how saudi customs is embedding local content strategy into ... · •achieve financial and...

How Saudi Customs is embedding

Local Content Strategy into our

Program Strategy

28th Nov,2019

Safety Moment

What does Saudi Customs do?

Saudi Customs is government authority whose mission is toenhance the effectiveness and efficiency of customs services tofacilitate trade and enhance security for customer service

Saudi Customs mission is to participating in simulating theeconomics and enable the kingdom to be an internationallogistic centre by facilitating trades over the boundaries andreach expected revenue, the clients interests, save the countryand the communities effectively and efficiently

On the 1st Quarter of 2018Decision of the Council of Ministersapproving the Transformation of the“General Customs Authority" intoa Public Authority

Transformation Journey

• Achieve financial and administrative independence and get rid of bureaucratic

procedures

• Rapid decision-making regarding business development and performance

• Accelerate linkages with relevant ministries and government agencies

• Updating the regulations and legislations necessary for the work of the Authority

• Facilitate the conclusion of agreements with various parties to develop work

• Facilitate integration with the General Authority for Ports

• Accelerate the compatibility of work with the GCC Customs

• Seamless handling of various variables at work

• Accelerate the development of customs work in new ports

Key Benefits of Transformation

Saudi Customs Vision, Mission, and Values

Vision

To be the first in region that provides remarkable customs services to become a global

logistics hub

Mission

Saudi Customs Strategic Plan 2020 will contribute to stimulate the economy and enable the

Kingdom to be a global logistics center through: trade facilitation, revenue generation,

customer care, and protecting the country and society efficiently and effectively.

Values

Innovation , Team Spirit, Transparency, Justice and Equality, Discipline

Brief Statistics

3K+ Other Entities Staff

10K+ Customs Staff

2.3 Million Passenger Cars

1 Million+ Trucks

35K+ Buses

Saudi Customs Portfolio

Saudi Customs representing by Engineering Affairs managing the

implementation of projects at a total budget of about 600 million riyals

(Seaports, Airports)

In addition to the transferred projects from the Ministry of Finance,

which total budget is about 7.5 billion riyals.

TOTAL AMOUNT 8.1 Billion SR / 2.16 Billion

US

Portfolio Overview

Portfolio Overview

Roads

&Logistics

Commnication

Buildings

Wet Utilities

Dry Utilities

Housing

Petrol Stations

Security

Recreation

How Saudi Customs is embedding

Local Content Strategy into our

Program Strategy

ORGANISED BY

Saudi Customs Vision: To be the first in region that provides

remarkable customs services to become a global logistics hub

• Entity Project Management Office (EPMO) is the output of the National

Project Management Operation and Maintenance – Mashroat.

• Saudi Customs (SAC) is among the first of 50 ministries and government

entities that have been mandated to set up an EPMO.

EPMO?

SAC Strategy

Support Kingdom in building a

prosperous economy utilizing its strategic location

Increases the volume of

international trade between Asia, Europe

and Africa

Maximizes gains from

trade

Improve existing laws

and regulations

Open new trade routes benefiting Kingdom’s

logistic location

Our engagement principles with

supply chain:

• Long-term, not one-off

• Proactive not reactive

engagement / communication

• Firm yet fair supplier

relationship management

Aim

The aim of Saudi Customsis to be the “customer ofchoice” for leadingcontractors and consultantsworking in the Kingdom

Your key account

We’re acting in a way tobe chosen as your KeyAccount for high-qualityand unique projects

Saudi Customs – your “Customer of choice”

Projects – What’s in our multi-Billion SAR Pipeline?

