
    5. In the case of sales in the amount of one thousand pesos (P1,000.00) or more where the sale of transfer is made to a VAT-registered person, the name, business style, if any, address and TIN of the purchaser, customer or client, shall be indicated in addition to the information required in (1) and (2) of this Section.

 

FAQ

These are the questions that MMD usually encounters. Answers are provided to help our clients/customers understand the purchasing operations.

How can I be an accredited supplier?
Companies who wish to be included in the list of accredited suppliers shall accomplish and submit all documentation requirements such as Vendor Profile, Supplier Accreditation Form, Company Profile and Latest Audited Financial Statements and other related documents. They should also undergo actual visit / inspection of facilities by our staff and should undergo a probationary period of six (6) months. A yearly evaluation of suppliers will be conducted to determine their accreditation status.

When can I visit your head office? Your power plant?
Regular supplier visiting days for the head office are on Mondays, Wednesdays and Fridays, from 2:00 to 4:30 in the afternoon while for our Plant sites are on Thursdays, from 9:00AM to 3:00 PM. Transactions should be limited on these days except for urgent business matters.

Are there guidelines to be followed in sending our quotations?
All quotations must specify brand, country of origin, and delivery period. Failure to include this information may result to non-inclusion of bid. Quotations should at all times indicate whether prices quoted are VAT inclusive or exclusive. A separate quotation must be submitted for every RFQ received (one RFQ-one Quotation). RFQ number should be indicated in the formal quotation. If there’s no quote for some of the items in the RFQ, “NO QUOTE” should be indicated. If there is no quote for the entire requirement, the reason should be stated in the RFQ form and returned to MMD signed by the supplier’s authorized signatory with the company’s name written in the space provided. The quotation should be submitted on or before due date. Inability to quote within the specified period should be relayed to concerned buyer before due date.

What are your delivery procedures?
The PO clearly indicates delivery time of goods. For ex-stock items, the items should be delivered within 3-5 days. Late deliveries will not be tolerated (ex-stock or otherwise) unless reported in writing and only for justifiable reasons. PO number, PR number and buyer’s name should always be indicated in the invoices and delivery receipts. Goods should not be delivered without an approved PO and the accompanying invoices and delivery receipts. The company will not be responsible for the payment of goods delivered without the benefit of a signed PO. An exception is made for emergency requirements which may be delivered with proper authorization.
Also read the Invoicing Requirements in the Special Reminders page.

What are the disciplinary measures for erring suppliers?
Practices and activities which are detrimental to the best interest of the company will not be tolerated. Erring suppliers shall be subjected to sanctions, depending on the gravity of the misdeed. Blacklisting can be resorted to if the act was intentional and the company’s interest is severely damaged.

SANCTIONS

PRICE
Changing of quotations due to misquote
1st Offense – Written warning
2nd Offense – 3 months suspension
3rd Offense – 6 months suspension
4th Offense – Blacklisting
Overpricing if found to be excessive and intentional – Blacklisting

QUALITY

Intentionally supplying 2nd hand/surplus items being passed off as brand new – Blacklisting

Supplying replacement, fake/bogus parts and passing them off as genuine parts/units – Blacklisting

Intentionally supplying items of different brand lower in quality that what is specified in the Purchase Order – Blacklisting

Supplying materials and services with poor quality/workmanship and/or concealment of defective portions
1st Offense – 3 months suspension
2nd Offense – 6 months suspension
3rd Offense – Blacklisting

PROMPTNESS
Unjustified late deliveries of purchase order / item rewarded
1st Offense – Written warning
2nd Offense – 3 months suspension
3rd Offense – 6 months suspension
4th Offense – 12 months suspension
5th Offense – Blacklisting plus the max. 10% of the total Purchase Order amount

Inability to serve purchase orders awarded due to unjustified reason resulting to cancellation and re-awarding to other suppliers. For quotation stating ex-stock subject to prior sale, then MMD should be advised in writing of non-availability of stock within twenty-four (24) hours from date of receipt of approved order.
1st Offense – Written warning
2nd Offense – 3 months suspension
3rd Offense – Blacklisting

For indent purchases, Proforma Invoices should be submitted not later than 5 working days upon the receipt of approved order.
1st Offense – Written warning
2nd Offense – 3 months suspension
3rd Offense – 6 months suspension
4th Offense – 12 months suspension

OTHER MAJOR OFFENSES SUBJECT TO BLACKLISTING
Bribery – Blacklisting
Supplying false information or misrepresentation – Blacklisting
Unjustified refusal to replace products failing during warranty – Blacklisting