purchasing process

The traditional purchasing process involved several steps— which get initiated when an employee realizes the need for an Item or Service. In almost all the cases, it is a reactive operational or clerical job that will follow once a need is realized.

. Purchase Requisition


(purchasing process)


The employee will submit a material or service requisition containing the details of required item or service to the immediate supervisor, who, based on the authority set, will approve the requisition. Usually requisition will contain description of the item and the quantity required. The approval authority will be typically set based on the nature cost and/or volume of the item or service. For example, standard office supplies for an individual may not need any approval. However, if there is training for which a set of office supplies are required, would need an approval from the concerned higher authority. On the other side, a desktop computer or flight ticket or hotel accommodation will always need an approval.

Once the material requisition (MR) is approved, it is given to the inventory/store/purchasing department. If that is a stoked item (like office supplies and MRO), the item will be issued to the requester. In case of a service, non stocked items and items that are out of stock, the purchasing team will initiative for the buying process.

A purchase requisition (PR) is the first formal document in the purchasing process. It is usually generated by the Purchasing department and approved by commodity managers and finance team. This will contain similar details like in a material request, however, may have same or multiple items required by various groups or individuals in the organization.A purchase requisition has the following purposes:

a. It sets the purchasing process in motion

b. It is a written record of details like quantities, any speciation etc.

c. It provides date for reference i.e., date when materials are required.

Dates are important in case responsibility for stoppage in production due to shortage of materials is to be determined.

Selecting the Supplier

The real purchase starts with finding the suppliers or service providers who can deliver the specific goods and services. Tenders and Quotations has been the traditional formal method of finding and selecting vendors. The company issues a tender notification seeking proposal from qualified suppliers. Tenders are usually notified through newspapers and other mass communication media as well as through direct communication with known or incumbent suppliers. Suppliers send the quotations along with other detail on the good or services as well as delivery terms.

Purchase order

Upon receipt of quotations, one or many suppliers will be selected based on the specific requirement to deliver the good or services. A purchase order (PO) will be send to chosen supplier(s) asking them deliver the goods or services. PO is the first legally valid document that companies send to its supplier. It is a legal agreement warranting to accept the goods or services delivered and to pay as agreed. Typically suppliers send a acknowledgement note for the POs received as an acceptance of the order and to confirm the delivery terms.

Receipt of Materials

Based on the agreed up on timeline, supplier will deliver goods or services. This will be notified through a Goods Receipt Note (GRN). At times, the delivery may not be in full, a partial delivery would be made based on the circumstantial requirements. The good will then go through the inward quality and acceptance process, passed good will be taken in to store, accounted in inventory and then issued to the requestor. Incase the goods get rejected for any reasons, it will be send back to supplier for replacement.

. Checking and Passing of Bills for Payment

Upon the goods acceptance, supplier send across Invoice which is a payment request for the goods or services delivered. Like in case of delivery, invoice can be for a partial delivery. A three point matching, i.e. tally Purchase Order with Goods Received with the Invoice, will confirm the integrity of the transaction. This gets entered in to the Account Payable (AP) system as a payable entry. Once the necessary finance approvals are done, payment will be made to the supplier through the agreed up on means and AP entry get updated with actual payment details.

Cost of campus politics

(this was the situation in KU when time for elections came calling!)

As the term of SGC come calling, many do aspire to replace them in office both as a long term ambition of being fulfilled or eyeing the SGC allowance that seems attractive to anyone who knows how expensive live at times can be in campus ranging from series of photocopies of hand-outs to maintenance fee.

SGC is a political organ of school administration benefiting both students and the university at large, the only problem is that, since it is highly competitive, students do align themselves playing national  and school politics thereby missing a point, furthermore, outside forces do affect the effectiveness of campaign   thereby splitting students into to groups based on tribes they in one way or another originate have  a link and that since everybody comes from a tribe, you will never blame anyone since  we are the products of our societies hence society is wrong! It either hides the truth or we were not told the truth while we were young.

(this was the situation in  Nairobi when polls turned to chaos  )

As Narok university politics comes to end, nobody keeps quiet, none speaks about the cash that may have been squandered, talk of the posters and banners you may have seen supporters singing and chanting names of their preferred candidates, that was noise for hire: a new profession in Kenya I tell you. Going by series of facebook updates, it instills fear in my thoughts that these campus politics is not cheap!, talk of banners, a single banner is nothing less than shillings 120 though by useful for a single day though it takes 2 weeks to campaign, this is amount that can keep you going  two days in school. Noise for   hire comes by nothing less than n a thousand on    crossfire’s and some days meaning it needs heavy pocket.

Good news is that, the current SGC will be  in position to control up to 2.5 million shillings though they do not have their account, the school still control this amount on their behalf.

In general ,let the best candidate win no matter who he or she is ,to candidates, once elected ,none will represent their supporters but the entire Narok university fraternity be it you were opposing or not.

   Nice times comrades .

Monetary policy and inflation
To compete in the kenyan economic markets, you need to understand what price stability, inflation (and deflation) are, and how monetary policy acts to control inflation in the kenyan economy.
The Central Bank uses monetary policy in order to maintain price stability. Price stability occurs when goods and services, in general, aren't getting rapidly more expensive (that's inflation) or less expensive (that's deflation). At present price stability is defined as keeping inflation "on average over the medium term" between one and three percent in an agreement set out between
the Minister of Finance and the Central Bank Governor.
The Central Bank adjusts the Official lending Rate in order to influence prices in the economy, and ensure price stability is maintained


(this is the houses the most powerful issues
 dealing with
 economic matters in kenya,it hosts the office of
 governor and several others)

The role of money
A long time ago, people traded by barter. When people barter they directly exchange goods and services for other goods and services. Money was invented because it solved many of the severe limitations of bartering. With money a person can buy from and sell to different people much more easily. Money also allows production and consumption to more easily happen at different times. It gives people the ability to save money and spend it later.

