|
§ Requisition – A requisition (or ‘supplies request’ form) must be completed and authorised prior to any purchasing activity. It is the role of the logistician to help budget owners to structure the way they express their needs, by making sure (and not by doing for them) that: ú The requisition must include a clear and precise specification of the goods or services required. If the goods required are standard Oxfam GB equipment, then the specification may be that given in the Oxfam Equipment Catalogue. ú The requisition must be properly authorised. Please refer to the Requisition Approval Table (Section 4.3.1) N.B. Information and Communications Technology (ICT) projects costing over £5,000, including user training time, require a separate business case; see http://intranet.oxfam.org.uk/support/is/policies_procedures/business_case/index.htm |
|
Value of proposed transaction |
Approval and sign off |
|
Under £25,000 per annum (p.a) |
Budget Holder or Project Manager |
|
Between £25,000 p.a. and £50,000 p.a. |
Programme Manager or Programme Representative |
|
Between £50,000 p.a. and £100,000 p.a. |
Regional Programme Manager or Regional Humanitarian Manager |
|
Between £100,000 p.a. and £500,000 p.a. |
Regional Director |
|
Between £500,000 p.a. and £5,000,000 p.a. |
A member of the Corporate Management Team |
|
Above £5,000,000 p.a. |
Corporate Management Team. |
|
§ Procurement is guided by plans made at the start of a project and must ensure exceptional donor procurement requirements are understood and met. Each region has defined limits for which the various procurement methods can be used (see the table in Section 4.3.2 below). In general: ú for low-value purchases, a single supplier may be approached for a quotation, unless the purchaser believes that better value would be gained by using competition. ú for purchases of a greater value, quotations must be obtained by using competition; from at least four potential suppliers; ú high value purchases must be subject to a full tender process. Refer to the Supply sections of the Logistics, Purchasing and Supply Procedures Manual for details of how to issue an Invitation to Tender and run the process. |
|
§ Ad hoc deviations from the Regional Purchasing Levels (Section 4.3.2): If the stated rules cannot be followed (e.g. in case of exceptional urgency, or if only one supplier has specialist knowledge required to supply the goods required), a Quotation/Tender Waiver form (see: http://intranet.oxfam.org.uk/support/purchasing/formsandtemplates/index.htm) is completed by the logistician or requesting person – authorised by the Head of Department and the Regional Director. |
|
§ Receiving – The person receiving the goods must inspect them for any defects. A Goods Received Note must be signed and dated, and any defects noted. § All key documents from the procurement process must be filed for auditing and future reference, as detailed on the Purchase Order File Checklist. |
|
§ A single person must always be designated as responsible for the stock, and for ensuring that documentation is completed properly. In the case of large stocks, this person will normally be a dedicated Warehouse Manager. In the case of smaller stocks, this person will be a dedicated Storekeeper. |
|
§ A bin card must be kept for each type of item held in stock, recording all receipts and issues of that item. Bin cards must be updated continuously as movements of stock take place. § A goods received form must be completed and signed whenever goods are received into stock. This provides evidence of the receipt of goods in the warehouse. § Stock transaction records should include information on the requester and /or person who authorised the request. § A stock report must be completed regularly (at least once a month), summarising receipts and issues for each item, as recorded on the bin cards. |
|
§ A full stock reconciliation must be completed quarterly, preferably with sample reconciliations done monthly to cross check stock reports and whenever there is a doubt on stock level accuracy. This report should be made by comparing a physical stock count to figures on stock records (blind count first!). It is used to identify and follow-up on differences between stock administration and physical reality. § The distribution report should be matched with the Goods-IN/Goods-OUT report by the programme logistician. Please refer to the section “Support to distribution programme” in the Procedures Manual. |
|
§ Vehicles must always be licensed according to local laws and insured (normally third-party insurance only). § Each vehicle must contain a log book, used to record start & end mileage of each journey made, fuel intake (mileage & litres), any problems reported, and all maintenance work and services carried out. |
|
§ Offices set up with HF/VHF bases and antennae must comply with local regulations. |
|
§ The original donor of the goods must be identified, and their restrictions on disposal, if any, must be followed. |
Tax & duty: for
goods which were originally acquired on a tax-free or duty-free basis,
approval be granted by the appropriate government authority before the goods
can be sold or destroyed.
