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thRough sustained availability of life saving commodities
በኢትዮጵያ ፌዴራላዊ ዴሞክራሲያዊ ሪፐብሊክ THE FEDERAL DEMOCRATIC REPUBLIC OF ETHIOPIA የመድኃኒት ፈንድና አቅርቦት ኤጀንሲ PHARMACEUTICALS FUND AND SUPPLY AGENCY
Standard Operating Procedure (SOP) for Pharmaceuticals Procurement Follow Up
October, 2015 Addis Ababa, Ethiopia
Standard Operating Procedure (SOP) for Pharmaceuticals Procurement Follow UP
December, 2016 Addis Ababa, Ethiopia
Table of Contents Foreword …………………………………………………………...............................................................…………………..……………….. I Acknowledgment ……………………………………………….....................................................………………………...…………….. II Acronyms ……………………………………………….....................................................…………………..............……...…………….. III Definition of Technical Terms ………………………………………………......……………….........................………...…………….. 1 1.. SOP- Receive Import Intiation Documents ……………………..............................………………………...…………….. 4 2.. SOP- Request for Foreign Currency Reserve from NBE ………….......................................………...…………….. 7 3.. SOP- Ensure Import Insurance Coverage ...................................................................................................... 10 4.. SOP- Bank Application for Letter of Credit (LC) .......................................................................................... 13 5.. SOP- Bank Application for Cash against Document (CAD) ....................................................................... 17 6.. SOP- Air Shipment Follow-up .......................................................................................................................... 20 7.. SOP- Sea Shipment Follow-up ......................................................................................................................... 24 8.. SOP- Clearing Processes .................................................................................................................................... 29 9.. SOP- Transporting Pharmaceutical Goods from Port to Warehouse ................................................. 32 10.. SOP - Claim Processing ..................................................................................................................................... 35 11.. SOP - Officialization/Declaration ................................................................................................................. 40 12.. SOP - Managing Performance Bond .............................................................................................................. 43 13. . SOP - Routine Reports ..................................................................................................................................... 46 14.. Annexes ................................................................................................................................................................. 49
I
Foreword Pharmaceuticals Fund and Supply Agency (PFSA) is coordinating sector wide effort aimed at significantly improving sustainable availability of quality assured pharmaceuticals at an affordable price to the public. As part of this effort, the Agency has developed standard operating procedures (SOP) for pharmaceuticals procurement follow up activities with a view to standardize work processes and to make the service more effective and efficient. This manual contains thirteen procurement follow up SOPs that document regularly recurring work processes in pharmaceuticals procurement follow ups. The SOP will promote access to quality assured pharmaceuticals through consistent implementation of processes and procedures. The SOP can be used as reference material for professionals working on sourcing of pharmaceuticals in the public sector. The implementation of the SOP needs to be re-enforced by management at all levels and it should be reviewed regularly. I would like to take this opportunity to thank all who participated in the development of this SOP. I would also like to encourage users of the Manual to send their comments regarding the Manual to the Agency via mail (Pharmaceuticals Fund and Supply Agency (PFSA), P. O. Box 21904, Addis Ababa, Ethiopia)
Meskele Lera
Director General, Pharmaceuticals Fund and Supply Agency (PFSA)
II
ACKNOWLEDGMENTS Pharmaceuticals Fund and Supply Agency (PFSA) would like to acknowledge all of the contributors for their dedicated effort in developing this Standard Operating Procedure (SOP) for Pharmaceuticals Procurement Follow up. We would also like to extend our gratitude to Clinton Health Access Initiative (CHAI) for its financial assistance in printing of this SOP and Adroit Consultancy and Training Service PLC for the development of the SOP. The following persons have contributed starting from idea generation to the development this document and their advice and support are gratefully acknowledged. Mr. Yemaneberhan Taddesse (Deputy Director General, PFSA), Mr. Yared Yiegezu Zegiorgis (Director of Forecasting & Capacity Building Directorate, PFSA), Mr. Bekele Ashagire Yeshanew (Director of Pharmaceuticals & Medical supplies Procurement Directorate, PFSA) Mesfin Teklehaimanot and Yared Debebe from Adroit Consultancy and Training Service PLC. Furthermore, we would like to acknowledge the individuals and their organizations (Annex II) who participated in the workshop organized to review the draft Manual for their feedbacks.
Recommended citation Pharmaceuticals Fund and Supply Agency (PFSA). Standard Operating Procedure (SOP) for Pharmaceuticals Procurement Follow up. December 2016, Addis Ababa, Ethiopia
Acronyms CAD
Cash Against Document
C&F
Cost and Freight
CPO
Certified Payment Order
DG
Director General
EAL
Ethiopian Air lines
ESL
Ethiopian Shipping Lines
FHRDDG
Finance and Human Resource Deputy Director General
FMD
Fund Management Director
FMHACA
Food, Medicine and Healthcare Administration and Control Authority
FOB
Freight on Board
GMP
Good Manufacturing Practice
GS
General Service
GRV
Goods Receiving Voucher
LC
Letter of Credit
NBE
National Bank of Ethiopia
ODDG
Operations Deputy Director General
PFT
Procurement Follow up Team
PI
Proforma Invoice
PO
Purchase Order
TRF
Track Request Form
TV
Transfer Voucher
VAT
Value Added Tax
WT
Withhold Tax
III
Page 1
Definition of Technical Terms Air waybill Air Waybill - AWB’ A document that accompanies goods shipped by an international courier to provide detailed information about the shipment and allow it to be tracked. The air waybill has multiple copies so that each party involved in the shipment can document it.
Bill of Lading A bill of lading (sometimes abbreviated as B/L or BoL) is a document issued by a carrier which details a shipment of merchandise and gives title of that shipment to a specified party.
Cash Against Document A payment arrangement in which an exporter instructs a bank to handover shipping and title documents to the importer when the importer fully pays the accompanying bill of exchange or draft.
Category of Pharmaceutical Goods For PFSA and for this SOP purpose Category of Pharmaceutical Goods are: 1) Medical supplies, 2) Medical Equipment, 3) Chemicals and Laboratory Reagents and 4).Pharmaceuticals.
Certificate of Analysis Is an authenticated document issued by an appropriate authority that certifies the quality and purity of pharmaceuticals, and animals and plant products being exported are analyzed and in good condition
Certificate of Origin A Certificate of Origin (CO) is an important international trade document attesting that goods in a particular export shipment are wholly obtained, produced, manufactured or processed in a particular country. COs also constitute a declaration by the exporter.
Chamberized Commercial Invoice Chamberized Commercial Invoices are an invoice that a buyer has to get a notary stamp from the Chamber of Commerce of the supplier country.
Commercial invoice A commercial invoice is a document (an invoice) used in foreign trade. It is used as a customs declaration provided by the supplier that is exporting an item across international borders.
Confirmed Purchase Order Is a purchase orders where it is authenticated by the buyer bank for confirmation for the acceptance of the transaction and reservation of the required foreign currency.
