NNPC Limited Framework Agreement Process

Play an AI-generated podcast conversation about this lesson

What is the basis of measurement for the performance measure 'Timeliness of request process'?

Accuracy of the Purchase Order
Number of material errors, omissions, and misrepresentations in the purchase order
Frequency of Purchase Requisition (PR)
Latest date for completion of the request process (correct)

Who is responsible for performing goods receipt on ERP?

SCM Departmental Store (N-5/6) /Vendor
SCM (N-4/5) (correct)
Finance (N-4/5)
User Department (N-5/6)

What action does the User Department (N-5/6) take after receiving goods?

Collect Pro-forma Invoice (PFI) as per discounted terms and forward the copies of all relevant approvals to SCM (N-4/5)
Perform goods receipt on ERP
Create Purchase Order (PO) and call departmental store to pick up
Receive goods and carry out Audit Attestation & Quality Inspection at receiving bay and forwards to SCM(N-4/5) (correct)

What type of document is Financial Commitment Control Slip (FCCS) and AFE (assets)?

Input/Output (C) Signup and view all the answers

What is the main purpose of compliance with Stock Holding Policy?

To optimize stock at the most economic cost without compromising plant availability, health, safety, and environment (D) Signup and view all the answers

Who should hold adequate stock of materials in their warehouses for direct and immediate purchase when needed?

Competent local suppliers (C) Signup and view all the answers

What does the User Department (N-5/6) do after creating a Procurement Request?

Create PR and forward to SCM (N-4/5) (A) Signup and view all the answers

Under what circumstance would extra budgetary approvals be required?

If resources are not available to undertake the requests (D) Signup and view all the answers

What must be confirmed before sourcing new materials?

Stock availability or existence of a framework agreement (D) Signup and view all the answers

Who creates a Purchase Order (PO) and calls departmental store to pick up?

SCM (N-4/5) (D) Signup and view all the answers

What document should be collected if a Procurement Request is covered under an approved framework agreement?

Framework Agreement Document (FAD) (B) Signup and view all the answers

What is the main objective of the framework agreement process?

Reduced transaction cycle time and buying effort (A) Signup and view all the answers

When should framework agreements via call off contracts be negotiated?

When procuring goods and services required in large quantities but needed as at when needed (B) Signup and view all the answers

What does the framework agreement process enable NNPC Limited to do?

Negotiate bulk discounts and initiate purchase orders over a period with multiple supplies or deliveries from a single/multiple suppliers (A) Signup and view all the answers

What is one benefit of the supply of materials being secured over multiple delivery dates?

NNPC Limited does not have to hold excess stock at various sites (A) Signup and view all the answers

What is the basis for negotiating framework agreements via call off contracts?

$\text{Leverage economies of scale by negotiating bulk discounts}$ (C) Signup and view all the answers

What does the framework agreement process aim to reduce?

Transaction cycle time and buying effort (A) Signup and view all the answers

What does the framework agreement process eliminate?

Administration process of multiple purchase orders (B) Signup and view all the answers

What is one benefit of negotiating bulk discounts through the framework agreement process?

Cost savings through elimination of mark-ups on local purchase orders (A) Signup and view all the answers

What does the framework agreement process enable NNPC Limited to do with suppliers?

Initiate purchase orders over a period with multiple supplies or deliveries from a single/multiple suppliers (D) Signup and view all the answers

What should be included in proactive measures when negotiating call off contracts?

Leveraging economies of scale by negotiating bulk discounts and minimizing inventory cost (C) Signup and view all the answers

What does the framework agreement process aim to achieve in terms of cost savings?

Cost savings through elimination of mark-ups on local purchase orders by negotiating pre-determined price and leveraging bulk discounts (C) Signup and view all the answers