This document contains a summary of Oxfam Great Britain’s (Oxfam GB or OGB) procedures for some core logistics and supply activities. It provides a brief overview only. For more information and explanation, please refer to the Oxfam Logistics, Purchasing and Supply Procedures Manual.
Please also refer to the Manual for subjects not covered in this document, including:
§ Selection and use of communications equipment
§ Managing office and staff accommodation
§ Supporting feeding centres
§ Supporting distribution programmes
§ Shipment of personal effects
The Logistics, Purchasing and Supply Procedures Manual is available in hard copy or on the Intranet in a downloadable .pdf at http://intranet.oxfam.org.uk/programme/humanitarian/managing/logistics/logsinfo
Other sources of advice and information are:
§ The Country Logistics Manager in your country
§ The Regional Logistics Coordinator in each Regional Centre
§ The Oxford Logistics Team –e-mail logadvise@oxfam.org.uk
§ The main logistics documents
ú Logistics, Purchasing and Supply Procedures Manual
ú Equipment Catalogue
ú Communications Manual
These procedures are standard ways of doing things in Oxfam. It may be that in some situations they have to be changed. Each Programme & Logistics Manager should be able to use his/her own judgement when this is the case.
All deviations from standard logistics procedures and their rationale must be documented and kept on record in the Project and Head Offices of Oxfam in the project country at hand.
§ The Annual Purchasing Plan should be produced at regional, country, and project levels.
Anticipate purchasing requirements and incorporate them into an Annual Purchasing Plan. Be sure to allow enough time for standard procedures to be followed.
|
§ Requisition – A requisition (or ‘supplies request’ form) must be completed and authorised prior to any purchasing activity. It is the role of the logistician to help budget owners to structure the way they express their needs, by making sure (and not by doing for them) that: ú The requisition must include a clear and precise specification of the goods or services required. If the goods required are standard Oxfam GB equipment, then the specification may be that given in the Oxfam Equipment Catalogue. ú The requisition must be properly authorised. Please refer to the Requisition Approval Table (Section 4.3.1) N.B. Information and Communications Technology (ICT) projects costing over £5,000, including user training time, require a separate business case; see http://intranet.oxfam.org.uk/support/is/policies_procedures/business_case/index.htm |
§ Requisitions should be traceable through the supply chain with regular status updates and prompt notice of delays provided to the requester.
For all relevant forms required for purchasing items see: http://intranet.oxfam.org.uk/programme/humanitarian/managing/logistics/tools_templates/index.htm
|
Value of proposed transaction |
Approval and sign off |
|
Under £25,000 per annum (p.a) |
Budget Holder or Project Manager |
|
Between £25,000 p.a. and £50,000 p.a. |
Programme Manager or Programme Representative |
|
Between £50,000 p.a. and £100,000 p.a. |
Regional Programme Manager or Regional Humanitarian Manager |
|
Between £100,000 p.a. and £500,000 p.a. |
Regional Director |
|
Between £500,000 p.a. and £5,000,000 p.a. |
A member of the Corporate Management Team |
|
Above £5,000,000 p.a. |
Corporate Management Team. |
§
Supplying from
stock – if the required goods are available in stock, then no purchasing
action need be taken.