However, for money to work well it must be a reliable standard of value – just as a metre is a universal standard of length and a kilogram is a universal standard of weight. To perform that role, money needs to be an effective store of value. To be willing to exchange goods and services for money, you need to have confidence that the money will be of roughly the same value at a later date when you want to spend it.
What causes price stability, inflation and deflation?
The rate of inflation tends to increase when the overall demand for goods and services exceeds the economy's capacity to sustainably supply goods and services. Likewise, when productive capacity is greater than demand, the rate of inflation tends to decrease, and, if the excess capacity persists, deflation can occur.

By "demand" we mean the desire for goods and services that is supported by the means to purchase those goods and services.

By "the economy's capacity to sustainably supply those goods and services" we mean the level of production that can be sustained without shortages occurring.

Thus, throughout the economy, if factories are working flat out to meet demand, inflationary pressure may emerge. Factory staff will work longer hours, which may require overtime payments, thereby forcing firms to put up their prices hence cost-push inflation.

Conversely, if factories are producing more goods than they can sell, then to get rid of the stock that is building up they may have to reduce their prices. If enough do this the rate of inflation will start to fall

(...to be continued in the next blogging!)

vice in campus

vice in campus

you may have heard or you may have fallen a victim,things tend to happen so fast to an extend that it leaves many buzzled as to the intention of the one who does,campus is a community in its setting and as the saying goes:all sorts of character are found in it,i do subscribe such a thought too. engineers,doctors,entrepreneurs and whole set of proffessionals happen to be hosted in a one arena though none of them happens to enjoy better than the other since they are all students and that there are no suber students.

Even though university is associated with good things ranging from inventions,probosals etc,all vices tend to be mingled with vartues of all manner and that under conditions of ceteris peribus,student is bound to select what he or she wants to be.

(students of Moi university being ... upon demonsrating following
 security lax where mashoka had put in some effort chooping them off.)

Going by what students at Narok university have been lamenting about some ghost people who reab from where the did nnot sow, that theft of clothes line has in the recent time s shoot to an extend that none would wish to gumble on it,and who exactly is doing this? are they students or neighbours? the answer is yet to come but soon,a solution will come calling just like last semester where even though they dealt with different products(labtops) culbrits were nailed and the school at klarge will be concerned calling police or initiating negotations that will at the end see the culbrit  being left free.

what aggrevates theft in narok university?this is what many if not all will ask themselves.here are some of the reasons:

1.narok university is among very few instiutions where gates are used mostly by vehicles only since there are many other routes that pedestrians can use for instance gate B etc.

2.lack of fence hence access to the school can be from all directions,this backd by laxity of security personel on duty offers the best opportunity to those practicing the vice.

3.students themselves,narok university hosts upto 2500+ students there atleast as anything being stolen,atleast one of the student observes or spots the thug but since comrade power happens to be sick,none reports such a vice!

4.history,those who lost their probrties last semester and some were nabbed but none of those who lost were either compensated or imdemnified to their original position,this makes them to apply the rule of"one for himself and God for us all!"
4. Poor leaders in SGC accelerated byn lack of prober coordination between the student leaders and students in general.some otf this problems would be solved say having many hanging lines such that clothes are not crowded  togheter.this would ease security checks hence bidding theft goodby!

Coin and you!

As matters to do with the coin becomes tougher, each time when the sun shine, it has reached a time when each and every member in every society to be keen about what he does, many do claim that the Kenyan economy has risen in the most recent, they will go for extra mile and argue that businesses are shooting e.g in Eldoret, Zion mall may have induced residents into believing that the economy is really growing marked by various banks just opened their branches in it as if they had lacked to locate their bla bla!

Meet any sales person especially marketers and sales people and they really tell you what exactly happens in our arena. Lenders these days lend at a very high interest rate, sales persons who rely on commissions have or about to guit these lucrative posts not because they have somewhere else to work but due to declining numbers or client hence low monthly salary, also firms have trimmed retainer fee to a figure not attractive enough to cast away doubts.

Last and early this, civil servants were on the road in the name protest calling for increment of salaries for instance doctors and lecturers down their tools until their demands were met, others lost their jobs like the postal corporations whereas other firms employed various tactics to trim the number of employees like Eveready company limited.

Various bills have been to the parliament trying to rectify the economic downturn Kenya has experienced in the last two years.CBK governor has had sleepless nights ranging from being ranged among the worst performing governors of central banks in Africa. Also not mentioning the various committees formed to arrest the situation like meeting the parliamentary select committee almost after a month is a bit intimidating and wanting since he has to explain himself for every step he takes to rectify the situation and exploring most of his opinions to either unwilling respondents in either public or the said commissions and committee.

News nowadays is dominated by ICC rulings and earing, few media houses focus their attentions to dedicated members of the public who struggle to take their children to school no matter what it takes ranging from selling the few animals that remained after drought or remains of produce after the middle men conned them, no one remembers our brothers and sisters or parents who have dedicated their lives to serve this country by word and deed, human right activist do not protest when a policeman is shot by a thug but they are keen when reacting to a situation when a policeman guns down a gangster after a few exchange of bullets long before millennium to date, they even have no time to go to church hence what they do is a prayer in its making!