Document No.: FN-PUR-023
Revision No.: 1
By accepting this Purchase Order as a Supplier to TOWAM SDN. BHD. (hereinafter
called “TOWAM”), you agree to comply with the additional terms and conditions
listed below with respect to any product or services provided to TOWAM.
2. CONTROL OF DRAWINGS & SPECIFICATIONS
The Supplier shall ensure that the drawings and specifications are the relevant
revision status specified on the Purchase Order. The Supplier shall comply with any
special requirements requested by TOWAM.
3. QUALITY/INSPECTION SYSTEM
Supplier shall maintain a quality/inspection system that will ensure all goods and
services conform to contract requirements whether manufactured or processed by
Supplier or procured from Sub-Tier Suppliers.
4. REPORTING DISCREPANCIES
Discrepancies, omissions, and the need for clarifications or interpretations of any
nature encountered by Supplier in respect of furnished drawings or engineering
data will be brought to the attention of TOWAM for resolution.
5. CALIBRATION SYSTEM
All Inspection Measuring & Test Equipment used by the Supplier during in-process
and final inspection to make a compliance evaluation shall be calibrated to the ISO
6. SPECIAL PROCESSES
Supplier shall provide support documents for all special processes and
nondestructive test results performed with each shipment. Supplier used shall be a
TOWAM and/or Customer approved source for said Processes. These include
operations subject to process controls such as: surface treatment, heat treatment,
welding, etc. The Supplier shall be approved as per above to perform specific
required Special Processes, or use Special Process vendors acceptable to TOWAM
and TOWAM’s customer.
7. MATERIAL SUBSTITUTION / PRODUCT DISCONTINUANCE
Unauthorized material substitutions are not permitted without TOWAM’S written
consent. TOWAM must be notified of all product discontinuance and product
changes. TOWAM must receive all product discontinuance notifications (EOL or
Obsolescence) a minimum of 6 months prior to the last time buy date.
8. CHANGES IN PROCESS, PRODUCT OR LOCATION
Supplier shall notify TOWAM of intended or actual changes that may affect the
quality of delivered goods and services. This includes: Changes to the Quality
Management System, the Manufacturing Line, Facility Location, Processes, or
Natural Disasters. Quality data and/or approved design data to be available in the
9. WORKMANSHIP QUALITY
Manufactured product shall be free from burrs, and sharp edges. Cosmetic issues
caused by manufacturing or special processes must be identified. Supplier is
responsible for the cost of product damaged due to mishandling by the supplier.
10. LIMITED SHELF LIFE ITEMS
Materials with limited shelf life shall indicate the date of manufacture, lot number
and applicable specification on the container.
11. CERTIFICATE OF CONFORMANCE
Suppliers acceptance of TOWAM’S Purchase Order certifies that the materials and
processes supplied under the Purchase Order shall be or have been controlled and
inspected in accordance with TOWAM’S Purchase Order and they meet the specified
order requirements, referenced specifications and drawings.
The Buyer may by way of a written order make changes to the quantities, drawings,
designs, specifications, method of shipping, packing and/or place of delivery. Any
increase or decrease in the costs or time for performance shall be quoted by the
Seller within 7 working days of receipt by the Seller of the notification of change.
13. NONCONFORMING PRODUCTS AND MATERIAL
Supplier shall obtain TOWAM prior written approval with respect to the disposition
of any nonconforming products or materials supplied, that does not meet
engineering drawing or documents under contract or Purchase Order. In the event
that nonconforming materials are present, and the materials are deemed acceptable
or useable by the Supplier, it is still the responsibility of the Supplier to inform
TOWAM so that a determination can be made for the use of said materials. TOWAM
has the right to reject parts and withhold payment if non-conforming parts are
shipped without notification. Supplier is responsible for the total cost of product
rejected due to non-conformance by the supplier. When a nonconformance is
determined to exist, or is suspected to exist on goods and/or services already
provided to TOWAM under Purchase Order Contract, Supplier shall provide written
Post Delivery Notification Letter or Letter of Disclosure within 2 working days.
14. RIGHT OF ACCESS
TOWAM, its customers, and regulatory authorities shall be granted the right of
access to all Supplier and sub-tier Supplier facilities and records involved in fulfilling
the Purchase Order conformance with the requirements.
