Procurement Department

Introduction

The Procurement Department has the responsibility of purchasing goods, liaising with suppliers in various capacities, and importing such purchases.

This manual summarizes the scope of the tasks and activities of the procurement department in TD AFRICA Distributions Limited.

 Scope of Operations

  • Ordering Process
  • Freighting of goods
  • Making Physical Claims

Purpose

This manual provides ample description for the system and processes required for the efficient and effective management of all Procurement related activities as carried out by the department.

 

Authority/ Responsibility

The HOD procurement is responsible for ensuring total compliance with the requirements stated in this procedural manual to maintain a consistent workflow within the department.

Departure from Procedure

Adherence to all procedures stated in this manual is obligatory for all members of staff of the department and as such, due authorization is obtained from the Head of the department before deviating from these procedures.

 

TD QUALITY POLICY STATEMENT

  • To be a global leader in distribution, empowering Africa with transformative technologies.
  • To ensure accessibility, affordability, and usability of technologies across Africa, empowering individuals and businesses, nurturing local innovations, and steering a sustainable digital evolution.

 

TD Quality Objectives

  • To achieve a Gross Profit Margin of 8% annually.
  • Achieve 100% in customer satisfaction.

Departmental Quality Objective

  • To ensure that the ordering delivery lead-time target approved by management is met.

1.8      Infrastructure /Work Environment

An updated list of infrastructures/tools used within the department is maintained. This is hosted in Dynamics 365.

Inter-Relationship with other Departments

 

OPERATIONS PROCEDURE

2.1       Placing of Orders

  • Ordering of the product is initiated by Sales, which is either for stock or an order for a specific customer.
  • The part number of the item is indicated on the order.
  • Prices of items are derived from the global price list of the Supplier.
  • In cases where there is a discount on the price, the reference code for such discount is required as evidence that the Sales representative for the Supplier approved the discount.
  • The Orders are approved by: Stock orders – CEO/CMD, or for a specific customer (B2B) by the CEO/CMD
  • Orders are placed either via mail or online (OEM Portal).

Opening of Form ‘M/LC documentation.

  • Obtain the form ‘M’ application form from the bank.
  • Obtain Supplier/Infotech proforma invoice and send to the Insurance company to issue the Marine Certificate!
  • The form ‘M’ is completed based on the information stated on the proforma invoice.
  • TD gets SONCAP PC (Product Certificate) from the manufacturer/Infotech, or TD processes the SONCAP default/Import permit locally from SON.
  • Submit completed form M to the bank with the following: Signed LC application form, Marine Insurance Certificate, and Pro forma Invoice
  • The bank authorizes/processes the form ‘M’ for customs approval.
  • After bank authorization and approval by the Nigerian Customs Service, a BA and MF reference number is assigned to the form ‘M’
  • Sequel to Form M approved by Customs, LC is then established by the bank but presently the bank will bid for Forex and get allocation before establishing the LC.
  • The above process is the same for Bills for Collection except that signed LC application form is not required in processing Bills for Collection.
  • Info Tech Trade Services Ltd is our consolidator, immediately LC is established by the bank and telex provided. Info Tech prepares the following shipping documents and forward to the bank for confirmation/payment, CCVO, Commercial Invoice, Parking list, Manufacturers Certificate. Beneficiary Certificate, Airway Bill or Bill of Lading

 

Creation of Purchase Orders (PO) on Dynamics

  • All orders placed on the Procurement desk are created on the Dynamics Purchase Order.
  • These remain Open Purchase Orders until the goods are received physically in our Warehouse when the relevant purchase orders/Packing List are given to Warehouse to enable them to receive the products in Dynamics.

Follow-up on Orders

  • A mail is sent to the supplier requesting for the status of the order.
  • Where late shipment dates are given for an order, the supplier’s order administration personnel are contacted via e-mail or phone so as to escalate and get a quicker shipment date.
  • In cases of obsolete products, changes in price and supplier’s minimum quantity are communicated to our relevant Sales staff.
  • Orders are shipped in line with the agreed incoterms with our OEM.

 

Consolidating items for freight to Nigeria

  • On a daily basis, our freight forwarders (KDS Cargo) send us the stock report.
  • The Procurement staff/desk consolidates the order/invoices for these goods and a shipping instruction is sent to our forwarder to freight accordingly (via air or sea).

Updating of order

  • In order to keep track of all orders that have been delivered or not delivered to the company’s Warehouse, the Procurement Department keeps record of all past and present orders.
  • This record is updated on regular basis in a workbook named Order Status Report (OSR)
  • The updated OSR is now available on the OSR platform on D365 due to Supply Chain automation.

