The following policies apply to all goods and services procured by Amgen:

• Except as specifically set forth in an agreement with Amgen, purchase orders and Amgen purchasing cards (P-Cards) are the only approved methods Amgen uses for procuring goods and services.
   
• Amgen’s standard terms and conditions apply to all goods and services procured by Amgen unless agreed to otherwise by Amgen.
   
• Goods may not be shipped and work may not begin until an agreement has been entered into between Amgen and the supplier.
   
• When required by Amgen, a signed acknowledgement copy of the PO must be returned to Amgen before work may begin.
   
• Amgen only pays for materials and services specified on the PO. Amgen does not pay for goods shipped in excess of the specified quantity or for work that is not specified on the PO.
   
• Changes to specification (quantity, price, delivery, scope of work, etc.) must be approved by Amgen’s Global Strategic Sourcing (GSS) department via an approved change order or contract amendment.

Electronic Procurement

Amgen uses an electronic network to distribute Amgen POs electronically to registered suppliers. This paperless system benefits both Amgen and suppliers by being cost effective through reduction of labor, mail, and paper costs in addition to being faster than paper processing. To start electronic PO service, suppliers register on the system and pay an annual fee to the third party service provider. No special software is required and suppliers may select the method that POs are transmitted to them.

If Amgen elects to transmit POs electronically, suppliers will be invited by Amgen to register with the electronic system provider.

Purchasing Card (P-Card) Program

As an alternative to the use of POs for certain types of low-dollar, high-frequency purchases, some Amgen staff members have been issued Amgen purchasing credit cards (P-Cards). The P-Card is limited to certain categories of purchases and to a limited number of approved suppliers.

The benefits of this program are lower transactional costs and faster payment to our suppliers.