15. RECORD RETENTION
Supplier shall maintain records of inspections, tests, and process controls called for
by the contract or Purchase Order. Unless specified elsewhere in contracts,
customer flow down requirements or attachments, these documents shall be on file,
stored and protected in such a manner that they remain legible readily identifiable,
and readily available to TOWAM for 5 years.
16. COUNTERFEIT PARTS
The Supplier shall certify that only new and authentic materials are used in
products or goods delivered to TOWAM and that the products/goods delivered
contain no Counterfeit Parts.
17. FOREIGN OBJECT DEBRIS/DAMAGE
Supplier is required to establish and maintain a Foreign Object Debris/Damage
(FOD) prevention program that employs appropriate housekeeping practices to
assure timely detection and removal of residue/debris generated, during operations
and normal daily tasks. Parts supplied shall be free from oil, grease or any other
FOD unless part requires said oil in order to avoid corrosion.
18. SUPPLIER CORRECTIVE ACTION
Supplier shall, on request, provide statements of corrective action on
nonconformities or failures of Suppliers goods or services.
19. PRODUCT SAFETY
a. The complete TOWAM Purchase Order Number must appear on all invoices,
packing list, labels and correspondence.
b. The part number, revision, manufacturer, manufacturer’s part number and
quantity must be on the packing list and packaging accompanying the parts and
must match the PO exactly.
c. Any marking on the product or packaging must be legible.
20. PACKAGING AND HANDLING
As a minimum, the Supplier shall package all material in a manner that will ensure
protection against corrosion, oxidation, deterioration and physical damage during
shipment. If required, oil must be placed on certain material to prevent corrosion.
Electrostatic sensitive product shall be packed in an ESD protective bag. In addition,
when materials delivered are lot-controlled and multiple material lots are shipped
each lot shall be separately packaged and identified.
21. FLOW DOWN TO SUB-TIER SUPPLIERS
Suppliers shall flow-down to Sub-tier Suppliers the applicable requirements as
required by the Purchase Order either specifically or by reference.
22. CONFIDENTIALITY & ETHICAL BEHAVIOUR
Suppliers shall hold all information received from TOWAM in confidence and no
third-party request for information will be authorized unless approved, in writing, by
TOWAM. We expect our suppliers to comply per FN-PUR-019 (Non-Disclosure
23. CODE AND CONDUCT
TOWAM is committed to upholding high standards of ethics, integrity and
corporate social responsibility in our business operations. In part, this is
demonstrated through our membership in the Responsible Business Alliance (RBA)
to ensure working conditions in the electronics supply chain are safe, that workers
are treated with respect and dignity and that business operations are
We expect our suppliers to comply with TOWAM Supplier Code of Conduct as above.
TOWAM suppliers are responsible for ensuring that its personnel are aware of their
contribution to product or service conformity, product safety and importance of
ethical behavior. Suppliers will support product safety by ensuring standard
practices and adhering to requirements of critical items, key characteristics and
special requirements. Suppliers must be committed to high standards of ethics and
business conduct by complying with all regulations and policies.
Counterfeit Product means an unauthorised copy, imitation, substitute, or modified part (such as but not limited to material, part or component), which is misrepresented as a specified genuine part of an original or authorized manufacture.
Foreign Object Debris/Damage means a substance, debris or article alien to the Product which would potentially cause damage(Foreign Object Damage ) being any damage attributed to a foreign object that can be expressed in physical or economic terms that may or may not degrade the product's required safety and/or performance characteristics.
Product(s) means all goods and/or services detailed on the Purchase Order.
Purchase Order means the purchase order sent by TOWAM to the Supplier by e-mail, facsimile or mail or delivered by hand and any listed attachments including but not limited to TOWAM Terms and Conditions of Purchase and these Terms and Conditions of Purchase for Aerospace Product which together make up the contract between TOWAM and the Supplier.
Quality Records means any and all documentation that provide objective quality evidence including but not limited to documentation accompanying the Product, raw material process certification, material certification, shelf-life certificate, special process certification, test reports, certificate of conformity, inspection and test documentation, statistical documentation, process control documentation results of production process verification and any other quality assurance document as reasonably requested by TOWAM.
Sub-tier Supplier means any entity that supplies materials, parts, components or services to the Supplier for use in the Products.
Supplier means the person or company on whom the Purchase Order is placed.
Refer TERMS AND CONDITIONS OF PURCHASE