NNPC Limited SCM Processes and Procedures PDF

NNPC Limited SCM Processes and Procedures Document Review and Approval Revision history Version Author Date Revision This document has been reviewed by: S/N Reviewer Signature Date Reviewed 1 2 3 4 5 14 NNPC Limited SCM Processes and Procedures 1.0 Introduction 1.1 Background The pur...

NNPC Limited SCM Processes and Procedures Document Review and Approval Revision history Version Author Date Revision This document has been reviewed by: S/N Reviewer Signature Date Reviewed 1 2 3 4 5 14 NNPC Limited SCM Processes and Procedures 1.0 Introduction 1.1 Background The purpose of this manual is to set out the Supply Chain Management (SCM) policies and procedures for NNPC Limited. The manual describes the policies, guidelines and practices to be adopted in carrying out Supply Chain processes. It is designed to: • Serve as a procedural guidance for SCM staff across the Group. • Assist in providing a clear definition of job responsibilities as well as their interrelationships. • Eliminate information gaps on policies and procedures. • Ensure consistent definition and application of procedures. Specific processes and procedures contained in this manual are tailored to enable a step-by-step implementation of internal guidelines (e.g., Delegation of Financial Authorities) and external regulations (e.g., Local Content). The implementation of the policies and procedures set out in this manual will help to ensure that all entities within the Company maintain sound internal control systems. The manual defines the minimum controls expected within the Group. It also sets out the policies and directives to be followed and the reporting requirements to be complied with. The manual has been prepared to assist management and staff who are responsible for performing the supply chain management tasks in understanding: • The activities involved in planning, developing, implementing, and monitoring the procurement of goods, works and services for the Group. • The activities involved in the management of inventory of the Group in order to maintain availability of critical materials and optimize cost. • How to optimally manage the relationship between NNPC Limited and its Suppliers/Contractors. • The responsibilities of different stakeholders in the Supply Chain Management Process. • The activities involved in the documentation and reporting of Supply Chain activities for the Group. 15 NNPC Limited SCM Processes and Procedures 1.2 Structure of the Manual The manual contains a high-level Mandate, the SIPOC (Supplier-Input-ProcessesOutput-Customers) Model, and Relationship Map for the SCM Function. This is followed by 23 core chapters (processes), each of which is organised in line with the following structure: • Introduction: Gives an overview and scope of the process and sets out the key sub-processes covered. • Objectives: States the main purposes that the process intends to accomplish. • Policies: Outlines the main operating policies guiding the execution of various activities and tasks. • Procedures: Provides a detailed breakdown of the main activities in the process, including tasks, responsibilities and job aids/tools. • Input and Output Documents: Outlines the documents that serve as inputs into the process, the outputs and key reports generated. • Key Performances Indicators: Sets the performance measures used to determine the efficiency and effectiveness of the processes. • Process Flow Map: Provides a pictorial summary of the outlined procedures. 1.3 Compliance Compliance with this manual is mandatory for all users. Any significant act of noncompliance may be considered an act of misconduct. However, there may be exceptional circumstances, where it is impracticable to comply with a particular policy or procedure. In such instances, a prior written waiver will be required from the Head of the Function. The GRC function will review compliance with the provisions of this manual as part of their audit scope and procedures. Where the need arises, the GCEO is authorized to grant exceptions to the application of this policy, and thereafter seek ratification from the NNPC Limited Board. 1.4 Users This manual applies to all sub-functional areas in the Supply Chain Function. It also applies to other functions (e.g., Finance, Legal, Corporate Planning & Strategy, Corporate Communications, etc.) as reflected in the Relationship Map. 16