|
§ Procurement is guided by plans made at the start of a project and must ensure exceptional donor procurement requirements are understood and met. Each region has defined limits for which the various procurement methods can be used (see the table in Section 4.3.2 below). In general: ú for low-value purchases, a single supplier may be approached for a quotation, unless the purchaser believes that better value would be gained by using competition. ú for purchases of a greater value, quotations must be obtained by using competition; from at least four potential suppliers; ú high value purchases must be subject to a full tender process. Refer to the Supply sections of the Logistics, Purchasing and Supply Procedures Manual for details of how to issue an Invitation to Tender and run the process. |
|
Region |
Low-value transaction level |
Four quotations process required |
Full tender process required |
|
East Asia, South Asia, HECA, Southern Africa, West Africa, MEEECIS and CAMEXCA |
up to £500 |
£500–20,000 |
above £20,000 |
|
South America |
up to US$725 |
US$725-30,000 |
Above US$30,000 |
|
§ Ad hoc deviations: If the dictated levels cannot be followed (e.g. in case of exceptional urgency, or if only one supplier has specialist knowledge required to supply the goods required), a Quotation/Tender Waiver form (see: http://intranet.oxfam.org.uk/support/purchasing/formsandtemplates/index.htm) is completed by the logistician or requesting person – authorised by the Head of Department and the Regional Director. |
§ Structural deviations: Longer term country /project specific deviations from the above standards are requested through the Regional Finance and Systems manager to the International Division Purchasing Lead at Oxfam GB Head Quarters.
§
Sourcing/ supplier
management: To ensure supplier management at the appropriate level of
operations, use the country national office to access suppliers that are in
country but outside the immediate area of project operation.
Similarly the country will go through the Regional Office or Oxford Logistics
Team to access suppliers outside the country and the Regional Office will go
through Oxford Logistics Team to access suppliers outside their region.
§ Preferred suppliers: Where the same goods are to be purchased more than once in any 12-month period, suppliers may be asked to quote or tender to become a preferred supplier. This means that the suppliers fix their prices for the period of the contract, and that all purchases for those goods would normally be made from the preferred supplier. A preferred supplier should be selected using one of the effective methods above, in the same way as selecting a supplier for a single purchase order.
§ Potential suppliers: These should be selected according to their ability to meet the requirements of the requisition, and possibly on previous experience with a supplier. For standard Oxfam equipment, the Oxford Logistics Team should always be asked to quote in addition to any other potential suppliers.
§ Request for quotation: Provide identical information to all suppliers asked to quote, including the same date and time by which the quotation must be returned.
§ Quotations are normally requested and received in writing. Where a quotation is given verbally, confirmation should be sent in writing. The purchaser should initial and date all received quotations.
§ Evaluating quotations: Complete a Summary of Bids (http://intranet.oxfam.org.uk/support/purchasing/formsandtemplates/summary_of_bids_form_sep04.doc) and record the choice of supplier and the reasons for that choice. Two or more people will evaluate the quotations.. The final decision may be based on factors other than the cost – e.g. service, quality, ethics, and payment terms.
§ Unsuccessful suppliers should be notified in writing.
§ The Purchase Order specifies the goods being ordered and the delivery and timing requirements. The purchase order should be sent, in writing, to the successful supplier.
§ Supplier performance: The purchaser should stay in contact with the supplier to ensure that they are able to fulfil the order. The purchaser is also responsible for checking that the goods to be received are of adequate quality, and are in accordance with the purchase order.
|
§ Receiving: The person receiving the goods must inspect them for any defects. A Goods Received Note must be signed and dated, and any defects noted. § All key documents from the procurement process must be filed for auditing and future reference, as detailed on the Purchase Order File Checklist. |
§ Terms of payment: Standard payment terms are 30 days after the end of the month of receipt of the goods. Advance payment to a supplier may be authorised by the budget holder if necessary, but only after a purchase order has been issued and accepted by the supplier.
The transport budget is part of the project (financial) plan and is managed by project and country Logistics staff. In consultation with the program responsible, Logistics will select the means of transport for the budget and when requisitions are raised depending on the urgency, distance, volume, and type of goods. Standard means of transport are:
§ Air freight – usually fast and reliable, but expensive. Types and quantities of goods may be restricted.
§ Charter flights – only to be used for large volumes of goods. Fast and reliable, but expensive. Always consult the Oxford Logistics Team before chartering a flight.
§ Sea freight – economical, particularly for large volumes of goods, but arrival times may be unreliable. Goods can be containerised for greater security.
§ Road freight – cheap, but dependent on road conditions and the security situation.
§ International courier – usually fast and reliable. May be economical for small volumes of goods.
§
Hand carry
– for small goods, dependent on finding a staff member travelling to the right
destination. No extra cost if the goods are included as part of the traveller’s
baggage.
