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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.
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.
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.
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.
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.
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.
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.