Revision Date 8/10/2023

 Date Effective 8/10/2019

PURPOSE 

The purpose of this document is to establish clear guidelines for procedures for purchase authority, approval levels and responsibilities. Failure to adhere to policy may result in disciplinary action, including termination.

SCOPE

This policy is applicable to all employees of NFI Industries, Inc., and its affiliates.

POLICY AND PROCEDURE

It is the Company’s policy that the authority to commit the company to subcontracts and purchase orders resides within the Strategic Sourcing Department.  The role of Strategic Sourcing is to help the organization get the best value for the product and services we purchase, reduce cost, reduce supply risk, and enable stakeholders to reach their business goals.

All purchases for NFI and its subsidiaries must be transacted via the Coupa Business Spend Management Platform, TMT (Fleet), Yardi (Real Estate) or Global and Brokerage’s appropriate systems.

VERBAL PURCHASE ORDERS will result in the supplier to NOT BE PAID for goods or services.

PO or Contract Number Required for ALL Purchases

Under no instance shall a commitment be made, or a purchase be consummated, prior to obtaining a valid Purchase Order (PO) OR Contract Number. This applies to all purchases regardless of the value.

Competitive Quotes Required

For purchase requisitions that are more than $5000, three quotes are required prior to submitting a requisition. The Strategic Sourcing Team is available to assist in competitive quotes. A request can be made from the Coupa Home Page using the “Request a Sourcing Event” form.

Vendors/Suppliers

The vendor chosen and indicated on the purchase requisition must be an active, current vendor of record in Coupa. Requests to add a new vendor can be made via the Coupa Business Spend Management system using the NEW SUPPLIER REQUEST form from the Coupa homepage.

All new supplier requests will be vetted by the Strategic Sourcing Team to ensure they meet various predefined criteria for selection, and approval is determined by the Strategic Sourcing Department.

LINK to Knowledge Base for additional information:  Supplier Onboarding Process

PO Changes

Any changes to the original purchase order requires a change order on that PO (the change request is initiated within the Coupa PO). Any changes made to an existing PO will be communicated to the requisitioner and supplier, and any change that increases the value of the purchase beyond an individual’s spend authority will go back through the approval chain.

Requisitions

Purchase requisition details need to be completed by the requisitioner and submitted for approval via the Coupa platform.

It is a violation of NFI policy to submit multiple requisitions below the policy or spend threshold to avoid submitting competitive bids OR to avoid the appropriate spend authority approval chain.

All requisitions MUST include the following comments/information, or they will be rejected and returned:

1.      Explain specifically why the purchase is necessary in the justification field.

2.      For free form requisitions, provide accurate and clear ITEM descriptions and include the supplier part number (if provided) in the appropriate field. Generic descriptions will not be accepted. Do not include taxes or shipping on the requisition.

3.      If over $5,000, three competitive bids are required to be attached to the requisition. If the lowest of the three bids was not chosen, provide the explanation as to why a higher bid was chosen in the comment section. IMPORTANT: Submitting multiple requisitions to avoid the competitive quote requirement or to circumvent the spend authority approval chain is a violation of NFI Policy.

4.      If the product or service will be paid for by the customer or required under the customer contract, tick the “Rebillable” checkbox and note the cost-plus percentage in the justification field, if applicable.

5.      If the product or service is not being paid for by the customer, or required under the contract, provide the Return on Investment (ROI) calculation or explanation to support the purchase in the justification section or add it as an attachment.

6.      If the requisition is for a repair or improvement to a building, confirm with Real Estate that it is an NFI obligation.

LINK to Knowledge Base for additional information: Creating a FreeFrom Req within Coupa

Receiving Purchase Orders

It is the requisitioner’s responsibility to monitor and manage the accuracy of the receipts of goods and/or services against your purchase order.

•  Receipts MUST be recorded within Coupa against a PO for the vendor to be paid.

•  Receipts should be recorded against the PO when the items are physically delivered or when the service has been completed.

