The purchasing procedures of Kyushu Electric Power begin when any materials division accepts a request for the purchase of materials and equipment from Kyushu Electric Power.
- Selection of Potential Suppliers From Among the Registered Prospective Suppliers
In principle, Kyushu Electric Power selects potential suppliers from among its list of registered prospective suppliers. The selection takes the following conditions into consideration; the technical evaluation of the quality and performance of the product to be procured, product compatibility with the existing equipment, production capacity of the supplier, stability and reliability of delivery, after-sales service and troubleshooting capability, and the track record of previously supplied products.
In principle, this selection is made through a comprehensive and competitive evaluation process involving a number of applicants that Kyushu Electric Power selects from its list of registered prospective suppliers. When a particular potential supplier must be chosen, however, because of reasons involving such as patent rights, research and development issues, time factors, or the need for compatibility with the existing facilities, Kyushu Electric Power shall select a single potential supplier without going through the comprehensive and competitive evaluation process.
- Request for Estimates
When requesting estimates, Kyushu Electric Power shall indicate in an open and fair manner the technical specifications that potential suppliers need to make their estimates.
- Submission of Estimate and its Specifications
An estimate and its specifications must be submitted before the deadline set by Kyushu Electric Power.
When a technical examination of the specifications is necessary, Kyushu Electric Power conducts the evaluation prior to unsealing the estimate. If the evaluation attests that the specifications and the terms of delivery meet Kyushu Electric Power's requirements, the estimate is deemed valid.
However, when your estimate is based on specifications that differ from those requested by Kyushu Electric Power, it will be deemed valid only if the alternative specifications are judged to be advantageous to the Company.
- Price Negotiation and Supplier Selection
From among the companies who submit valid estimates, Kyushu Electric Power conducts negotiations with the potential supplier who is evaluated as the best and thereby determines a contract price and selects a supplier.
- Contract Conclusion
A contract is concluded in writing and in compliance with the terms prescribed by Kyushu Electric Power. When necessary, however, a contract may be drawn up in accordance with terms and conditions discussed and agreed upon by Kyushu Electric Power and the supplier.
- Delivery and Examination of Products
Kyushu Electric Power conducts an examination to determine if the delivered product meets the conditions the Company specifies.
In order to simplify the process of quality assurance and the examination of products upon delivery, the manufacturing process and quality control system of items for which quality is of particular importance and those which Kyushu Electric Power purchases regularly in large quantities, for example, distribution-related products, may be subject to on-site examinations as the need arises.
- Payment
Delivered products which pass the prescribed examination will be paid for at the end of the following month.
Under special circumstances, for example, if the manufacture of the product takes an unusually long time, other payment schedules may be arranged based on a separate contract.
- Others
| (1) |
The classified information that both sides come to possess through transactions must not be disclosed to a third party without written consent from both sides. |
| (2) |
The delivery date must be strictly obeyed. According to the terms of the contract, when the delivery of a product that has a serious impact on the supply of electric power is delayed, Kyushu Electric Power may claim indemnities for the delay. |
| (3) |
When a dispute arises concerning a contract, the matter shall be dealt with according to the statutory requirements under Japanese low and handled exclusively by a competent court in Fukuoka City. |
| (4) |
In order to secure our better understanding of your products and services, it is recommended that your presentation and communications, both oral and written, be made in the Japanese language. |
| (5) |
If you have any opinions or requests concerning any stage of the procurement procedure, please feel free to contact the Materials Procurement Planning Group of the Operation Division of the Head Office. |
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