NNPCL SCM_Goods Receipt.pdf

NNPC Limited SCM Processes and Procedures 18.0 Goods Receipt This process defines the minimum mandatory standards applicable to receiving goods at NNPC Limited. It deals with receipts of goods placed on Purchase Order (PO) only (i.e., for both stock and non-stock) from Vendors. Objectives The objec...

NNPC Limited SCM Processes and Procedures 18.0 Goods Receipt This process defines the minimum mandatory standards applicable to receiving goods at NNPC Limited. It deals with receipts of goods placed on Purchase Order (PO) only (i.e., for both stock and non-stock) from Vendors. Objectives The objective of the Goods Receipt process is to ensure: Effective receipt and put-away of materials. Proper handling of all materials received to eliminate wastages and ensure safety. NNPC Limited can track the time and place of receiving goods. The risk of authorizing payment for faulty and damaged goods is reduced. The chances of received goods getting lost or stolen are limited. • • • • • 18.1 Goods Receipt Policies S/N Description 1. Compliance with Logistics and Warehousing Policy a. SCM shall ensure proper receipt and documentation of all incoming materials. b. Formal quantitative and qualitative inspection of all delivered materials shall be carried out with relevant departments (inspection team) prior to final acceptance and receipt into stock. c. Inspection of all delivered materials shall be completed within five (5) working days of delivery. d. All materials not conforming to specifications as stated in the Purchase Orders shall be rejected and Vendors shall be notified to remove the rejected materials not later than seven (7) days of delivery. 2. Compliance with NNPC Limited HSE standards NNPC Limited is committed to observance and maintenance of high standard of Health, Safety and Environmental Protection in line with approved NNPC Limited Policy. All Contractors/Suppliers shall: a. Exhibit operational excellence by showing evidence of systematic management of safety, environment, health, reliability, and efficiency in their journey to achieve world-class performance results 137 NNPC Limited SCM Processes and Procedures 18.1 S/N Goods Receipt Policies Description b. Exhibit reasonable understanding of the safety rules and regulations in NNPC Limited/Subsidiaries. c. Provide appropriate safety facilities and necessary tools essential for safe and conducive performance of their contract. d. All hazardous materials such as chemicals shall be accompanied with Materials Safety Data Sheet (MSDS). This requirement shall be stated in the Purchase Order for each individual hazardous material and describe the following: i. Make-up/Composition of the Hazardous Material. ii. Handling & Storage of the Hazardous Material. iii. 3. Treatment of the Hazardous Material if spilled, etc. or if it comes in contact with people. Compliance with Goods Receipt Policy a. Information on the goods receipt register shall include the time of arrival, date, PO number, vehicle number, company, gate pass number and company representative's name. b. For goods with incomplete or incorrect documentation, the transaction shall be closed in the register and the Vendor shall not be allowed to keep the material in NNPC Limited premises for more than 24 hours after notification. In such cases, an outward gate pass shall be issued to enable the Vendor to remove the materials from NNPC Limited premises. c. The supervision of the off-loading/un-stuffing of the materials shall be at the receiving bay. d. During goods receipt activity, if a discrepancy exists in quantity, then the officer shall carry out partial delivery and if a material description does not agree with the PO and/or physical condition of the packaging is defective, the material shall be rejected at this point. e. Quality inspection on goods delivered shall be: i. concluded within three (3) days of receipts of inspection notice. ii. carried out in accordance with the approved testing procedure and in reference to specifications. iii. conducted with tests for chemicals, lube oils and catalysts sample in plant laboratory where result of acceptance or rejection will be issued. 138 NNPC Limited SCM Processes and Procedures 18.1 S/N Goods Receipt Policies Description f. Quality Inspection checks other than chemicals, lube oils and catalysts shall include: i. Specifications: Part numbers, manufacturer, make/model, dimension, etc. ii. Quantity ordered or received. iii. Physical conditions of goods. iv. Appropriate packaging. v. Colour coding where required. vi. Test certificates and other relevant source documents. vii. For packaged materials, the inspectors shall open the packages item by item for proper inspection. viii. Any discrepancies identified shall be noted. 