NNPCL SCM_Warehousing.pdf

NNPC Limited SCM Processes and Procedures 19.0 Warehousing This is NNPC Limited’s process of storing physical goods before they are sold or further distributed in a dedicated warehouse or storage facility. It defines the minimum mandatory standards applicable to NNPC Limited warehousing operations....

NNPC Limited SCM Processes and Procedures 19.0 Warehousing This is NNPC Limited’s process of storing physical goods before they are sold or further distributed in a dedicated warehouse or storage facility. It defines the minimum mandatory standards applicable to NNPC Limited warehousing operations. Objectives The objective of the Warehousing policy is to ensure: • • • Proper storage, preservation, and systematic distribution of stock items to the Users. Up to date documentation that will enhance accountability for the Company's stockholding. Good housekeeping, safety/ security of materials and personnel, accountability, and probity. 19.1 Warehousing Policies S/N 1. Description Warehousing Policy a. Materials shall be stored in the warehouse in a manner that ensures that when needed, they are good for intended purposes and minimises deterioration and damage. b. SCM shall undertake regular preservation of materials and equipment in stock to avoid deterioration due to poor storage, age and/or movement. c. The security of materials held in stock shall be the primary responsibility of warehouse personnel and the scheduled security officers detailed to storage area on routine security beats. d. As a means of identifying NNPC Limited materials, all stock items shall be given appropriate security markings, where necessary, to stop "recycling" of company’s items. e. SCM shall carry out cyclic and perpetual inventory checks for all NNPC Limited stock of materials. f. SCM shall, in close collaboration with Finance and Accounts, organize and carry out annual Physical Stock Taking (PST) exercise for all materials held in stock (one hundred percent (100%). g. Moisture, pollution, and sunlight all have an adverse effect on various materials. Certain items, such as electronic cards etc, must be stored in an air-conditioned or refrigerated environment. 145 NNPC Limited SCM Processes and Procedures 19.1 S/N Warehousing Policies Description h. Manufacturers of spare parts normally will preserve their product with a light oily or light solvent type of preservative with or without sealed polythene bags for handling protection. For such items no further preservation is necessary at this stage, however, it is recommended that all smaller spares are sealed in plastic bags if they are not supplied in this way. i. Bearings are normally supplied by manufacturers with an oil type preservative and a greasy paper wrapping. So long as this wrapping is not disturbed then the bearings can be stored in their original packing. j. Spares and other steel items received with no protective coating or sealed polythene packing need to be coated with Shell Ensis Fluid or equivalent product and then sealed in plastic bags where size permits. k. Closed-circuit television (CCTV) shall be installed and maintained in appropriate material storage location for adequate surveillance by the warehouse Security Agents. l. Warehouse or stores shall be enclosed either individually or collectively with concrete wall fencing of reasonable height: at least 2.6 m high. m. Use of chain link fencing as security fencing structure for material storage areas shall be avoided. n. There shall be a Warehousing Section in the Supply Chain Management Department of each SBU, and this Warehousing Section shall cover the following types of warehouse/stores: i. Chemical Warehousing ii. Plant Spares Warehousing iii. General Goods Warehousing iv. Satellite Stores v. Projects/TAM Stores, etc. vi. Preservation vii. Issue Bay The above coverage is however dependent on the SBU's operational scope which can be sub-divided into any number of units that suit SBU's operational needs. 146 NNPC Limited SCM Processes and Procedures 19.1 Warehousing Policies S/N 2. Description 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. NNPC Limited shall: a. Carry out specific safety inspections/maintenance schedules periodically. b. Ensure all warehouse staff are adequately equipped with the right personal protective equipment (PPE). 19.2 Warehousing Procedures Responsible Party Description Job Aid 1. Warehouse Officer (N-5/6) Receive the materials from SCM Goods Receipt Officer (N-5/6), review the items and assess the need for preservation before placing materials into storage. Warehouse Tag 2. Warehouse Officer (N-5/6) Carry out a visual inspection of all items in his/her warehouse area of responsibility once a week and identify any item which require preservation. Once identified, the requirement shall be registered in the Preservation Logbook. Logbook 3. Stock Check officer (N-5/6) Carry out counting activities weekly and examine material for evidence of deterioration and draw attention to cases that it appears the preservation is inadequate. Logbook S/N Note: If he/she discovers materials that require preservation, then advise the Warehouse Officer (N-5/6) to log the requirement in the Preservation Logbook for that warehouse/yard. 147 NNPC Limited SCM Processes and Procedures 19.2 S/N 4. Warehousing Procedures Responsible Party Description Job Aid DM Warehouse (N-4/5) Review the Preservation Logbook on a weekly basis for the warehouses and stock yards under their control and makes recommendation. Logbook If preservation work is required, got to step 5 and if not, no action required. 5. DM Warehouse (N-4/5) If preservation work is required Programme Draw up a programme and budget for the funds required to complete the preservation work and forwards to SCM Warehouse (N-3/4) for approval. Note: This may involve the purchase of preservation fluids, the hire of labourers, and possibly for bigger jobs, such as tubular maintenance, the call of contractors to complete the work. Refer to the procurement methods for goods, works and services. 6. Warehouse Officer (N-5/6) Update logbook once preservation work is completed. Logbook 7. Stock Check officer (N-5/6) Comment on the effectiveness of the preservation process in his/her report. Stock Report Template Go to Stock Review Process. 148 NNPC Limited SCM Processes and Procedures 19.3 Warehousing Input Output Documents & Document Description Warehouse Tag Type Frequency Source Recipient Input As required SCM Goods Receipt Officer (N5/6), Warehouse Officer (N5/6) 2. Preservation Logbook Input Weekly Warehous e Officer (N-5/6) DM Warehouse (N-4/5) 3. Preservation Work Programme Input/Output As required DM Warehouse (N-4/5) SCM Warehouse (N-3/4) 4. Stock Report Output Template Weekly Stock Check officer 5/6) S/N 1. 19.4 DM Warehouse (N- (N-4/5) Warehousing Key Performance Indicators S/N Performance Measure Regular inspection of 1. warehouse area Basis of Measurement Timeframe Target Compliance with inspection schedule. Weekly 100% 2. Regular review of stock report Compliance with reporting schedule. Weekly 100% 3. Regular review of preservation work logbook Compliance review schedule. with Weekly 100% 4. Timeliness preservation programme Latest date completion preservation programme. for of work As required 5 days of work 149 NNPC Limited SCM Processes and Procedures 150