Consignment Consignment is the act of consigning, which in turn is the act of giving over to another person or agent’s charge, custody or care any material or goods, but retaining legal ownership until the material or goods are sold.
SOP for Procurement Follow Up Team
Page 2
Container A very large metal case of a standard size where most of the time the sizes are 20 feet or 40 feet and used for loading and transporting goods on trucks, trains and ships.
Expiry Date Is a date on which a product becomes technically un-usable or unsellable and should be pulled off from the shelves or from the market and got disposed as per the legal requirment
File Document It is a paper folder (classer) or box file used to keep documents of the same nature together and track their records.
Good Manufacturing Practices Good manufacturing practices (GMP) are the practices required in order to conform to the guidelines recommended by agencies that control authorization and licensing for manufacture and sale of food, drug products, and active pharmaceutical products. These guidelines provide minimum requirements that a pharmaceutical or a food product manufacturer must meet to assure that the products are of high quality and do not pose any risk to the consumer or public.
Foreign Currency A currency, usually from a highly industrialized country, that is widely accepted around the world as a form of payment for goods and services. In our country this includes US Dollars ($), GB Pound (£), Euro (€) etc. A hard currency is expected to remain relatively stable through a short period of time, and to be highly liquid in the forex market.
Insurance Is an arrangement by which a company undertakes to provide a guarantee of compensation for specified loss, damage, illness, or death in return for payment of a specified premium for a specific period of time.
Letter of Credit It is a written undertaking by a bank (issuing bank) given to the seller (beneficiary) at the request, and in accordance with the buyer’s (applicant) instructions to effect payment — that is by making a payment, or by accepting or negotiating bills of exchange (drafts) — up to a stated amount, against stipulated documents and within a prescribed time limit. The below are different types of LCs. •
Revocable Credit – the LC which may be cancelled any time without notice to the beneficiary. This is an unsatisfactory and risky mode of settlement for any Supplier of pharmaceuticals and is rarely seen in practice.
•
Irrevocable Credit – the LC which can only be amended or cancelled with the consent of both parties. This is the standard document for international transactions.
SOP for Procurement Follow Up Team
Page 3 •
Confirmed Irrevocable Credit - is recommended when dealing with countries with potential economic instability or foreign exchange issues. Essentially, the seller’s bank has the buyer’s bank confirm the credit, constituting a definite undertaking by the releasing bank.
• Transferable Irrevocable Credit enables the Supplier to make the credit available in whole or in part to one or more third parties (second beneficiaries). •
Revolving Credit can be irrevocable or revocable and provides for continuous drawings for specified amounts within a stated period of time. This is used to replace a series of LC’s to the same beneficiary with similar requirements or to control size of shipments at any one time.
Log Book Systematic daily or hourly or activity based record of documents, tasks, activities, events, occurrences or record of movement of documents from one place to another.
Packing List A packing list is a document that includes details about the contents of a package. The packing list is intended to let transport agencies, government authorities, and customers know the contents of the package. These details help each of these parties handle the package accordingly
Quality It is the totality of features and characteristics of a product or service that bears its ability to satisfy stated or implied needs. Quality is a measure of excellence or state of being free from defects, deficiencies and significant variations from stipulated mix of ingredients.
Regulatory Bodies This includes all government bodies which have control over the permit for import and inspection for quality and other parameters of pharmaceutical goods.
Split of shipment Large shipment broken into two or more shipments and sent either on the same vessel or separately to the buyer.
Supplier A party that supply goods and services to customers.
Swift Copy A SWIFT copy or document is an extract of the electronic payment document sent to the correspondent bank or beneficiary bank. It acts as a confirmation of payment made from buyer bank and informs the beneficiary of the value and date of transaction
Undertaking debit Note It is a form or letter issued by a seller of goods or service to advise the amount owed by the buyer.
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1. SOP- Receiving Import Initiation Documents Document Title
Receiving Import Documents
Document No
SOP/PFT/01
Revision
1
Effective on:
1. Introduction The starting point for Procurement Follow up Teams is collecting all relevant and approved procurement documents from Procurement teams and suppliers.
2. Purpose The purpose of this SOP is to define the processes that will be followed to collect all approved and relevant documents and to show the next steps in order to open and control register book for each transaction.
3. Scope This SOP is applicable to all import carried out by the Follow-up Team of Procurement Directorate and other partners.
4. Responsibilities Title Documentation Officers Banking and Insurance Officers
Responsibility • Receive all relevant and approved purchase documents from Procurement teams, partners and suppliers. • Open File and register on log book • Check the conformity of PI, PO, Contract agreement and other import initiation documents
Follow-up Team Coordina- • Make sure that the documents are registered on log book. tor
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Page 5 5.
Process map/Flowcharts
Receive signed contract agreement & other relevant import documents
Open File document with PO reference number or Waybill no.
Check for the Correctness of documents PI, PO, Currency type, 10% bond etc
Register on log book
6.
Procedures 6.1. Receive signed contract agreement and other relevant import initiation procurement documents from Procurement Directorate team which includes: • Signed Contract Agreement • Proforma Invoice which should have the following • Date of Proforma Invoice •
Purchase order number
• Name of the supplier • Address with phone number • Payment term • Currency • Incoterm •
Country of origin
•
HSS code
•
Description of the product as per the PO and contract
•
Unit of each package
SOP for Procurement Follow Up Team
Page 6 • Quantity of each product • Bank detail (bank name, Address, Account number) • Mode of shipment • Port of loading Including country • Port of discharge(destination) including country • Delivery period • 10% Performance bond • Quotation • Offer analysis • Bid announcement document for purchase of above USD 1 million. • etc. 6.2. Open File document with PO reference number or Airway Bill or Bill of Lading number with requesting organization code in case of donations. 6.3. Check PI with PO, contact agreement, in order to confirm similarity of purchase terms, values, currency similarity, Country of origin, etc 6.4. Register on Log Book.
7.
Amendment History
Revision:
Effective Date:
0
SOP for Procurement Follow Up Team
Approved By:
Reason Initial release
Page 7
2. SOP- Request for Foreign Currency from NBE Document Title
Request for Foreign Currency from NBE
Document No
SOP/PFT/02
Revision
1
Effective on:
1. Introduction Foreign currency permit is necessary step for all imports made by any business in Ethiopia. The National Bank of Ethiopia (NBE) is the central bank of the country where this responsibility lie and controls the foreign exchange transactions.
2. Purpose The purpose of this SOP is to define the processes to follow in the submission of foreign Currency Permit Request to National Bank of Ethiopia and subsequent follow-up.
3. Scope This SOP is applicable to all import carried out by the agency pertinent to pharmaceuticals and medical supplies.
4. Responsibilities Title
Responsibility
Runner
• Make sure the letter is signed and stamped by the respective body in time
Archive
• Stamp the letters and make sure to distribute to respective body
Banking and Insurance Officers.
• Prepare bank permit request letter
Contract mangement team Coordinator
• Check the completeness of the request letter
FM Director or coordinator and either ODDG or FHRDDG or DG
• Sign on the bank permit request letter
• Submit the approved request letter to NBE and copy to Commercial banks then follow up the status.
