O'Reilly logo

The AMA Handbook of Due Diligence by Andrew J. Sherman, William M. Crilly

Stay ahead with the world's most comprehensive technology and business learning platform.

With Safari, you learn the way you learn best. Get unlimited access to videos, live online training, learning paths, books, tutorials, and more.

Start Free Trial

No credit card required

ENTITY Form 12-09
293
REF.
PREPARED BY REVIEWED BY
REVISION DATE SECTION PAGE
PURCHASING ACTIVITIES
ACTIVITY PRIMARY
RESPONSIBILITY
(1)
PERFORMED
BY:
(2)
Recommend and obtain approval of purchasing objectives.
Establish purchasing system and procedures.
[ ] Establish separate requisition review procedures for each
class of material.
[ ] Establish strict guidelines for the use of open purchase orders
by nonpurchasing personnel.
[ ] Maintain performance records on key suppliers.
[ ] Hold periodic meetings with key suppliers to review
performance and potential cost reduction opportunities.
[ ] Establish competitive bidding procedures.
[ ] Split orders between two or more qualified suppliers if there is
not a significant financial penalty.
[ ] Establish early warning system for delivery slippages.
[ ] Obtain periodic financial statements from key suppliers.
Qualification of potential new suppliers.
[ ] Investigate facilities.
[ ] Contact existing and previous customers for comments on
quality, reliability and service.
[ ] Check initial deliveries from new suppliers.
Prepare purchasing performance reports for upper management.
Notes: (1) Place “X” in this column if function performed by Purchasing organization.
(2) Enter name of organization performing this function, if not performed by Purchasing organization.
ENTITY Form 12-10
REF.
PREPARED BY REVIEWED BY
REVISION DATE SECTION PAGE
294
AVAILABILITY OF MATERIALS AND SUPPLIES
TEN LARGEST DOLLAR VOLUME PURCHASES
MATERIAL/SUPPLIES PRIMARY SUPPLIERS APPROXIMATE
ANNUAL
PURCHASES
($000)
FUTURE
AVAILABILITY
(1)
[ 1] $
[ 2]
[ 3]
[ 4]
[ 5]
[ 6]
[ 7]
[ 8]
[ 9]
[10]
Total For Ten Largest Material Purchases $
Percent Of Total Material Purchases %
Note: (1) Examples: Readily Available, Occasional Shortages, Frequent Shortages, or Critical Shortages.
ENTITY Form 12-11
295
REF.
PREPARED BY REVIEWED BY
REVISION DATE SECTION PAGE
IDENTIFICATION OF CRITICAL MATERIALS AND SUPPLIES
TEN MOST CRITICAL
MATERIALS AND/OR
SUPPLIES
APPROXIMATE
ANNUAL PURCHASES
($000)
SUBSTITUTE MATERIAL
WITHOUT
DESIGN CHANGES (1)
SUBSTITUTE MATERIAL
WITH
DESIGN CHANGES (2)
[ 1]
[ 2]
[ 3]
[ 4]
[ 5]
[ 6]
[ 7]
[ 8]
[ 9]
[10]
Notes: (1) Indicate substitute material and approximate percentage price change.
(2) Indicate substitute material, approximate percentage price change and estimated redesign cost, if
known.
ENTITY Form 12-12
REF.
PREPARED BY REVIEWED BY
REVISION DATE SECTION PAGE
296
PRICE TRENDS FOR PURCHASED MATERIALS AND SUPPLIES
TEN LARGEST DOLLAR VOLUME PURCHASES PER FORM 12-10
MATERIAL/SUPPLIES AVERAGE ANNUAL
PRICE CHANGE
LAST
THREE YEARS
PRICE CHANGE
LAST
TWELVE MONTHS
ESTIMATED
PRICE CHANGE
NEXT
TWELVE MONTHS
[ 1] % % %
[ 2]
[ 3]
[ 4]
[ 5]
[ 6]
[ 7]
[ 8]
[ 9]
[10]
Note: Indicate an increase with a plus sign (+), and a decrease with a minus sign (-), followed by the percentage
change.
ENTITY Form 12-13
297
REF.
PREPARED BY REVIEWED BY
REVISION DATE SECTION PAGE
CHARACTERISTICS OF MAJOR SUPPLIERS
TEN LARGEST DOLLAR VOLUME SUPPLIERS
SUPPLIER APPROXIMATE
ANNUAL DOLLAR
VOLUME
($000)
MATERIALS SUPPLIED NEAREST
DISTRIBUTION
CENTER
(CITY / MILES)
[ 1] $
[ 2]
[ 3]
[ 4]
[ 5]
[ 6]
[ 7]
[ 8]
[ 9]
[10]
Total Ten Largest Suppliers $
Percent Of Total Materials %

With Safari, you learn the way you learn best. Get unlimited access to videos, live online training, learning paths, books, interactive tutorials, and more.

Start Free Trial

No credit card required