NNPC Limited SCM Process and Procedures Quiz

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What is the purpose of the Supply Chain Management Process and Procedures Manual?

To outline the steps for achieving procurement excellence

To establish a set of best practices for procurement

To provide a comprehensive framework for supply chain management (correct)

To define the roles and responsibilities of the procurement team

What is the main topic of Section 2.0 of the manual?

Determine Procurement Method

Category Management

Purchase Requisition

Plan Procurement (correct)

What is the purpose of the Evaluate Tenders and Select Supplier process?

To negotiate with the preferred bidder

To manage contracts

To issue a purchase order

To evaluate tenders and select the best supplier (correct)

What is the main topic of Section 10.0 of the manual?

Frameworks Agreement Signup and view all the answers

What is the purpose of the Goods Receipt process?

To verify goods against the purchase order Signup and view all the answers

What is the main topic of Section 15.0 of the manual?

Contract Management Signup and view all the answers

What is the purpose of the Stock Review process?

To identify slow-moving items Signup and view all the answers

What is the main topic of Section 18.0 of the manual?

Goods Receipt Signup and view all the answers

What is the purpose of the Delegation of Financial Authority?

To empower staff to commit expenditure and incur liabilities on behalf of the Group Signup and view all the answers

What is the purpose of the Disposal Request Form?

To initiate, document, and track the disposal process of assets Signup and view all the answers

What is an Expression of Interest?

A formal notice to potential suppliers that NNPC Limited is planning to acquire goods or services Signup and view all the answers

What is Economic Ordering Quantity?

The ideal order quantity that the Group should purchase in order to minimize its inventory costs Signup and view all the answers

What is Enterprise Resource Planning?

A technology used to manage and integrate core business processes in real time Signup and view all the answers

What is Form M?

A document completed by all importers for importation of goods into Nigeria Signup and view all the answers

What is the life span of a Form M for general merchandise?

180 days, with a 180-day extension Signup and view all the answers

What is a Goods Receipt Note?

A receipt given to the supplier to confirm delivery or acceptance of goods Signup and view all the answers

What is the purpose of an Authority for Expenditure?

To authorize spending for a particular project Signup and view all the answers

What type of document lists work items, their estimated quantities and cost?

Bill of Engineering Measurement and Evaluation Signup and view all the answers

What is a Bill of Quantities?

A document that provides specific measured quantities of work items Signup and view all the answers

What is a Business Unit within NNPC Limited?

A profit center that delivers specific products or services Signup and view all the answers

What is Capital Expenditure?

An amount spent to acquire or upgrade productive assets Signup and view all the answers

What does Delegation of Authority spell out?

The right to approve or perform certain functions Signup and view all the answers

What is a Delegation of Authority Manual?

A document that sets out the powers and authority granted to management Signup and view all the answers

What is the main purpose of a Delegation of Authority Manual?

To set out the powers and authority granted to management Signup and view all the answers

What is one of the approaches to consider when purchasing?

Substituting products or Suppliers Signup and view all the answers

What determines the need for a Procurement Planning Committee?

The nature and size of the procurements Signup and view all the answers

Who is responsible for developing the sourcing operational strategy for strategic items?

Key business stakeholders and the Executive Team Signup and view all the answers

What is the primary responsibility of the Procurement Planning Committee?

To prepare the procurement plan Signup and view all the answers

What characterizes leverage items?

High profit impact and low supply risk Signup and view all the answers

What is the purpose of aggregating requirements?

To reduce procurement cost Signup and view all the answers

Who is responsible for negotiating group-wide framework agreements for leverage items?

Group Supply 30 NNPC Limited SCM Processes and Procedures Signup and view all the answers

How often is the review of compliance of procurement requests with the Procurement Plan conducted?

Quarterly Signup and view all the answers

What is the approach for leverage items?

To leverage the balance of power and negotiate lower prices Signup and view all the answers

What is the purpose of the quarterly review of procurement requests?

To identify opportunities for improvement and highlight any developments that impact other procurement activities Signup and view all the answers

What is the characteristic of suppliers of leverage items?

They can be easily substituted Signup and view all the answers

Who is responsible for reaching out to all budget holders to prepare the plan for procurement?

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

What is the category of supplies with low profit impact and high supply risk?

Bottleneck items Signup and view all the answers

By when should the budget holders submit their plan for procurement?

By a stated deadline Signup and view all the answers

Why is it important to develop a sourcing operational strategy for strategic items?

To mitigate supply risk Signup and view all the answers

What is the purpose of integrating each subsidiary's procurement expenditure into its yearly budget?

To ensure proper budgeting and planning Signup and view all the answers

What should be considered when determining buying channels for strategic procurement categories?

Locations of need, financial thresholds, risk, commodity, and complexity Signup and view all the answers

What is the purpose of category spend analytics?

To inform a review of procurement category and subsequent update of the category and buying strategy Signup and view all the answers

What happens when an uncategorized ERP goods, service or works is identified?

The goods, service or works is analyzed against existing categories and validated Signup and view all the answers

What is the recommended frequency for reviewing and analyzing procurement data?

Annually Signup and view all the answers

What is one of the buying channels to consider for strategic procurement categories?

Catalogue/Punchout, call off contracts, competitive bids, etc. Signup and view all the answers

What type of data is analyzed in category spend analytics?

Expense and accounts payable data, category performance, inventory data, overall spend, PO, invoices, P-Card/Travel and Entertainment (T&E) Expense and KPIs Signup and view all the answers

What is the purpose of recommending initiatives to drive circular supply chains?

All of the above Signup and view all the answers

What is the outcome of category spend analytics?

Review of procurement category and subsequent update of the category and buying strategy Signup and view all the answers

Who is responsible for analyzing uncategorized ERP goods, service or works?

Responsible Party Signup and view all the answers

What is the purpose of defining buying channels for strategic procurement categories?

To ensure effective procurement for strategic categories Signup and view all the answers