SOP for Procurement Follow Up Team
Page 8 5.
Process map/Flowcharts Prepare Bank permit request letter to NBE
Check completeness of the NBE permit request letter
Get the NBE Permit signed by FMD and ODDG or FHRDDG or DG
Submit the approved letter to NBE
Follow up with NBE for approval
Receive Approval from NBE
File the approved NBEpermit
6. Procedure 6.1. Prepare letter to NBE requesting permit by filling the following on the standard letter to national bank of Ethiopia • On subject raw enter authorization to commercial bank branch you want to open either LC or CAD should be clearly stated • Name of supplier the purchase order on first raw and the FOB value with the currency of agreement and payment term with account holder in the agency • On next step write the currency and value in fingure and statement consecutively • Name of the count with its number and make copies to all relevant bodies • Checked for correctness by procurement contract management team correctness
SOP for Procurement Follow Up Team
Page 9 6.2. Submit the NBE Permit form to the contract management team Coordinator and PD for checking. 6.3. Get the NBE Permit signed by FMD and ODDG, FHRDDG or DG. 6.4. Make sure properly stamped and submit the approved NBE Permit letter to NBE. 6.5. Follow –up with NBE for permit approval 6.6. Collect the NBE approval document. 6.7. File in the opened file document with proper traceability 7.
Amendment History
Revision: 0
Effective Date:
Approved By:
Reason Initial release
SOP for Procurement Follow Up Team
Page 10
3.
SOP - Ensure Import Insurance Coverage Document Title
Ensure Import Insurance Coverage
Document No
SOP/PFT/03
Revision
1
Effective on:
1. Introduction Insurance is a promise of compensation for specific potential future losses in exchange for payment known as Insurance Premium. It is a common practice in the import transaction to insure pharmaceutical goods in transit. Briefly, the following reasons compel PFSA to contract transport insurance: •
Protection against financial losses resulting from damage, pilferage, theft and nonreceipt of entire or part of a consignment; and
•
Protection against financial claims that can be made against the owner of goods on board a vessel in case of a “declared general average” (the goods themselves being undamaged).
2. Purpose The purpose of this SOP is to define the processes to follow in the process of insuring imported pharmaceutical goods from foreign countries.
3. Scope This SOP is applicable to all import carried out by pharamceuticals and medical supplies procurement.
4. Responsibilities Title
Responsibility
Banking and Insurance Officer.
• Properly complete Insurance Form • Submit the Insurance Form to Insurance Company with relevant documents.
• Get Insurance coverage for the import goods. Follow-up Team Coordina- • Check and verify the completeness of filled insurance tor application letter for completeness. Procurement Director • Approve Insurance form
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Process map/Flowcharts
5.
Get Insurance form from Insurance company
Fill the Marine declaration form Check for Completeness of the Insurance Form Get the insurance form Approved
Submit the Insurance form to Insurance Company Yes
Credit facility? No
Get quotation for the Premium amount
Get certificate witnessing marine cargo confirmation Policy Letter
Request for Payment
Pay to Insurance Company
Receive Underwriting Debit Note
File in the referenced document file
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6. Procedure 6.1.
Get marine declaration form from Insuring company
6.2.
Fill the marine declaration form properly based on PI and PO. • Name of tje insured part-write pharmaceuticals Fund and Supply Agency • Amount to be ensured section -write the currency and figurative value of the contracted amount and also in word the plus 10% • Quantity optional • Description of goods part write either of pharmaceuticals, medical supplies, chemicals and reagent or medical equipment based on contract • Marks and Nos- Write here PFSA and commerical bank with specific branch • Packing optional • Form in this section indicate from which port the product is shipped and to be the agreed destination in Ethiopia • In the per SS section write the mode of shipment which is either sea or air • In the cover required section write against all risks • finally on the remark section write the performa invoice number and purchase order number for easy tracking
6.3.
Get Insurance form reviewed by the contract management team Coordinator.
6.4.
Get signed and approved by Procurement Director.
6.5.
Based on the approved Insurance Declaration form get quotation of the premium amount and or
6.6.
Receive Certificate Witnessing Letter from Insurance company as a credit note and continue bank process. Then Follow the next step to settle the credit
6.7.
Submit Payment request for insurance premium amount to Fund Management • Prepare payment request fill the following part on the standard insurance payment request form
6.8.
Pay to Insurance Company. 6.10.
File the Underwriting Debit Note in the PO reference File document for next stage.
7. Amendment History Revision:
Effective Date:
0
SOP for Procurement Follow Up Team
Approved By:
Reason Initial release
Page 13
4.
SOP- Bank Application for Letter of Credit (LC) Document Title
Bank Application for Letter of Credit (LC)
Document No
SOP/PFT/04
Revision
1
Effective on:
1. Introduction Bank application for payment is one of the major components of pharmaceutical goods importation into the country. Currently LC opening is facilitated through all commercial banks.
2. Purpose The purpose of this SOP is to define the processes to follow in the preparation of LC application to make payments to supplier of pharmaceutical goods from foreign countries.
3. Scope This SOP is applicable to all import carried out by the pharmaceuticals and medical supplies of Procurement Directorate of PFSA.
4. Responsibilities Title Banking and Insurance Officer
Responsibility • Receive NBE Permit • Fill LC application form and Foreign Exchange Application for Imports • Submit insurance, NBE Form, LC application, PO and proforma invoice to Commercial Banks
Contract management Team Coordinator and PD FMD and ODDG or DG
• Collect LC Swift copy • Check LC application form and Foreign Exchange Application for Imports. • Approve and sign on LC and foreign Exchange Application form
SOP for Procurement Follow Up Team
Page 14 5.
Process map/Flowcharts Receive NBE Permit
Collect and fill LC Application and Foreign exchange Application for Imports of Commercial Banks
Check for the correctness of the forms
Signed and approved by PFSA officials
Submit the approved LC to bank
Receive Bank’s LC swift, or debit advice from the bank
Inform supplier about the Bank Payment Status
File the LC documents
6. Procedure 6.1. Collect all relevant and approved documents to apply for LC payment which includes • Supplier Proforma Invoice of 2 copies, • Insurance Debit Note (one original and one copy), • NBE permit, and • Purchase Order. 6.2. Fill Foreign Exchange Application for Imports with due care based on supplier Proforma Invoice. Fill the permit form in 5 (five) copies and the purpose of copies are the
SOP for Procurement Follow Up Team
Page 15 1st is original, 2nd is Import Control Copy, 3rd is Customs Control (Original), 4th is Customs Copy (Duplicate) and the 5th is File Copy. Details to be filled are:•
PFSA’s full Name, address and Bank detail
•
Details of PI reference and Category of Pharmaceutical Goods to be imported.
•
Required Foreign currency amount and equivalent Birr for FOB Value, Freight and CIF
•
Method of Payment
•
Port of destination
•
Shipment allowed by (sea or air)
•
Manufacturer’s Name and Country of Origin
•
Supplier Name
•
Name of local commission agent and address
•
And others required by the bank, and
6.3. Collect and fill the LC form in 2 (two) copies and make sure that the following are properly jotted down to avoid any future inconveniences and additional costs: 6.3.1.
