Large Purchases and CAP Ex Request Procedure

Large Purchases and CAP Ex Request Procedure


Effective March 2024

 

New Procedure


To better serve our internal customers, a new procedure has been implemented for large purchase and contract requests in excess of $40,000, with the exception of normal supply orders and IT Projects/Development/Infrastructure/Upgrades/Refreshes that originated with and were sourced through the IT team.

The goal is to streamline the process, gain appropriate approvals, and involve legal earlier, if needed.  Through this process, invoices will be billed against a Coupa Contract, instead of a PO, allowing for greater flexibility for changes needed and progressive billing.

The procedure provides transparency to leadership of the spend for financial planning and ensures proper approvals have been given.  

 Scope

The scope of this procedure includes any purchase/contract/agreement that exceeds $40k, except *normal supply orders and IT Projects/Development/Infrastructure/Upgrades/ Refreshes that originated with and were sourced through the IT team.
*Normal supply orders over $40k and purchases under $40k should go through the Coupa PO requisition/Coupa Contract request process. 

A pop up window on all PO requisitions over $40k will serve to remind users of this new procedure.

 

Examples of purchases that need to follow this process:

●     Asset Examples (Anything that requires amortization)

  1. Racking/Automation
  2. Vehicles/Trucks/Trailers
  3. MHE (Material Handling Equipment)
  4. Scrubbers
  5. Furniture orders over $40k

●     Project Examples

  1. Tenant Improvements
  2. Startup Expenses
  3. Construction/Site Improvements
  4. Automation
  5. IT/Development/Software Purchases and Implementation (excludes those that originated with and were sourced through IT)
  6. Security projects such as cameras, DroneDog, monitoring, etc

●     Service Examples

  1. Construction/Site Improvements
  2. Consulting Projects
  3. Software Purchases, Development and Implementations
  4. Maintenance plans (HVAC, Plumbing, Dock Doors, etc)
  5. Janitorial, Monitoring, Fire, Snow Removal, and the like

Procedure Overview:

1) GATHER INFORMATION REQUIRED PRIOR TO SUBMITTING FORM

PREPARE YOUR BUSINESS CASE -Following NFI’s procurement policy, prior to submitting a request, have your business case ready in Word, Excel, PowerPoint or PDF format to attach to the request and be prepared to provide a detailed justification and projected ROI.  See screen shots of the form at the end of this article for what other details are required. NOTE: You may download the provided justification template that is attached to this article and fill it out completely if you don't have a detailed proposal already. 
  1. If you entering in a multi-year agreement, your total request amount must be the sum of all years as well as estimated implementation/startup/travel charges, etc. 
  2. If you did not work with the Strategic Sourcing team, you have to submit three quotes along with your request or provide the justification how the item or service was appropriately price-vetted.
  3. This information will be shared with all decision makers in the approval chain up to the CEO, if required.  The more detailed the business case is, the better the odds of a smoother approval.

NOTE: Before moving forward to submit your request via the form below, please download the justification template that is attached to this article and fill it out completely, this will be required for approval. 
Click HERE to access the request form.   
See screen shots of form at the end of this article.  
Check with your accountant to confirm the correct GL billing account for invoices to be charged against.

3) APPROVAL REVIEW

  1. Once submitted, the form will go to Strategic Sourcing for a cursory review.
  2. At this stage, the team may recommend an existing program or supplier and/or loop in subject matter experts for their input.
  3. The request then will follow the appropriate approval chain based on content, cost, and which company/region/location will be paying for it.
  4. Any actual contracts will be reviewed and sent to legal if necessary.

4) AFTER APPROVAL IS COMPLETE - Coupa Contract and Award Letter (if applicable) are issued

  1. The Strategic Sourcing team will issue an award letter to the supplier.
  2. A coupa contract will be issued for payment/processing of invoices.  (A PO request should not be submitted as then it would require going through approvals again and cause delays.)  


SCREEN SHOTS OF THE REQUEST FORM









 

If you require assistance or have any questions, please send a email request to StrategicSourcing@NFIindustries.com