• Damaged products should not be received in Coupa until the requisitioner has contacted the supplier to work out an exchange or credit.

• PO and Invoice quantities must match.  The requisitioner will need to request a PO change for increased or decreased amounts.  If less than the amount ordered was delivered, confirm with the supplier that the product is not on backorder before entering the PO change request.

• For assistance, submit a ticket to StrategicSourcing@nfiindustries.com  

 Purchasing Spend Authority Levels

The following outlines the proper approvals needed for all purchases based on the dollar amount for each order.  Approval is required before a PO can be issued to a supplier.

IMPORTANT:  It is a violation of NFI policy to submit multiple requisitions to avoid the proper spend authority approval levels.

Agreements and Contracts

All written agreements or contracts require the review and approval of the Strategic Sourcing Department. This includes service agreements, lease agreements, software agreements or anything in writing that causes NFI to be responsible for ongoing payments or services to another organization. Review by the Legal team may also be necessary dependent on the value, complexity, and nature of the agreement.

NFI Policy requires contracts to be signed by a senior manager (VP or above).

Contract Review Procedure

•  Submit a “Contract Request Form” from the Coupa Home Page (or use this link Contract Request Form) and include the turnaround time needed.

•  The requester will need to provide written approval for the spend value of the contract.

•  The agreement/contract will be reviewed, and the requester will be notified of whether it will need to go to Legal.

•  Once completed, the contract will be signed by Strategic Sourcing or the divisional VP.

Construction/Service-Related Transactions

A quote and a certificate of insurance must accompany requisitions for construction or any vendor providing on-site service. A minimum of $1,000,000.00 General Liability naming NFI additionally insured is required. No purchase order is granted until this information is received.

Gift/Rebates/Cashback/Bonus Offers

Unless it is a pre-approved rebate program put in place by the NFI Strategic Sourcing Team, it is against NFI policy to accept free gifts/bonuses/cashback from any supplier that offers such as a reward for that individual’s purchase.

LINK to Knowledge Base for additional information:  Gift Policy

Computer/Phone/Peripherals

All computers, computer peripherals (such as scanners and printers), phones and phone equipment are to be requested through the IT My Solutions Center.  This includes new employee set-ups, existing employee additional needs, or existing equipment that is not working properly.

All such requests are handled, starting with IT, then Strategic Sourcing.  NFI has a select range of computer and hardware models available, special requests will require management consent.  It is NFI policy violation to purchase the following outside of the IT My Solutions Center: Desktops, Electronic Notebooks, Laptops, Keyboards, Mice, Printers, Monitors, Projectors.

Key Contact:  ITPurchasing@nfiindustries.com

LINK to Knowledge Base for additional information:  IT Purchases

Invoices

ALL INVOICES for Coupa POs MUST be submitted via the Coupa Spend Platform. Vendors are instructed to upload their invoices either via a cXML integration or a manual upload into the Coupa Supplier Portal. ALL purchases require a Coupa PO or Contract Number for the supplier to be paid.

LINK to Knowledge Base for additional information: Invoicing Policy & Supplier Invoicing Instructions

PO/CONTRACT POLICY EXCEPTIONS

Due to the nature of some purchasing requirements, the following areas of spend are exempt from the need for a PO or pre-approved contract from legal:

• HR/Benefit related transactions including relocation (Does not include Contract Labor Expense)

• AR collection invoices

• Legal settlements

• Utilities and Telecommunications (Does not include equipment purchases and/or leases)

• Building rent and leases (Work with Real Estate-May result in a Coupa Contract)

• Insurance payments

• Postage

• Audit recovery fees

• P-Card activity

• Bank fees

• Equipment Maintenance/Service Agreements including forklifts (Must run through TMT, at times may result in a Coupa Contract)

• Forklift rentals (send request to mherentalrequests@nfiindustries.com) (Will result in a Coupa Contract)

• Advertising/Marketing - exempt from requiring 3 competitive bids