Whether the LC is Irrevocable or Confirmed Irrevocable
6.3.2.
Supplier name, address and bank detail
6.3.3.
Value of import goods
6.3.4.
PI date and Number
6.3.5.
Expected list and quantity of official documents required to make final payment including ,
•
Chamberized Commercial Invoice (3copies)
•
Manufacturer Invoice (if necessary)
•
Packing list,
•
Bills of lading or airway bill (parcel post receipt marked “freight prepaid” or “payable at destination” by the shipping company (3copies)
•
Expected delivery date
•
Latest Shipment Date
•
Chamberized Certificate of Origin
•
Insurance certificate (if necessary)
•
Origin of Goods
•
Whether partial shipment is allowed or not
SOP for Procurement Follow Up Team
Page 16 •
Whether transshipment is permitted or not
•
Packaging mark
•
Certificate of Analysis and manuals (if necessary)
•
Freight Invoice in case of CIF
•
Pre-shipment Inspection (if necessary)
6.4.
Get the Letter of application form and Foreign Exchange Application signed by PFSA authorities (DG or DDGs and FMD or FM coordinator
6.5.
Submit the approved applications to bank
6.6.
Follow-up until the application is concluded by the bank
6.7.
Collect LC swift copy and bank debit advice from the bank and check for the correctness of the advice whether it meets all the terms and conditions of Bank Application Form. Normally the bank charge the following (though this might be changed through time and need frequent update) •
Service charge 1.5% of invoice value
•
Exchange payable 1.5% (Please note that no exchange payable if PFSA uses its own USD account)
•
Opening Commission 0.5%
•
Cable (swift charge) ETB 100
•
In latter stage Extension charge of 1.0%
6.8.
Communicate to supplier and or his agent about the bank status to speed up the procurement process by scanning and sending the LC swift copy.
6.9.
On the standared letter mention the name of the supplier with its address, the opening date, late shipment date and LC expire date
6.10. File in the opened filed document.
7. Amendment History Revision:
Effective Date:
0
SOP for Procurement Follow Up Team
Approved By:
Reason Initial release
Page 17
5.
SOP- Bank Application for Cash Against Document (CAD) Document Title
Bank Application for Cash against Document (CAD)
Document No
SOP/PFT/05
Revision
1
Effective on:
1. Introduction CAD mode of settlement enables the seller to produce, supply and ship goods ordered by PFSA while retaining some control over the release of the cargo until PFSA pays through bank.
2. Purpose The purpose of this SOP is to define the processes to follow in the preparation of CAD application to make payments to supplier of pharmaceutical goods from foreign countries.
3. Scope This SOP is applicable to all import carried out by pharmaceuticals and medical supplies Procurement Directorate of PFSA.
4. Responsibilities Title Responsibility Banking and Insur- • Receive NBE Permit ance; and Follow • Submit Insurance Coverage, NBE Permit, PO and Proforma Up Officer Invoice to Commercial Banks
• Receive Confirmed PO for CAD • Inform supplier and or his agent about confirmed PO
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Page 18
5. Process map/Flowcharts Receive NBE Permit
Submit the approved PO, Insurance and NBE Permit to commercial bank
Receive Confirmed PO for CAD
Inform supplier and or his agent about the confirmed PO File in the file document
6. Procedure 6.1.
Collect NBE permit.
6.2.
Submit the approved PI, PO, Insurance debit note and NBE permit with other relevant supporting document to commercial bank.
6.3.
The Bank approves the Purchase Order (Confirmed PO) to show foreign exchange is reserved for the supplier payment.
6.4.
Communicate supplier and or his agent about the confirmed Purchase Order to start production and shipment of the pharmaceutical goods.
6.5.
File the confirmed PO in the PO referenced file
6.6.
Normally the bank charge the following (though this might be changed through time and need frequent update) •
Service charge 0.50% of invoice value upon PO approval
•
Exchange payable 1.50% (Please note that no exchange payable if PFSA uses its own USD account)
•
Cable (swift charge) ETB 100
•
In latter stage Extension charge for expire PO is 1.0% for a month and 1.5% after a month.
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7. Amendment History Revision: 0
Effective Date:
Approved By:
Reason Initial release
SOP for Procurement Follow Up Team
Page 20
6. SOP- Air Shipment Follow-up Document Title
Air Shipment Follow
Document No
SOP/PFT/06
Revision
1
Effective on:
1. Introduction Shipment follow up is the process to know and understand where about of the pharmaceutical goods production as well as shipment stage. Once the Follow-up team communicates the LC swift copy or confirmed PO to suppliers, it is necessary to make status follow-up using convenient communication tools to speed up the delivery of goods on timely manner.
2. Purpose The purpose of this SOP is to define the processes to follow in the Air Freight shipment to avoid delay of shipment as well as speed up of customs clearance at air ports.
3. Scope This SOP is applicable to all import carried out by the Follow-up Team of Procurement Directorate of PFSA.
4. Responsibilities Title
Responsibility
Follow up and • Make repetitive communication with supplier and receive notificaDocumentation tion for shipment. Officer, Banking • Receive draft shipping documents for verification and confirm and Insurance supplier about correction and then follow up for copy and original Officers, Transitor documents • Prepare inspection request letter to FMHACA and other regulatory bodies • Prepare undertaking letter to custom and EAL • Collect inspection request letter from documentation officers • Follow up with FMHACA and other regulatory bodies Follow Up Team Coordinator
PD
• Settle Air Freight (if necessary) • Follow up for the receipt of shipment documents • Review FMHACA and other regulatory bodies inspection request letter and freight payment request • Sign FMHACA and other regulatory bodies inspection request letter • Confirm Freight Payment Request (if necessary)
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5.
Process map/Flowcharts Check with supplier about the production/or shipment Receive Signed contract agreement and other relevant import documents
Receive shipment notification from supplier or donor either by email, fax, DHL etc
Receive all draft shipping documents from the supplier before they send the original (Copy) to check correctness
Yes
Prepare split of shipment request to Bank and Insurance
Partial shipment
No
Is this Donation?
Receive confirmed split of shipment from bank and insurance
Yes Get Pre Import Permit
No Write undertaking letter to Customs and EAL cargo to be entertained using copy documents in order to start clearing Register on log book
Write and send Inspection request letter to FMHACA & other bodies
No Meet regulatory bodies’ requirements?
Yes Receive regulatory bodies release paper
Start Claim Processing (section 10)
Pay or receive credit invoice for freight
Submit the bank and Insurance documents; Regulatory bodies release letter and Supplier documents to Clearing Agent
File in the file document
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6. Procedure 6.1.
Frequently follow up with supplier about the production and shipment of the pharmaceutical goods using all communication means.
6.2.
Receive shipment notification from the supplier or donor.
6.3.
If this is donation, then get pre import permit from the donor or his agent.
6.4.
