OF

Receiving of Free Of-Cost Goods (FOC)

1. TABLE OF CONTENTS

CHAPTER 1: GENERAL OVERVIEW

1. Introduction
2. Purpose
3. Scope
4. Objectives and Responsibilities

CHAPTER 2: End-User Responsibility:

1. Make purchase requisition and get approval
2. Main copy of Approved purchase requisition to SCM

CHAPTER 3: Supply Chain Management Function

1. PO raise
2. Others work

CHAPTER 4: Commercial Function:

1. Choose the C & F party
2. Follow up with the C & F party to release the goods.

CHAPTER 5: Material Control Department Function:

1. Receiving of incoming goods
2. Make MRR on a PO basis

Chapter 1: General Overview

1.1 Introduction
This Standard Operating Procedure (SOP) is a comprehensive statement for undertaking
procurement activities of FOC Goods under three broad functions procurement management and Store
management. The detailed step-by-step information on the procedures, timeframe, and required
documents are clearly specified in this SOP for strict compliance. Standardizing and smoothing the
procedure of three broad functions through this SOP is expected to attain the core objective of the
company’s (FFL) procurement in achieving the “Value for Money” through fair and equal access to
suppliers. It is also expected to maintain uniformity in procurement procedures from the common
understanding of the process by all FOC goods procurement practitioners. It will also help in creating
perfect competition among the suppliers by ensuring fair and equal access to the information. This SOP
will also help FFL in proper accounting, safeguarding, and utilization of all the company’s expendable
FOC goods It is developed based on the existing rules and regulations of the SOP of FFL.

1.2 Purpose
Overall, the purpose of this SOP is to institutionalize systems and processes that are crucial in delivering
efficient and effective procurement services of the SCM. It shall be used as a step-by-step guide for
procurement and store management.

1.3 Scope
This SOP shall apply to all the departments in managing the Procurement, Store, and Property functions
except for those exempted under the other SOP/Policy.

Each procedure of FOC goods will be conducted in accordance with the SOP. In order to avoid a different
SOP for each procurement procedure, this SOP sets out the main common steps involved in all
procedures.

1.4 Objectives and responsibilities

The objective of this SOP is to ensure more effective and efficient management of the
procurement process, receipt, issue, and recording of expendable and non-expendable Goods,
safeguarding and proper recording in the view of the economy of efficiency. To establish
uniformity in the procurement process, speedy handling, and storage for timely delivery of
goods works and services to end users.

The major responsibilities are listed below:

2. End-User Responsibility:
Purchase requisition Raise: Any Purchase requisition will be made by the end-user and
approved by the approved authority as per the Procurement and purchase policy.

Approved Purchase requisition: The main copy of the approved PR will be sent to the SCM
department and Xerox will be preserved by the requisite department .

3. Supply Chain Management function:

Receive Requisition: Any requisition received shall be approved by the head of the
department/division. It shall contain the description of goods and budget lines.

Planned Activities:
Raise PO: The supply chain will make PO on the basis of the approved received purchase
requisition.

Share PO with Commercial: The supply chain will share PO only for foreign suppliers with
the Commercial department to release the goods in time.

Communication with Supplier: From time to time SCM department will communicate with
the supplier to update the notification about the goods position.
4. Commercial Function:
Choose the C & F party : The commercial department will select the C & F party to release
the goods timely.
Follow up on the C & F Party: The commercial department will follow up on the selected C
& F party until goods are received by the FFL store.
4. Material Control Department Function:
Receiving of incoming goods: The Material Control Department (MCD) will receive
incoming goods as per policy and process as well.

Make MRR on a PO basis: The Material Control Department (MCD) will make sure that the
MRR will be made on a PO basis.