Project Name إسم المشروع

Full Prototype الكاملالنموذج األولي

Remedial Actions

التحسينيةاألعمال

Housing (Amenities/ Landscape)

(المنظر السطحي/المرافق)السكن

2. Al Khafji Land Port الخفجي


Partial Prototype النموذج الجزئي

Remedial Actions التحسينية األعمال

Water Treatment Plant معالجة المياه محطة

Water Distribution Pipeline توزيع المياه خط

Housing (Amenities/ Landscape) السكن

(المنظر السطحي/المرافق)

Additional Housing (Social Improvement) السكن

(التحسينات اإلجتماعية)اإلضافي

1. Al Batha Land Port البطحاء


Full Prototype

الكاملالنموذج األولي

Remedial Actions


5. Al Wadiyah Land Port الوديعة


Modification to Prototype

النموذج األوليتحسين

Housing اإلسكان

6. Empty Quarter Land Port الربع الخالي


Full Prototype

الكاملالنموذج األولي

Remedial Actions التحسينية األعمال

4. Al Durra Land Port الدرة


Partial Prototype النموذج

الجزئي

Remedial Actions


3. Al Haditha Land Port الحديثة

2

1

6

5

4

3

SAC – 3 key elements of our offer to the market

• Present and future income streams - & the potential forsuperior revenues

• Longer term relationships e.g. Kingdom-wide frameworks

• Deeper, collaborative relationships

Sound financial outcomes

• Alignment of the supplier’s vision and objectives with SAC’sneeds. Examples: compatible technologies, sharing programgrowth plans, Local Content ambitions

• Suppliers engaged, and relationships nurtured as a ‘trustedpartner’

• Mutually beneficial

Clarity of our needs and wants

• Our behavioural signals and attributes evidence ‘trustedpartner’ status is a reality

• Attributes: openness to ideas, a willingness to collaborate andpay (on time!) for value, access to upper management

Our attributes

3 of the most pressing themes affecting Kingdom-wide procurement are:

• These 3 themes are reshaping how procurement is practised at SAC EPMO

• And it all starts with leadership…SAC EPMO leadership are committed to:

SAC being a “customer of choice” for contractors and consultants

Theme Opportunity

Sustainability Local Content, low carbon emissions, long-term relationship with contractors

Ethical supply chains Collaborative problem-solving, Saudization, treating contractors, sub-

contractors fairly

The relationship between legislation

and innovation

Framework Agreements, Advanced payment. Focus on outcomes not just

outputs

SAC EPMO Procurement – good for business

Local Content is the total spend in the Kingdom

of Saudi Arabia on Saudi components within

labor, goods, services, assets and technology

LCGPA Goals

Increasing the actual

value contributed to the

economy of Saudi Arabia

Increasing the proportion of

expenditure on goods and

services provided by in-

Kingdom suppliers

Promoting international

competitiveness and

exports of Saudi

business

Increasing investment in productive

capital assets in the Kingdom

Local Content Strategy

• The Local Content Authority (LCGPA) is a key customer in 2019 and from 2020 wider including implementing

partners.

• SAC EPMO Offering to LCGPA :

– A stand alone procurement and tendering knowledge transfer service to Local supply chain to enhance their

engagement and competency as supply chain partners of SAC EPMO – aligned with SAC goals.

• Local Content (LC) is a key differentiator to support and augment the SAC EPMO brand values;

• Align LC strategy with business strategy;

• Ensure LC strategy and execution plan adheres to a formal, disciplined process;

• Use SAC EPMO a) intellectual capital and b) technology to stand out – online and offline.

Aim: Build pipeline for LC

LC Strategy – Aim and objectives

LC objectives through 4 workstreams

Increase LC capability

coverage through

knowledge transfer in key

sectors addressed by

SAC EPMO

- delivered through the

Building Capability work-

stream 2

Build profile internally

and partner with one

external organisation


Partnerships work-

stream 3

Deliver target

expenditure


Delivery work-stream 4

Create three aligned

propositions – enabling

opportunity, knowledge

transfer, stakeholder-

tested and refined


Proposition Development

work-stream 1

Work-stream 1 - Proposition development

SAC EPMO proposed procurement advice and up-skilling programmes as a key differentiator of the SAC Local Content offering

As a result, the following are the three LC propositions and associated Issues:

Proposition Descriptor

Enabling opportunityEnsure procurement strategy and documents embed local content

opportunities/requirements

Knowledge transferEquipping supply chain people and stakeholders with valuable procurement and tendering

skills and knowledge

Increase SAC visibilityLocal Content Thought Leadership and marketing messaging to create SAC brand affinity

through engaging directly with specific audiences.