If it is purchase, receive all draft documents from suppliers before they send the original ones through fax or email attachment or DHL to verify possible mistakes/errors.
6.5.
Inform to Suppliers if there is any adjustment required or correctness of the shipping document.
6.6.
If there is any partial shipment, prepare split of shipment request to Bank and Insurance, then receive Confirmed split of shipment from Bank and Insurance.
6.7.
If the shipment goods arrive before the original documents’ arrival through the bank, or, if PFSA wants to start customs process early, the Follow Up officer and Team Coordinator should initiate the customs clearance formalities with the copy document at the customs office at the arrival port. Therefore receive updated copy shipping documents from suppliers in order to be entertained by bank. the documents which must include at least the following: 6.7.1.
Commercial Invoice (this need to be chamberized)
6.7.2.
Air way bill
6.7.3.
Certificate of Origin (this need to be chamberized)
6.7.4.
Packaging list
6.7.5.
Certificate of analysis
6.7.6.
Pre Import Permit for donations
6.7.7.
Narcotic and Psychotropic permit
6.8.
Write undertaking letter to customs office and EAL cargo to be entertained using the copy documents. This facilitates the early finishing of customs clearance processes. Please note that the Bank will hold 10% and Customs 25% of invoice value to process using copy of shipping documents.
6.9.
Prepare letter to FMHACA and regulatory bodies for inspection permit by including documents under section 6.6 and packing list, commercial invoice. This needs to be verified by Team Coordinator and signed by PD.
6.10. Send the letter with supporting documents to regulatory bodies with copy of packing list and commercial invoice. 6.11. Receive regulatory bodies’ release or rejection letter. If it is rejected start claim processing.
SOP for Procurement Follow Up Team
Page 23 6.12. Check delivery condition whether the terms are FOB, CIF, etc 6.13. Receive EAL/Carrier air lines freight Invoice. 6.14. Prepare Freight Payment Request which needs to be approved by PD. 6.15. Send Payment Request to Fund Management to prepare check or CPO. 6.16. Pay Freight to EAL and receive Payment confirmation from EAL. 6.17. Finally collect Original documents through bank and deliver to clearing agent. 6.18. File in the file document.
7.
Amendment History
Revision:
Effective Date:
Approved By:
Reason
SOP for Procurement Follow Up Team
Page 24
7. SOP- Sea Shipment Follow-up Document Title
Sea Shipment Follow-Up
Document No
SOP/PFT/07
Revision
1
Effective on:
1. Introduction Shipment follow up is the process to know and understand where about of the pharmaceutical goods production as well as shipment stage. Once the Transit and Follow-up team communicate the LC swift copy or confirmed PO to suppliers, it is necessary to make status follow-up using convenient communication tools to speed up the delivery of goods on timely manner.
2. Purpose The purpose of this SOP is to define the processes to follow in the shipment following-up of goods in order to avoid delay of shipment as well as speed up of customs clearance at ports.
3. Scope This SOP is applicable to all import carried out by the Follow-up Team of Procurement Directorate of PFSA.
4. Responsibilities Title Banking and insurance, Sea case team, Documentation Officer & Transitor
Follow Up Team Coordinator
Procurement Director FMD, ODDG, DG
Responsibility • Make repetitive communication with supplier and receive notification for shipment. • Check and submit shipment status and prepare Split of Shipment permission to Bank and Insurance • Prepare FMHACA and other regulatory bodies Inspection request letter • Settling ESL Freight and port dues • Follow up for the receipt of shipment documents and shipment type • Review FMHACA and other regulatory bodies inspection request letter, freight and port due payment requests • Sign FMHACA inspection request letter • Confirm Freight Payment Request • Sign on payment requests
SOP for Procurement Follow Up Team
Page 25
5. Process map/Flowcharts Check with supplier about the production or shipment status
Receive shipment notification from supplier either by mail or fax, DHL etc Receive all draft shipping documents from the supplier before they send the original (Copy) to check correctness
Receive all original shipping documents from the bank Yes Partial Shipment?
Prepare Split of shipment request to Bank and Insurance
No
Receive Freight and Port Debit Note or Payment requests
Receive Confirmed Split of shipment from Bank and Insurance
Prepare Payment Request Letter
Pay freight cost to the carrier and port dues Sign Container Agreement and Release Form with ESL Receive Customs assessment, Operation number and effect Payment
10)Follow Clearing Process (Section 8)
Follow up the shipment & arrival of the goods at dry port
1
SOP for Procurement Follow Up Team
Page 26
1
Write and send Inspection request letter to FMHACA & other Regulatory bodies
Meet FMHACA Requirements?
Receive Regulatory bodies release paper
Process Claim (Section
Conduct Customs Physical Inspection
Meet Customs Requirements?
Receive Customs Release Paper.
Identify Price or quantity difference?
Pay if above initial assessment or Claim refund if payment is over
File in the file document
6. Procedure 6.1.
Frequently follow up with supplier about the production and shipment of the pharmaceutical goods using all communication means.
6.2.
Receive shipment notification from the supplier
SOP for Procurement Follow Up Team
Page 27 6.3.
Receive all draft shipping documents from suppliers before they send the original ones through fax or email attachment or DHL to verify possible mistakes/ errors.
6.4.
Inform to Suppliers if there is any adjustment required or correctness of the shipping document.
6.5.
If there is any partial shipment, prepare split of shipment request to Bank and Insurance, then receive Confirmed split of shipment from Bank and Insurance
6.6.
Receive Freight and port debit note or Payment requests from ESL.
6.7.
Prepare letter in two copies for bank to make payment to ESL which need to be checked by Team Coordinator and PD.
6.8.
Submit the Payment letter to FMD and ODDG or DG for approval and signature.
6.9.
Send Payment letter to bank to effect the payment.
