Corporate Purchasing Policy
STATEMENT OF POLICY
The policy of Eastman Kodak Company is to obtain the best value for the materials, goods, and services that it purchases from, and to maintain the highest ethical standards in dealing with, its suppliers. Value includes price, quality, and service.
On a worldwide basis, purchased goods and services are Kodak's largest expense area. Therefore, it is imperative that Kodak use its purchasing leverage to ensure that goods and services are procured at the lowest cost, highest quality, and optimal service, including delivery.
Purchasing Departments are the sole authorized agencies of Kodak and its subsidiaries for the procurement of materials, goods, and services. All buying, including commitments to buy and related activities, will be handled by the Purchasing Departments.
||Purchasing needs arise in a variety of contexts. In some cases, the company unit with a purchasing need may wish to engage prospective suppliers in preliminary discussions. In other cases, the company unit may decide to ask Purchasing to deal with prospective suppliers. In no case should a company unit commit the company to a purchase without involving the appropriate Purchasing Department.
||Approved purchasing processes must be used in every case, to ensure that the supplier is selected objectively. Frequently, competitive bids will be used in order to obtain best value.
||Approved contracts, developed by Purchasing and the Legal Department, including approved templates or Kodak purchase orders, will be used wherever possible to ensure that the company’s (i) interests are fully protected and (ii) purchasing initiatives are appropriately implemented. Forms provided by suppliers should be used only in exceptional circumstances, and only with the prior approval of Purchasing or the Legal Department. Letters of Intent, which are by definition non-binding, are discouraged, and should not be used without the prior approval of Purchasing and the Legal Department.
||Purchasing will provide details to the Controller’s Division of contracts or purchase orders obligating Kodak to unique financial arrangements as required by the Controller in support of compliance audits.
||Purchasing is responsible for managing the financial and administrative aspects of contracts and purchase orders; the Kodak business or beneficiary unit is responsible for managing the operational aspects.
Only employees specifically authorized may sign purchase agreements on behalf of the company. Agreements signed by unauthorized personnel, as well as oral commitments, compromise the company's ability to control the process by which it incurs obligations, and expose the company to unnecessary risks.