Procurement: All kinds of organizational procurement, NGF always follows its developed own procurement manuals where clarify the procurement process include inventory control and management, storage and distribution, disposal and also monitoring system—all functions which are more appropriately classified as part of standard procurement system;

Procurement is so dynamic, in fact, that it requires constant analysis and monitoring by someone (or a team) within an organization. There is always more to know/more data to analyze/more forecasts to produce – all of which is a responsibility of procurement. NGF has been practicing in the following procurement process;

Step 1: Need Recognition: Procurement department must recognize a product is needed in order to purchase it. That product can be either a brand new item, or one that is being re-ordered.

Step 2: Specific Need: Procurement department must have specific requirements for various products and up-to-date on those requirements and order accordingly.

Step 3: Source/Examine Supplier Options: Every business needs to determine where to get their goods. NGF has an approved vendor’s list (this is a recommended practice) while others are still trying to determine who the best suppliers are. Once a supplier is chosen, organization should stick with that relationship and try to establish preferred pricing.

Step 4: Price and Terms: Once a supplier is chosen, organization should stick with that relationship and try to establish preferred pricing and specific terms (i.e. delivery).

Step 5: Purchase Order: The purchase order is used the formal contract used to buy the product. The purchase order outlines the price, specifications and terms and conditions of the product or service and any other additional obligations.

Step 6: Delivery: The transfer of the purchase order via email, mail or fax (email is highly recommended).

Step 7: Expediting: This stage addresses the timeliness of the service or materials delivered. Delays, for many businesses, are important. The purchase order will have expected delivery date information.

Step 8: Receipt and inspection: Once delivered, the receiving organization inspect and, subsequently, accepts or rejects the product. Rejection is almost always due to a damaged product.

Step 9: Invoice Approval and Payment: At this stage, three documents must match when the seller wants payment – the invoice, the receiving document (attached to the product) and the original purchase order. This is known as three-way matching. If there is a discrepancy, it must be resolved before payment is made.

Step 10: Record Keeping: The receiving (buying) organization must keep good records. This means saving all relevant documents for every completed purchase.