6.10. Receive Bank debit advise 6.11. Submit the Bank advice to ESL and receive Payment confirmation from ESL. 6.12. Receive Customs Assessment and operation number from Maritime (then follow clearing process of section 8) 6.13. Sign Container Agreement with ESL and Release Form and pay in advance for container as per estimated days of container usage and follow up to clear at the end 6.14. Receive all original shipping documents from suppliers through bank or indorse copy documents. The documents must include at least the following: 6.14.1. Commercial Invoice (this need to be chamberized) 6.14.2. Bill of lading 6.14.3. Certificate of Origin (this need to be chamberized) 6.14.4. Packaging list 6.14.5. Certificate of analysis 6.15. Check the shipment condition whether it is partial or not. 6.15.1. If the shipment is partial, then 6.15.1.1. Prepare Split of Shipment request to Bank and Insurance 6.15.1.2. Reviewed by Team Coordinator, initialed by PD and signed by FMD and ODDG or FHRDDG or DG. 6.15.1.3. Submit the Split of Shipment Request to Bank and Insurance 6.15.1.4. Receive Confirmed Split of Shipment from Bank and Insurance 6.15.2. If it is full shipment, then submit all documents to transitor
SOP for Procurement Follow Up Team
Page 28 6.16. Sign Clearing agreement 6.17. Submit all documents to the transitor through documentation officer. 6.18. Follow up and receive Customs assessment and storage payment 6.19. Prepare letter to FMHACA for inspection by indicating packing list, commercial invoice. This needs to be verified by Team Coordinator and signed by PD. 6.20. Send the letter to FMHACA with copy of packing list, commercial invoice, PO and other necessary shipment documents. 6.21. Receive FMHACA and other regulatory bodies release letter through the transitor if it is as per their requirements, otherwise 6.22. Process claim as per section 10. 6.23. Get customs physical inspections 6.24. If it meets customs requirements receive customs release paper and continue the next process, otherwise 6.25. Identify if it is price or quantity difference and pay the difference if the initial assessment is lower or claim refund if the initial payment is higher. 6.26. Submit the bank documents, FAMACA letter, Supplier documents and Container Agreement and Release Form to clearing company 6.27. File in the file document
7. Amendment History Revision:
Effective Date:
0
SOP for Procurement Follow Up Team
Approved By:
Reason Initial release
Page 29
8. SOP- Clearing Processes Document Title
Clearing Processes
Document No
SOP/PFT/08
Revision
1
Effective on:
1. Introduction Customs clearance is the documented permission to pass that a national customs authority grants permission to imported goods so that they can enter the country or to exported goods so that they can leave the country. The custom clearance is typically given to a transit and shipping agent to prove that all applicable customs duties have been paid and the shipment has been approved.
2. Purpose The purpose of this SOP is to define the processes to follow in the transit and clearing of goods in order to speed up of customs clearance at ports.
3. Scope This SOP is applicable to all import carried out by the Follow-up Team of Procurement Directorate of PFSA.
4. Responsibilities Title Transitor, Clearing Company
Responsibility • Handover necessary shipping documents to Clearing agent • Prepare clearing agreement
Team Coordinator and PD FMD. ODDG, FHRDDG and DG
• facilitate customs clearing processes • follow up the processes and check payment requests • Sign Clearing agreement • Approve payments
SOP for Procurement Follow Up Team
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5. Process map/Flowcharts
Collect all shipping documents Fill Customs Clearing Agency Agreement Submit all shipping documents, FMHACA clearance and other documents to Customs Clearing agency Follow-up with the Clearing agent
Receive tax assessment for VAT, WT, Customs duty, Sure Tax Request for CPO or budget request based on assessment document
Follow up With Banks & Collect Original shipping Documents
Pay the CPO to the Clearing agent and receive payment advice
Receive Receipt or Removal (release) paper from Customs
Submit Original shipping Documents to customs
No
Storage and Demurrage?
Collect declaration document
Yes
Request for CPO
Pay and Collect invoice
SOP for Procurement Follow Up Team
Prepare for next Stage
Page 31
6. Procedure 6.1.
Collect all shipping documents from supplier through bank for originals or fax or email attachment for Copy documents.
6.2.
Prepare Customs clearing agreement
6.3.
Reviewed by Team Coordinator and signed by PD
6.4.
Send Customs Clearing Agreement and all shipping documents including FMHACA clearance (in case of Air Shipment) to clearing agency
6.5.
Follow up with the clearing agent about the signing of the contract and customs clearing status.
6.6.
Receive assessment from clearing agent for VAT, WT, Customs duty, Sure Tax, etc.
6.7.
Request for CPO payment based on assessment letter or Prepare budget request to Ministry of Health.
6.8.
Payment request checked/reviewed by Team Coordinator, confirmed by PD and signed by FMD and DG or ODDG.
6.9.
Send the letter to Bank and receive CPO
6.10. Pay the CPO or Budget letter to clearing agent and receive payment advice from the agent. 6.11. Receive release paper from Customs. 6.12. Check if there is storage and demurrage cost 6.13. If no storage and demurrage costs, prepare for next step, if not 6.14. Request for CPO 6.15. Pay for storage and demurrage 6.16. Collect invoice for payment of storage and demurrage. 6.17. Collect Declaration document and 6.18. File in the file document.
7. Amendment History Revision: 0
Effective Date:
Approved By:
Reason Initial release
SOP for Procurement Follow Up Team
Page 32
9. SOP- Transporting Pharmaceutical Goods from Port to Warehouse Document Title
Transporting Pharmaceutical Goods from Port to Warehouse
Document No
SOP/PFT/09
Revision
1
Effective on:
1. Introduction Transporting pharmaceutical goods from port to warehouse involves the processes that oversees, coordinates and facilitates the shipment of pharmaceutical goods from port to PFSA designated warehouses. This process considers nature and size of the imported goods, the need for cold chain vehicles facilities etc.
2. Purpose The purpose of this SOP is to define the processes to follow in the transporting of pharmaceutical goods from port to warehouse with maximum care.
3. Scope This SOP is applicable to all import carried out by the Follow-up Team of Procurement Directorate of PFSA.
4. Responsibilities Title Responsibility Transitors, Follow –up • Notify storage and distribution to arrange ware house officers General Service
• Confirm driver status • Assign driver and truck for transporting goods
Driver
• Carefully move consignments from port to warehouse
Team Coordinator
• Request truck
Procurement Director • Approve truck request
SOP for Procurement Follow Up Team
Page 33
5. Process map/Flowcharts Identify the nature of the pharmaceutical goods
Estimate the number of trucks and type of truck needed Fill Truck Request Form Send Approved Truck Request to General Service Follow up with General Service Confirm the assigned driver and his/her location status Check the containers are sealed and locked if goods are in Container
Handover Consignment from Port/Cargo Fill Consignment Handover Form for each trucks and sign on the Form Transport the Consignment from Port to Warehouse Handover the Consignment to Warehouse with accompanied documents Fill Transfer Voucher
Receive Goods Receiving Notification and GRV from Finance
File all documents TVs and GRV in PO reference file
SOP for Procurement Follow Up Team
Page 34
6. Procedure 6.1.
Identify the nature of the pharmaceutical goods and decide the type of track needed whether normal truck or cold chain trucks required
6.2.
Estimate the number of trucks needed
6.3.
Fill Truck Request Form (TRF) and get approval from Procurement Director
6.4.
Submit the approved TRF to General Service (GS)
6.5.
Follow up with GS
6.6.
Confirm with GS about the assigned driver and his/her where about and communicate to clearing agent.
6.7.
Check the containers are sealed and locked before handing over to drivers.
6.8.
Handover the consignment (in Container in Case of Sea freight) from port to each truck driver.
6.9.
Fill Consignment Handover Form to each track and sign on the form
6.10. Transport the consignments from port to the assigned Warehouse. 6.11. Compile Handover forms from the drivers in case of more than one truck. 6.12. Fill Transfer Voucher (TV) by mentioning airway bill or bill of ladings and commercial invoice and get signed by Warehouse Manager. 6.13. Receive Goods Receiving Notification form from warehouse signed by Warehouse Manager and GRV from Finance. 6.14. File all transport and store documents in PO referenced file.