Freighting of goods

  • For goods positioned to come by air, Procurement personnel instruct the Forwarder to airfreight.
  •  As soon as airfreight is confirmed, an Airway Bill (AWB) is issued and sent by the Forwarder to Procurement for clearing purposes. Procurement notifies Logistics team for immediate clearance of product from the Port.
  • Where the goods are sea-freighted, the forwarder makes reservation for containers and vessel for loading the item.
  • After loading the containers, a list indicating part numbers and quantity of goods loaded, referencing the container number and the expected dates of sailing and arrival (ETS/ETA) is sent to TD by the Forwarder.
  •  On departure of the vessel, the shipping company issue a Bill of Lading (B/L) to the consignee, and it is a pre-requisite for clearing the container at the port. Procurement staff notifies Logistics team with these shipping documents/ETA’s for clearance.

  Processing of shipping documents

  • One set of shipping documents is sent to TD for clearing purposes
  •  One other set is sent to the Nigerian Customs Service through the opening bank for the generation of the Pre-Arrival Assessment Report (PAAR).
  • The PAAR determines the import duty and other taxes to be paid on the consignment.

Processing of Bill-of Exchange

It is expected that the Exchange Control used for clearing the document be submitted by the clearing agents to TD. The same is forwarded to the issuing bank for the Central Bank of Nigeria.

 

PROCESS FOR LOGGING OF B2B and STOCK ORDERS:

 

B2B Process

  • Sales personnel sends approval via mail to the approving authority (CEO/CMD)
  • The approving authority approves via mail.
  • Sales personnel share all details of transactions and approvals with Sales Operations to create SOP on D365.
  • The approving authority approves on Dynamics 365
  • Finance personnel confirms partner account status.
  • Procurement personnel create a Purchase Order and link the PO  to the SOP for the same order and submit for Audit to view on the 365 workflow.
  • Audit confirms profitability and compliance, and approves for logging.
  • Procurement personnel logs order after confirmation by Audit

Stock Orders

  • Sales sends approval via mail to the approving authority (CE/CMD)
  • Approving authority approves via mail.
  • Sales personnel shares with Procurement personnel to create PO on D365
  • Procurement personnel send to Audit for checks of compliance.
  • Audit sends to Procurement to log order after confirming all the terms are met.

Making physical claims and follow-up

  • Upon the receipt of goods in the central Warehouse, the delivery report is generated by the Warehouse department with which Procurement claim from the Supplier any occurrence of goods shortage, damage/dead-on-arrival (DOA), defective products, incorrect specification or wrong shipment.
  •  Such a claim is submitted with the Supplier immediately the goods are received.
  • A constant follow up is required not to lose track of these products and to ensure timeliness.
  • Where there is a short-landing of goods on order for a specific customer, the item is re-ordered and a claim lodged in for it simultaneously.
  •  The forwarder and clearing agents are notified too, so as to keep track of the shipment and confirm if the items are yet to be shipped or in transit.

ANALYSIS OF OPERATIONAL DATA

Reports are prepared on a weekly basis covering essential areas of activities such as executive summary, current situation, delivery performance among others.

 

CORRECTIVE ACTION

  • The department makes enquiries into reported cases of non-conforming services or identified cases of nonconforming services with the aim of identifying their root cause or causes without delay.
  • Subsequently, corrections and corrective actions considered appropriate to the effects of the nonconformities encountered are proffered and implemented.
  • All corrections and corrective actions implemented are evaluated for adequacy.  
  • Corrective actions relating to Issues of companywide nature are discussed at appropriate meetings such as Management meetings.
  • Records of activities relating to handling of nonconformities are maintained including details of the nature of nonconformity and action taken to correct such.

PREVENTIVE ACTION

As a proactive measure taken to deal with probable nonconformities, adequate review of specification received from Sales and Marketing is done.

CONTINUAL IMPROVEMENT

    For the purpose of achieving continuous improvement in all operations within the department, it is ensured that:

  • Appraisals are conducted at intervals to help identify competency
  • Service Level Agreement (SLA) is established for each staff member based on their related job function and scored monthly by the HOD.
  • The bi-annual Performance Assessment form is completed every 6 months by the staff and HOD, discussed and forwarded to HR, who maintains all such records and files.
  • Constructive suggestions received from members of staff during departmental meetings are noted, reviewed for modification where necessary, and implemented afterwards.

DEPARTMENTAL MEETING

   Departmental meetings are held weekly and as the need arise to discuss key issues. In addition, relevant contributions are made by Departmental staff and consequently reviewed for further action. Minutes of meeting is circulated via email.

RECORDS

 A list of all QMS records is maintained in index of records for the purpose of inventory and control of the total files in the department with suitable retention