Other factors to consider before placing a purchase order:
§ Packaging required will depend on the nature of the goods and the planned means of transport.
§ Trade terms define the division of responsibilities of Oxfam GB and the supplier for transport arrangements as set out in Incoterms 2000. Usually quoted as a three-letter code (e.g. EXW – ex works, and CIP – Carriage and Insurance Paid. Refer to the Logistics, Purchasing and Supply Procedures Manual for more information.
§ Hazardous goods – some goods are classified as hazardous by carriers (including some chemicals, batteries, and any combustible substances) and will be subject to extra transport costs. Ask the supplier for details of any hazardous classifications.
§ Export or import licenses – export or import licenses are required for some types of goods being transported to some countries. Purchase orders should not be placed until any necessary licenses have been obtained.
Arranging international shipments:
§ Some customs authorities require pre-shipment inspection of goods being imported. If so, then contact the designated agent to arrange for the inspection to be carried out.
§ Oxfam GB normally employs a freight agent to arrange the shipment and prepare some of the documentation. Selection of the freight agent is significant and occurs at the earliest stage of the programme.
§ Standard documents for international transport are sent to the destination office (normally by fax or e-mail) in advance of the expected arrival time of the goods. For sea freight, an original bill of lading must be sent to the consignee by international courier in advance of expected arrival time of the goods:
ú Air waybill – for air freight only. Specifies the consignee and who is responsible for handling and receiving the goods.
ú Road waybill – as for an air waybill.
ú Bill of lading – for sea freight only. Specifies the shipper and the consignee. Unlike an air or road waybill, this document acts as a legal claim to the goods – the consignee must be in possession of an original bill of lading in order to claim the goods when they reach the destination.
ú Commercial invoice – lists the goods and their value.
ú Packing list – a detailed list of the goods contained in each package.
ú Any other documents required for customs clearance on the exporting or importing side.
§
The process for
inward customs clearance of shipments varies between countries. Unless
Oxfam staff have local expertise, a customs agent is normally employed to carry
out this process.
In-country transport:
§ Goods being transported within a single country are accompanied by a waybill which is signed at the despatch as well as at receipt of the goods.
Refer to the Logistics, Purchasing and Supply Procedures Manual (Warehouse and Inventory Management section) for procedures and guidelines on selecting and setting up warehouse facilities.
§ Stock being held by Oxfam will normally consist of items purchased for and allocated to a specific project.
§ For simplicity in monitoring stock levels, items for different projects should normally be stored separately.
|
§ A single person must always be designated as responsible for the stock, and for ensuring that documentation is completed properly. In the case of large stocks, this person will normally be a dedicated Warehouse Manager. In the case of smaller stocks, this person will be a dedicated Storekeeper. |
§ Observe good health and safety practices in storing and handling goods – refer to the Logistics, Purchasing and Supply Procedures Manual for guidance.
§
Hazardous items
(including water treatment chemicals) and perishable or degradable items
(including food, seeds, and some water equipment) require special storage
arrangements – refer to the Procedures Manual for guidance.
The following documents form the basis of the stock management system:
|
§ A bin card must be kept for each type of item held in stock, recording all receipts and issues of that item. Bin cards must be updated continuously as movements of stock take place. § A goods received form must be completed and signed whenever goods are received into stock. This provides evidence of the receipt of goods in the warehouse. § Stock transaction records must include information on the requester and /or person who authorised the request. § A stock report must be completed regularly (at least once a month), summarising receipts and issues for each item, as recorded on the bin cards. § A full stock reconciliation must be completed quarterly, preferably with sample reconciliations done monthly to cross check stock reports and whenever there is a doubt on stock level accuracy. This report must be made by comparing a physical stock count to figures on stock records (blind count first!). It is used to identify and follow-up on differences between stock administration and physical reality. § The distribution report must be matched with the Goods-IN/Goods-OUT report by the programme logistician. Please refer to the section “Support to distribution programme” in the Procedures Manual. |
Refer to the Logistics, Purchasing and Supply Procedures Manual (Vehicle Management section) for guidance on purchasing and maintenance of vehicles.
|
§ Vehicles must always be licensed according to local laws and insured (normally third-party insurance only). § Each vehicle must contain a log book, used to record start & end mileage of each journey made, fuel intake (mileage & litres), any problems reported, and all maintenance work and services carried out. |
§ Programme Managers are responsible for vehicles under their care. Day-to-day management of vehicles may be delegated to a logistician.