Issue Descriptor

KPI Stakeholders’ value systems insights embedded in the 3 propositions

Planned activitiesIdentify target stakeholders; Cultivate relationship with target stakeholders to engender trust

to secure authentic stakeholders’ value systems insights

Metrics and measuresMetric : Percentage of expenditure; Positive response

Means of measuring: LC propositions survey

• Increase LC capability coverage through knowledge transfer in key sectors addressed by SAC EPMO

• Principal goal: LC supply chain wanting to engage with SAC EPMO’s procurement.

Work-stream 2 – Building capability

Issue Descriptor

KPI Assessment of skills needs; Development of training packages/events against need

Planned activities Identify target stakeholders; Cultivate relationship with target stakeholders to engender trust

Metrics and measures

Metric : number of local supply chain representatives engaged; number develop and deliver

required training packages/events

Means of measuring: training/event participant feedback; LC propositions survey

Work-stream 3 - Partnerships

Issue Descriptor

KPI1. Internal - LC thought leadership and marketing messaging awareness and understanding

2. External - Memorandum of understanding (MoU)

3. External – LC thought leadership and marketing messaging awareness and understanding

Planned activities

Internal:

• Prepare LC collateral and events for internal profile awareness

• Test current understanding of LC and visibility

• Design ‘alignment’ plan based on test results

• Engage with the LC steering committee to present LC case, obtain guidance and investigate existing stakeholders

External:

• Prepare LC collateral and events for external profile awareness

• Test current understanding of LC and visibility

• Design ‘alignment’ plan based on test results

• Engage with identified stakeholders’ decision-makers to present SAC EPMO LC case to explore mutually

beneficial working relationship

• Devise content management plan


Internal:

Metric : number of SAC EPMO engaged; number develop and deliver required collateral and raining

packages/events

Means of measuring: collateral, training/event participant feedback; LC propositions survey

External:

Metric to be achieved• MoU Co-signature

Means of measuring• SAC EPMO LC steering committee approved

• LC propositions survey

Work-stream 4 - Delivery

Issue Descriptor

KPI Expenditure with Local Content Supply Chains, including Saudization programme

Planned activities

•Resource management process to deliver LC strategy

•Lessons learned reviews against completed procurement projects

•Review Tender forms/ evaluation models to ensure high profile of LC requirements from

Tenderers


Metric

•Percentage of expenditure

Means of measuring

•Based on monthly report for SAC EPMO contractors and suppliers

Local Content Methodology

Local Content Plan evaluated and Audited via third Party assigned by LCGPA in accordance to the following

KPIs:

Tip :

Give clear, precise

information in your

submissions

1.

• Register on the ETIMAD portal - https://etimad.sa/

2.

• Notify our Team when you have your ETIMAD Registration No.

3.

• Prepare your prequalification submission

4. • Keep us informed on your companies status

5.

• Look for Tender Notifications on the ETIMAD Portal

6.

• Keep an eye out for our prequalification questionnaire

Procurement process – What do you need to do?

https://customs.gov.sa/en

[email protected]

+966112663777

INVEST SAUDI:

https://investsaudi.sa/en/

SAUDI ARABIA GENERAL INVESTMENT AUTHORITY:

https://sagia.gov.sa/en/

Contact Us

mailto:[email protected]/en


https://investsaudi.sa/en/

https://sagia.gov.sa/en/

tel:1918


Please don´t forget to collect your

CPD certificate during the event

from any of theCPD collection

points.

Thank you شكًرا لكمfor attending the presentation

ORGANISED BY

how saudi customs is embedding local content strategy into ... · •achieve financial and...

Documents