7. Amendment History Revision:
Effective Date:
0
Approved By:
Reason Initial release
8. Supplemental Issues 8.1.
In case of single parcel for light consignment, the transitor might directly deliver to store by fulfilling all procurement follow up and store procedures.
8.2.
In case of sea freight, the responsibility of taking the consignment will be by the driver and he/she needs to make sure that all procurement follow up and store procedures are fulfilled.
SOP for Procurement Follow Up Team
Page 35
10. SOP - Claim Processing, Document Title
Claim Processing
Document No
SOP/PFT/10
Revision
1
Effective on:
1. Introduction Claim processing is one of the follow up team responsibility in case of expiry, quality, shortage, damage, loose pack or cancellation of orders of imported pharmaceutical goods. The claim processing team should always carefully read the claims procedure and documents required to support the claims.
2. Purpose The purpose of this SOP is to define the processes to follow in the claim processing of procured pharmaceutical goods.
3. Scope This SOP is applicable to all import carried out by the Follow-up Team of Procurement Directorate of PFSA.
4. Responsibilities Title Secretary
Responsibility • Receive Complaint letter from any department
• Submit to Procurement Director Follow –up officers, • Make Preliminary assessment for incoming pharmaceutical goods
Transitor, Warehouse Manager & • Receive Compliant letters and check for the necessary information are included in the letter Banking and Insurance Officer • Fill and follow up to send Insurance claim letter and
Team Coordinator Procurement Director
• Send cancelation letter and receive confirmation for cancelation • Check insurance claim form and notification letters to suppliers • Communicate aggregated quantity to suppliers • Forward Complaint letter to follow up team • Sign on Insurance claim forms, • Approve letters to be sent to suppliers and cancelation letter to banks.
SOP for Procurement Follow Up Team
Page 36
5. Process map/Flowcharts
Make preliminary assessment on the quantity & quality of imported product
1
Conduct preliminary survey by transitor/ or inspection by FMHACA, Warehouse, or Customers
Yes Meet contract
No
Continue Customs clearing processes.
Supplier issue?
No
Get Preliminary Survey Report from the transitor/agent Inform Insurance firm by phone & fill Insurance formats Submit the Preliminary Survey report to Port and Customs Submit shipping documents to insurance company Follow up with Insurance Company to get Survey inspection done by the Insurance and receive Survey report
Yes
Receive compliant letter from any source or FMHACA inspection paper
Forward compliant letter to Follow up Team Check the Necessary Information are incorporated in the letter
Prepare letter to supplier stating the issue and claim for replacement Check the letter prepared for Supplier
Notify Customs for the loss or damage
Approve the letter prepared for Supplier
Follow up with Insurance for reimbursement
Communicate/Send the letter to Supplier
Follow with supplier for claim
SOP for Procurement Follow Up Team
Page 37
2
Order Cancelation by Supplier due to Force Majeure
Order Cancelation from Supplier
Write Cancelation to Bank
Send Cancelation to Supplier
Collect Credit Advise from Bank
6. Procedure 6.1.
Arrange preliminary assessment on the quantity and quality of imported product. If there is any claim requirement
6.2.
Conduct Preliminary survey by the Transitor or his/her agent
6.3.
Get Preliminary Survey Report from the transitor/agent.
6.4.
If there is any shortage, damage or non conformity to shipping documents identify who is responsible and claim either from Insurance or claim from the supplier. If the claim is from Insurance, then 6.4.1. Immediately inform to Insurance by phone 6.4.2. Submit the Preliminary Survey report to Port and Customs 6.4.3. Fill Insurance claim format. 6.4.4. Submit Insurance claim form together with shipping documents to insurance company. Shipping Documents includes 6.4.4.1. Commercial Invoice 6.4.4.2. Bill of Lading 6.4.4.3. Certificate of Origin 6.4.4.4. Packing List 6.4.4.5. Insurance Debit Note 6.4.4.6. Insurance policy Document which need to have revenue stamp. 6.4.4.7. Others as per the requirement of insurance company.
SOP for Procurement Follow Up Team
Page 38 6.4.5. Follow up with Insurance Company to get Survey inspection done by the Insurance company itself 6.4.6. Collect Insurance Survey report. 6.4.7. Notify Customs for the loss or damage 6.4.8. Follow up with Insurance company for reimbursement 6.4.9. Collect money from insurance 6.5.
If Claim is from supplier (in case of the claim arises as a result of issues of Quality, Loose Pack, Expiry and Order Cancelation: 6.5.1. Quality 6.5.1.1. Receive FMHACA quality problem letter and or compliant letter from Storage and Distribution Directorate (SDD). 6.5.1.2. Forward compliant letter to follow up team 6.5.1.3. Check for the necessary information incorporation into the letter 6.5.1.4. Prepare letter to the supplier about quality issues and claim for replacement 6.5.1.5. Check the letter for inclusion of all information 6.5.1.6. Approve the letter 6.5.1.7. Communicate/send the letter to the Supplier 6.5.1.8. Receive aggregated quantity of quality problem drags/goods from SDD. 6.5.1.9. Communicate the aggregated quantity to the supplier 6.5.1.10.
Follow up for replacement.
6.5.2. Loose Pack and Expiry 6.5.2.1. Receive compliant letter from Storage and Distribution Directorate (SDD). 6.5.2.2. Forward compliant letter to follow up team 6.5.2.3. Check for the necessary information incorporation into the letter 6.5.2.4. Prepare letter to the supplier about quality issues and claim for replacement 6.5.2.5. Check the letter for inclusion of all information 6.5.2.6. Approve the letter 6.5.2.7. Communicate/send the letter to the Supplier 6.5.2.8. Receive aggregated quantity of loose pack/Expiry problem drags/ goods from SDD.
SOP for Procurement Follow Up Team
Page 39 6.5.2.9. Communicate the aggregated quantity to the supplier 6.5.2.10.
Follow up for replacement.
6.5.3. Order Cancelation From Supplier 6.5.3.1. Receive order cancelation notification from supplier 6.5.3.2. Write cancellation letter to commercial bank 6.5.3.3. Check and approve the letter of cancelation 6.5.3.4. Send the letter to bank 6.5.3.5. Receive cancelation confirmation and credit advise from bank 6.5.3.6. File the cancelation and credit advise copy in PO reference file.
7. Amendment History Revision: 0
Effective Date:
Approved By:
Reason Initial release
SOP for Procurement Follow Up Team
Page 40
11. SOP - Officialization/Declaration Document Title
Officialization/Declaration
Document No
SOP/PFT/11
Revision
1
Effective on:
1. Introduction Declarization involves in the process of collecting all import documents from bank, transistor, customs and finally authenticate the documents especially customs assessment declaration and supplier’s commercial invoice by National Bank of Ethiopia.
2. Purpose The purpose of this SOP is to define the processes to follow in the receiving of pharmaceutical goods from port transporting to warehouse.