§ Authorisation: Only Oxfam GB staff with written authorisation from the Programme Manager and holding a valid local or international driving license may drive Oxfam vehicles.
§ Where appropriate, employ a dedicated driver is for each vehicle. This is intended to encourage responsibility in maintenance and driving techniques.
§ A monthly management report should be prepared for all vehicle fleets, detailing (as a minimum) the distance travelled, fuel consumption, and maintenance work for each vehicle.
§ Preventative maintenance should be carried out on a defined schedule, including daily checks by the driver and regular servicing.
§ Use of vehicles should be planned for the week and the logistician should get a daily confirmation of those needs (usually in the afternoon of the day before).
It is the role of the logistician to help Oxfam
personnel to structure the way they express their needs.
Consider all of the following communication needs:
§ Communications between Oxfam staff / offices / partners
§ Communications between local actors (other Non-Government Organisations (NGOs) area)
§ Communications to/from Oxford
During the
initial phase of an emergency satellite phones can be extremely useful as they
allow us to work independently of local infrastructure or suppliers. Be
aware that satellite phones are still the most expensive means of communications
available.
Radio provides us with a reliable and low cost (it is free-to-air) means of
communication.
Consider using mobile phones if they are available but keep in mind that in an
emergency situation, there will be an influx of new users (all the new NGOs /
agencies will be buying mobiles as well) and local mobile companies won’t be
quipped to deal with the demand, causing the mobile networks to be
congested.
Please
contact the local Regional Information Systems Manager (RISM) for advice on IT
issues. They can advise on the availability and adequacy of Internet
services and their providers. In the UK you can contact the Information
Systems Department’s Helpdesk to request support or advice on any IT-related
issues (the Helpdesk phone number is: +44 (0)1865 473464 or email
helpdesk@oxfam.org.uk
For Internet connectivity in emergencies consider the following technologies:
§ Availability of local Internet service suppliers
§ Inmarsat BGAN for high speed data connections
§ As a last resort, data connections through satellite phones e.g. Thurayas
Email (through Lotus Notes) can be set up for offline use on Laptops. This
must be done for every user prior to travelling. This configuration
should be done in the UK, at one of the Regional Centres or in the country
office.
It is also possible to access email while travelling by using the Lotus Notes
web interface. This allows travellers to check their e-mail from any
computer with a web browser and an Internet connection.
Radios are an important tool to help manage the security of staff. They enable reliable communications between offices, vehicles and staff in the field. Two radio technologies are used: HF (for long distance) and VHF (for short distances and areas where HF coverage would be poor).
|
§ Offices set up with HF/VHF bases and antennae must comply with local regulations. |
There might be a need to apply for frequencies for Oxfam’s use and pay license fees.
§ There should be a radio operator at the main office base and all staff should be trained in the use of radio equipment.
§ Vehicles should be equipped with both HF and VHF radios (including antennae).
§ Staff in project sites can use VHF handsets to contact other staff in the area (typically in a two mile radius)
§
A clear radio
protocol should be distributed to all staff (this should include emergency
frequencies and callsigns for our staff/offices).
IMPORTANT NOTE: In an emergency or in areas where the situation is unstable our systems should be set up so they can monitor an emergency channel. This should be a channel agreed upon by all actors in the local context. It should be used in the event of an evacuation or to broadcast any distress message.
An Infrastructure Investment Appraisal will be carried out preceding significant changes to the connectivity in an office. This process investigates the options for improving communications and ensures that the changes are cost effective and approved by business managers. For more information on the process, including what needs to be done and who should be involved please see the following link:
http://intranet.oxfam.org.uk/support/is/policies_procedures/business_case
For the Satellite Phones Management Procedures document please request them at satphone@oxfam.org.uk
This is available in French,
Spanish & Portuguese.