18.2 Goods Receipt Procedures S/N Responsible Party Description Job Aid 1. Vendor Arrive with the materials requested for, register the materials, and obtain a gate pass at the security in-gate and then reports to the SCM (Supt., Receiving) (N-4/5) with all the delivery documents which include Purchase Order, Vendor waybill, test certificate (where applicable), etc. Gate Pass, Purchase Order & Waybill Note: All hazardous material delivered without MSDS shall not be processed further until presented. 2. SCM (Supt., Receiving) (N4/5) Match the waybill and relevant documents with the Purchase Order and ascertain the delivery destination of the order. If it matches go to step 3, if not go to step 4. 3. SCM (Supt., If the purchase order agrees with the Receiving) (N- waybill and relevant documents provided 4/5) Goods Receipt Register 139 NNPC Limited SCM Processes and Procedures 18.2 S/N Goods Receipt Procedures Responsible Party Description Job Aid Register the Purchase Order (PO) in the goods receipt register and notify the Goods Receipt Officer. 4. SCM (Supt., Receiving) (N4/5) If the right documents are not provided SCM Goods Receipt Officer/Materia l Handling Officer (N-5/6) Supervise the offloading at the receiving bay and check the material being delivered against Purchase Order specifications as follows: 6. SCM Goods Receipt Officer (N-5/6) Perform goods receipt process in line with goods receipt policy and notify SCM (Supt, Receiving) (N-4/5). ERP 7. SCM (Supt, Receiving) (N4/5) Issue Inspection Request Notice within 24hrs of receipt of goods to designated inspection team to carry out a quality inspection on goods delivered and GRC for attestation. Email 8. Inspection Team (User Dept/GRC/SC M) Carry out a detailed inspection of materials within 3 days of notice and if satisfied, forward report to SCM Supt, Receiving (N-4/5). Email & Inspectio n Team Report 9. SCM (Supt, Receiving) (N4/5) Receives inspection report from Inspection Team and forwards to SCM Goods Receipt Officer (N-5/6) for goods acceptance or rejection. Email 5. Advise the vendor to provide the correct documents within 24 hours before the goods receipt process can commence in line with goods receipt policy. • • • • HSE manual Material description Quantity Physical conditions of material Packaging. If goods are accepted go to step 10, if not go to step 12. 140 NNPC Limited SCM Processes and Procedures 18.2 S/N 10. 11. Goods Receipt Procedures Responsible Party Description Job Aid SCM Goods Receipt Officer (N-5/6) Accepted Goods Warehou se Tag SCM Warehouse Officer (N-5/6) Receive goods, locate them into the warehouse and capture the material location Tag and prepare the accepted goods and dispatch as marked to Warehouse for storage by Warehouse Officer (N-5/6). Attach the following documents to the MRV and forward to F&A for payment purposes: • • • • • • 12. ERP Invoice Waybill ERP Goods Receipt Note Purchase Order In-ward gate pass Acceptance certificate (Inspection team Report). SCM (Supt, Receiving) Rejected Goods 13. SCM (Supt, Receiving) Ensure the processing of gate pass for collection of the rejected material. 14. Vendor Remove the physical materials from NNPC Limited premises within two (2) weeks from the date of the receipt of the rejection letter. Issue rejection notice with the reason for the rejection (e.g., poor quality, incomplete, damaged, etc.) within 24 hours and inform vendor to come for collection. Email & Rejection Notice Gate pass Go to Warehousing Process 141 NNPC Limited SCM Processes and Procedures 18.3 Goods Receipt Input Output Documents & Document Description Type Frequency Source Recipient 1. Inward Gate Pass Input As required Security Officer (N5/6) Vendor 2. Purchase Order Input As required Vendor SCM (Supt., Receiving) (N-4/5) 3. Waybill Input As required Vendor SCM (Supt., Receiving) (N-4/5) 4. Goods Register Receipt Input As required SCM (Supt., SCM Goods Receiving) Receipt (N-4/5) Officer (N5/6) 5. Outward Pass As required SCM (Supt., Vendor Receiving) (N-4/5) 6. Inspection Request Notice Input As required SCM (Supt, Inspection Receiving) Team 7. Inspection Report Output As required Inspection Team SCM (Supt., Receiving) (N-4/5) 8. Materials Receipt Voucher (MRV) Input/Out put As required SCM Goods Receipt Officer (N5/6) SCM (Supt, Receiving) (N-4/5) and Finance 9. Rejection Notice Letter Output As required SCM (Supt., Receiving) (N-4/5) Vendor S/N Gate Output Team 142 NNPC Limited SCM Processes and Procedures 18.4 Goods Receipt Key Performance Indicators Basis of Measurement Timeframe Target of Errors or omission in the details when matching the PO and Waybill to each other. As required Zero error S/N Performance Measure 1. Completeness Waybill against PO 2. Timeliness Inspection Notice of Request Latest date for communication of the inspection notice. As required 1 day 3. Timeliness Inspection Report of Team Latest date for completion of the inspection team report. As required on caseby-case basis 4. Accuracy of MRV Number of material errors, omissions, and misrepresentations in the MRV. As required Zero error 5. Timeliness of Rejection Notice Latest date for communication of the rejection notice. As required 1 day 143 NNPC Limited SCM Processes and Procedures 144