3. Scope This SOP is applicable to all import carried out by the Follow-up Team of Procurement Directorate of PFSA.
4. Responsibilities Title Follow up Team and Banking & Insurance officers
Responsibility • Collect Original Customs Declaration and Original Shipping Documents • Submit to NBE and get authenticated
• File in PO referenced file document Team Coordinator • Follow up for completion of authentication by NBE
SOP for Procurement Follow Up Team
Page 41
5. Process map/Flowcharts
Get Original Customs Declaration Document and Com. Invoice
Reconcile Original Customs Declaration Document and Commercial Invoice value with Foreign currency Permit
Discrepancy
Bring documents to the attention of NBE’s Foreign Exchange Monitoring and Reserve Management Directorate
1. If Permit > Consumption get Credit note from Supplier 2. If Permit < consumption get additional permit from Bank
Get Stamp of Import Export Clearance Section of NBE
Properly file all import documents for future reference
6. Procedure 6.1.
Collect all original documents from Bank, Customs, Transitor and from Supplier
6.2.
Reconcile Foreign Currency amount of originally permitted versus actual consumption using Commercial invoice, Customs declaration format
6.3.
If the Foreign Currency permitted has variance with consumption. 6.3.1. If foreign currency consumption is higher than originally permitted, then get additional permit from NBE, for the difference amount, or 6.3.2. If foreign currency consumption is less than originally permitted amount, then get credit note from Supplier through bank for under purchase amount.
6.4.
When foreign currency consumption and permit of foreign currency amount equals bring the import documents to the attention of NBE’s Foreign Exchange Monitoring
SOP for Procurement Follow Up Team
Page 42 and Reserve Management Directorate. 6.5.
Get official stamp of Import Export clearance of NBE from the above directorate.
6.6.
Properly file all import documents for future reference.
7. Amendment History Revision:
Effective Date:
0
SOP for Procurement Follow Up Team
Approved By:
Reason Initial release
Page 43
12. SOP - Managing Performance Bond Document Title
Managing Performance Bond
Document No
SOP/PFT/12
Revision
1
Effective on:
1. Introduction Most of the time suppliers make performance bond deposit after signing of contract agreement to show their confidence on the delivery of goods or services in anticipation of collecting back the bond after fully satisfying their customers.
2. Purpose The purpose of this SOP is to define the processes to follow in the receiving of pharmaceutical goods from port transporting to warehouse.
3. Scope This SOP is applicable to all import carried out by the Follow-up Team of Procurement Directorate of PFSA.
4. Responsibilities Title Responsibility • Check Performance of Suppliers by reconciling with PO and ConBanking and tract agreement Insurance and Follow up Team • Prepare Performance bond release or cancelation letter to bank • Submit letters with bank and collect documents from bank • Inform suppliers Team Coordina- • Review Performance reports
tor
Procurement Director DDG
• Review written bank letter • Approve performance bond release or cancelation letters. • Approve cancelation of orders
SOP for Procurement Follow Up Team
Page 44
5. Process map/Flowcharts Receive Performance Bond from Suppliers Follow up the Expiry of Performance Bond and periodically update Check performance of the supplier for appropriate delivery of goods or services as per contract
Meet Requirements?
Write Letter to bank to release the performance guarantee
Inform DDG about the performance of the supplier and requesting cancelation
Inform suppliers about the release of the performance bond
Write cancellation letter to bank and collect performance bond Follow up with bank to check for the deposit of Performance bond
File the documents
Inform suppliers about the confiscation of the performance bond
6. Procedure 6.1.
Collect Performance Bond
6.2.
Regularly Follow up the expiry date of the Performance bond and in case of Expiry request supplier for replacement of the bond.
6.3.
Check for the performance of the supplier whether the goods or services are delivered as per the contract agreement details.
6.4.
If the deliveries of goods or services are as per the contract agreement, then write letter to bank to release the performance bond.
SOP for Procurement Follow Up Team
Page 45 6.5.
Inform the supplier the release of the performance bond
6.6.
If the delivery of goods or services is not as per the contract agreement, then inform DDG about the performance of the supplier and request for cancellation.
6.7.
Get approval from DDG and write cancellation letter to bank.
6.8.
Follow-up the deposit of performance bond into PFSA account
6.9.
Inform the supplier about the status of their performance and confiscation of the performance bond money.
7. Amendment History Revision: 0
Effective Date:
Approved By:
Reason Initial release
SOP for Procurement Follow Up Team
Page 46
13.
SOP – Routine Report
Document Title
Routine Report
Document No
SOP/PFT/13
Revision
1
Effective on:
1. Introduction Written reports are one of the basic tools that communicate the performance of activities and their achievements or challenges to work colleagues and managers. This helps to inform as well as get support in early stages. Therefore follow up team need to communicate their activities on periodically manner as weekly, monthly or on need basis.
2. Purpose The purpose of this SOP is to define the processes to follow in the preparation and submission of periodical reports by follow up team.
3. Scope This SOP is applicable to all import carried out by the Follow-up Team of Procurement Directorate of PFSA.
4. Responsibilities Title Responsibility Documentation • Check Performance of activities and periodically update the format officer, Follow up Team of• Prepare status report format and submit the reports on agreed ficers intervals and upon request Team Coordina- • Review Performance reports and communicate to PD
tor
Procurement Director
• Approve performance reports and communicate to concerned officials.
SOP for Procurement Follow Up Team
Page 47
5. Process map/Flowcharts
Create Reporting formats
Check performance of each procurement activity and update immediately Submit the reports to Team Coordinator for checking and approval to PD Communicate the report to concerned officials
File in the file document
6. Procedure 6.1.
Create reporting formats which will show overall information of the goods to be imported and to-date progress status.
6.2.
Regularly communicate with follow up team members and update the format on timely manner as activities happened.
6.3.
Submit the reports to follow up team coordinator or PD on weekly, monthly or upon request basis.
6.4.
Review the report and submit to PD for approval or for Information purpose.
6.5.
Communicate to concerned officials
6.6.
File for future reference purpose.
SOP for Procurement Follow Up Team
Page 48
7. Amendment History Revision:
Effective Date:
0
SOP for Procurement Follow Up Team
Approved By:
Reason Initial release
Page 49
Annexes Annex1 :List of Forms Form No
Form Title Log Book Truck Request Form Goods Temporarily Handover Sheet Transfer Voucher Payment Request Letter Inspection request to FMHACA Routine Report Forms
SOP for Procurement Follow Up Team
Page 50
Annex 2: List of workshop participants for reviewing the draft Procedure S.N List of participant 1 Abyot Adane 2 Bayew Liknaw 3 Bekele Ashagrie 4 Berhanu Bekele 5 Fozia Mohammed 6 G/Selassie G/Yohannes 7 Meseret Adugna 8 Mesfin T/Haimanot 9 Seid Ali 10 Seifu Moges 11 Tibebu Hailu 12 Wondimu Haile 13 Yared Debebe 14 Yared Yigezu
SOP for Procurement Follow Up Team
Organization PFSA PFSA PFSA PFSA PFSA PFSA PFSA Adroit Consultancy & Training Ser. PFSA PFSA PFSA PFSA Adroit Consultancy & Training Ser. PFSA