§ All satphones in use should have a system for managing and monitoring phone usage. All personal calls can be paid for at the office where a satellite phone is based. This can be done by downloading the phone log.
§ Use the “Satellite Phone Registration Form” when requesting to purchase a phone from the Oxford Logistics Team. This form is located at the back of the “Satellite Phones Management Procedures.” Include a normal Oxfam GB Requisition with the request. The request is then sent to your Logistics Advisor in the Oxford Logistics Team.
§ The “Satellite Phone Asset Form” is intended to be used for satellite phones already in programme or project use to indicate a change of: locations; budget codes; contact people.
For satellite phones supplied by the Oxford Logistics Team:
§ Contact the Satphone Team by emailing satphone@oxfam.org.uk for advice on appropriate phone, trouble-shooting tips, blocking satphones, updates of forms and prices and any other general queries.
§ If the satellite phone needs returning for repairs, see paragraph below for procedure on returning satellite phones
§ Each satellite phone should have a named individual who is accountable for its management, use and security. His/her contact details should be updated with the Systems & Resources Team.
§
The paperwork
regarding the serial and pin numbers and original contents sheet should be kept
separate in a lockable cabinet for security purposes.
Every time an asset stock take is done and every time responsibility for a
satellite phone changes we recommend a check of the components is performed to
ensure the kit is complete and ready for use at all times.
§ The invoice from the supplier for all satellite phones is sent to the Telecoms Team in the Information Systems (IS) Department with a breakdown of airtime costs. The airtime breakdown will be sent on to the budget-holders by email.
§ Verification for payment of the invoice will be sent back to the IS Department within seven days of the receipt of the airtime breakdown. If verification is not received within this time period, the invoice will be paid with the last known and established budget code set up for the satellite phone.
§ If a satellite phone is stolen, you should immediately ring the Satphone Team on +44 (0)1869 320270, or the supplier on +44 (0)1493 441885 in “out of office” hours. The satellite phone number will then be deactivated. If the satellite phone is recovered, the number can be reactivated if required.
§ If there is no longer a need for a satellite phone in the programme, return it to the Oxfam Logistics Team as complete to specification as possible. The satellite phone kit will be checked and any repairs required or missing components will be charged to the last location that used the satellite phone.
Equipment or materials no longer required for the programme or project is to be disposed of in line with the following procedures:
|
§ The original donor of the goods must be identified, and their restrictions on disposal, if any, must be followed. |
§ It should be considered whether goods can be cost-effectively used by Oxfam GB in a different location (eg, communication equipment).
§ The order of priority for disposal is:
1. As directed by the donor
2. Oxfam GB use at a different location
3. Donate to other NGOs (local partners)
4. Donate to civil authority
5. Sell
6. Destroy
§ Change of ownership: a letter confirming the change of ownership should be issued. For computers, a statement stating that all software has been removed should also be signed.
§ Tax & duty: for goods which were originally acquired on a tax-free or duty-free basis, approval be granted by the appropriate government authority before the goods can be sold or destroyed.
§ Sales: use discretion to choose a disposal procedure appropriate to the value and type of goods. Goods of a high value or a high technical specification require a more formal disposal procedure than those of little value.
§ Reserve prices will be set by the Programme Manager, roughly at a price equal to that available on the open market.
§ Sales to Oxfam GB staff: At the discretion of the Regional Finance Manager, goods may be offered for sale to Oxfam GB staff. Interested staff members must submit sealed bids, and the sale is to be made to the highest bidder (subject to meeting the reserve price).
§ Sales to outside parties are to be conducted by public auction or by submitting sealed bids. Sale is to be made to the highest bidder (subject to meeting the reserve price).
Senior Logistics staff on each programme should prepare concise written reports as follows:
§ Monthly reports to the Programme Manager and to the Country Logistics Manager.
§ Quarterly reports to the two persons above plus to Regional Logistics Coordinator in the Regional Centre
§ End-of-deployment reports in order to highlight outstanding issues and act as handover notes to new staff.
Keywords
ethics, supply management, purchasing, logistics plans, assets, disposal, communications and IT, inventory, warehouse, vehicle management