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From:[email protected]

October 17, 2016 10.43 A.M

Reminder on standard operating procedures on procurement and payment.

Hieveryone,

GoodMorning.

Thepurpose of this email is to remind our highly esteemed staff onGrange Park’s standard operating procedures (hereafter SOPs) onprocurement and payment. This email applies to, and binds all thedirectors, managers, and employees of the organization in anysituation where they are directly involved in our firm’sprocurement process whether as negotiators, specifiers,requisitoners, or purchasers. Recently, it came to the attention ofmanagement that there are delays in making payments to suppliers,occasioned by unsuitable procurement protocols. In this regard, thisemail is a brief refreshercourseof our firm’s SOPs on procurement and payment. Described herein areGrange Park’s SOPs:

Pre-TransactionAuthorization Phase

Atthis stage, the director of procurement, in collaboration with thequality control executives, and procurement team, visit potentialsuppliers to make a comparison of the quality of products. After acomprehensive screening process, the finest supplier is selected. Along term agreement, usually more than 5 years, is made signed bythe director of procurement. The financial director should beconsulted in this stage because he/she is the one to determine thefinancial limits to which the company can stretch to acquire newstock.

TransactionAuthorization Phase

Thisis the phase where purchased goods or services are delivered. Whenthe goods arrive at our company’s gate, the security personnel atthe gate is responsible for stamping and signing the delivery note,mentioning the exact time and date of arrival. Once in the premises,the goods are received by the director of procurement, qualitycontrol executives, and store manager. Quantities are endorsed by thedirector of procurement, while quality is approved by the qualitycontrol executives. If there are any quality or quantityinconsistencies, it is the responsibility of the director ofprocurement to follow-up with the respective suppliers. The financialdirector, in such a scenario, is expected to generate expenseaccounts which will reflect the fiscal reversals. If the goods matchup to our company’s standards, the store manager officiallychecks-in the new stock. Per se, the signatures relevant in thisstage are those of the gatekeeper, director of procurement, storemanager, financial director, and quality control executives. In caseof the delivery of a service, the individual to whom the service isbeing provided is the one to sign once a need is gratified. In caseof non-delivery, the financial director should be notified so thatthe undelivered services do not reflect as a liability in thecompany’s financial records.

Post-TransactionAuthorization Phase

Basically,this is the bookingof incurred liabilities. At this stage, all the purchase orders,invoices, delivery notes, and any other relevant purchasing documentsare forwarded to the director of finance by the director ofprocurement. The financial director double-checks all these documentsfor errors, accuracy, correctness of taxes charged, and properinvoicing. The director of procurement should make sure that theprocurement team follows-up on any pending invoices from suppliers.If there are any discrepancies in the documents, the financialdirector returns them to the director of procurement for correctiveaction after which they are returned to the financial office oncethey are rectified. The moment the financial director confirms thefiscal accuracy of the documents, the liabilities are settled by ourfirm. In case of cheque payment, the receiver should sign the paymentvoucher while handing over the payment receipt.

Nowthat the flames of the tenets of our company’s purchasing protocolsare rekindled in our hearts, let’s embrace them with the focus ofachieving more than just our organizational objectives. For all thoseyears, you have done it. You have driven our company to inconceivableheights and certainly, you will do it again. Your contributoryenergies are highly acclaimed. Good luck and God Bless.

WarmRegards,

NormanStoner.

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