This policy procedure sets out how suppliers are appraised and purchases approved, the checks on goods and services received, and how outsourcing is reviewed, contracted and controlled.

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This policy template is supplied in fully editable MS Word format and can be easily customised and edited. The document uses pre-defined style formatting throughout, with all text in Calibri font for improved readability.
The following document labelling is included in the footer:

• Policy number and title
• Information-classification
• Version
• Page number / total pages

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Further Reading

Further guidance on purchasing and outsourcing:

• Purchasing and Supplier Management
• Sustainable Procurement
• ISO 37001 Clause 8.3 - Financial Controls
• Management Systems knowledge base

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Purchasing and Outsourced Services Policy Procedure Template

The Purchasing and Outsourced Services Policy Procedure is a Word template that sets out how a business controls procurement and the outsourcing of activities to third parties. It covers supplier appraisal, purchasing controls with a table of purchase limits, checks of goods and services, CE and UKCA marked construction products, counterfeit items, outsourcing review, risk and continuity, partner selection, contracts, ongoing control and supplier information security.

It adds detail to IMS1 4.2 Control of Purchasing and Outsourced Services, with Title, File Location, Issue No, Issue Date, Controlled By and Approved By fields, an Amendment Record and a Business Use information classification in the footer.

What the Policy Covers

• Summary, scope and applicability - why purchasing and outsourcing need controls, a definition of an outsourced activity and who must follow the policy
• Statement of intent and supplier appraisal - approval and monitoring of suppliers, appraisal before ordering, licences and insurance, and the environmental, safety, continuity, security and bribery risks considered
• Purchasing controls and controls table - authorised buyers, purchase orders and cards, and a table of purchase limits setting the quotes, due diligence and approval needed at each level
• Checks of goods and services - inspecting incoming goods against specification and delivery note, quarantining issues, checking services were delivered and checking marking on construction products
• Counterfeit and fraudulent items - not buying counterfeit, fraudulent or suspicious items, and quarantining and reporting any item a worker has concerns about
• Review and selection of outsourcing - reviewing the case for outsourcing, assessing risk and continuity impact, and selecting a partner on experience and capability with a trial where possible
• Contracts and control of outsourced services - contracts covering supply and data transfer, ongoing checks, sampling and audits of partners, and agreed information security requirements for suppliers

Built for Controlled Purchasing and Outsourcing

• A purchase limits table setting the number of quotes, due diligence and approval needed at each order value
• Top management approval for higher value purchases, with anti-bribery function review at the highest levels
• Continuity impact assessed for the case where an outsourced supplier stops providing its service immediately
• Outsourcing partners put through the full supplier approval process once selected
• Information security requirements agreed and documented with suppliers who access or store company information

Who Needs a Purchasing and Outsourced Services Policy Procedure?

Businesses that buy goods and services from approved suppliers or outsource parts of their operations, including those that want bribery due diligence and approval levels built into purchasing decisions.

Included in the ISO 37001 Toolkit

This policy is part of the ISO 37001 Toolkit and the integrated toolkits that include it.

Using the Policy

Set the purchase limits and approval levels in the controls table to suit your business, and edit who is authorised to buy and how outsourcing reviews are recorded. Name the person in the Controlled By field, give it top level approval and brief everyone involved in purchasing.

Related Documents

For the bribery risk side of choosing suppliers, see GG-1-19 Anti-Bribery Supplier Selection Guidance, with TT-1-19 Anti-Bribery Supplier Selection Training Talk for briefing the staff involved.