management of supplier partnership. scope of workshop 2 focus and actual processes of supplier...
TRANSCRIPT
Management of supplier partnership
Scope of workshop
2
Focus and actual processes of Supplier managementList of selected manufacturers
Necessary developments on the actual processOn-line pre-qualificationHSE requirements
Supplier management in SRM 5.0 system
Presenter: Mr. David Sojka
Shared ServicesSupplier Management Team
MOL-Group has more than
The Supplier Management team’s main objective are to keep the contact with themadditionally managing and evaluate their supply ability, MOL Group point of view!
10000 active suppliers!
The Supplier Management teamin MOL Group’s Purchasing department
MOL NyRt. SlovnaftTVK
Zsolt BársonyKlára Pataki (US P)
Piroska Ferkó David Sojka
Ágnes Jenei
Introduction of SHS Supplier Management
We also cooperate and provide services for: Gas, LUB, ISSC
Procurement – Supplier evaluation
Determination of requirements
PO processingGoods receipt / Service acceptance
Invoicing / Payment
Tendering
Suppliers’ selection - prequalification
Procurement
Continuous evaluation
Supplier management processes
Supplier evaluation and classification:
Consequential processes:
Maintenance of ERP Suppliers’ database: 3 different ERPs within MOL Group – SAP, Oracle and BPCS
► Prequalification process (new supplier) – common process and common prequalification questionnaire
► Continuous evaluation (contracted supplier) – common criteria but different methodology and different IT tools
► Classification – common grades (A, B, C, D) based on evaluation score
► Rationalization of supplier master database in ERPs – common process► On site audit at supplier – common process► Suppliers Block List – common process and list► List of Selected Manufacturers – in progress to be common process► Create the possibility to meet our suppliers in scope of the yearly Supplier
forums► KPIs and Reporting – shall be implemented and developed to common process
Potential partner or supplier’s pre-qualification
When a supplier pre-qualification?► New supplier► 3 years non active supplier► Unblocking supplier► Company data or activity update
Pre-qualification requirements?► Pre-qualification questionnaire► Tax office certification► Custom and finance certification► Signed questionnaire confirmation ►Technical documentation (catalogue)► ISO certification, if available
Data input to database - BMR?► Registry court data of company► Contact data of company► Pre-qualified activities► Qualification grade (A, B, C, D)► ISO certification data► Questionnaire uploading
Potential partner or supplier’s pre-qualification (Actual process)
Proposal forNew supplier
(market research)
Q>95? Q>55?
Is furtherassessment
needed?Satisfactory
Send PQto new supplier
Incoming PQ
Onsite audit/First sample/
Piloting
Notifysupplier
Prequalificationquestionnaire
Completed PQ,Prequalification
Documents,Certification sheet
BLOCK LISTASSESMENT
REPORT
Upload intodatabase
Loadassessment report
Into database
LoadAssessment report
Into database
Su
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MR
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YES
YES
NO
NO
YES
NO
YES
YESNO
Supply performance evaluation
Evaluated supplier is quarterly informed about its evaluation by scorecard
The „edge“ of satisfaction► „C“ satisfactory supplier – corrective actions must be applied► „C“ supplier within two consecutive quarters = „D“ unsatisfied supplier► „D“ unsatisfied supplier – proposal for Blocking
When a supplier continuous evaluation► Every closed order – after goods receipt / service acceptance
CD
A/B
Blocked quarterlyLess than 50 points
Keep in database just in special cases,improvements or be blocked
Evaluation Score: 50 - 74A: 90 – 100 B: 75 - 89
Evaluation scorecard of supplier’s performance evaluation
Price:Price:
Supply ability:Supply ability: Quality:Quality:
Customer satisfaction:Customer satisfaction:
• Price
• Payment terms
• Supplier’s efficiency
• Meeting deadlines
• Meeting ordered quantity
• Packaging
• Quality performance
• Quality Management System
• HSE system
• Active cooperation
• Flexibility
• E-procurement
Evaluated by Purchaser
Evaluated by Requestor (Services) by Warehouse (Material)
by Supplier management
Evaluated by Requestor (Services) by Purchaser (Material)
by Warehouse
Evaluated by Requestor (Services) by Purchaser (Material)
SEM ->SNBMR in MOL
Group
(Generally used for Pre-qualification at
all affiliates)
SupplierSupplierIssofice ->TVK
BMR ->MOL Rt, MOL LUB, ISSC, MOL Romania
Current cooperation of IT SM tools in MOL Group
SupplierSupplier
SupplierSupplier
SAPdatabase
ORACLEdatabase
BPCS database
Pre-qualification questionnaire
Blocking of suppliers
Supplier can be blocked:► Based on prequalification questionnaire, if MOL Group requirements not reached► Based on serious findings during the external audit, or not fulfillment of requirements for
improvements identified within audit► Based on poor performance of services, breach of ethical behavior or HSE requirements,
repeated low quality of product, etc.► Company is in liquidation or bankruptcy process
Blocking period of suppliers can be from 1 year to forever in serious cases based on Executive Board decision
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List of Selected Manufacturers (LSM)
Worldwide companies
and entities
List of suppliers
LSM
Potential suppliers base
To identify the manufacturers for Electric, Instrumentation and Mechanical machines, equipment and their spare parts.
Technical specifications (company standards) for
relevant equipment.
To identify satisfactory suppliers, their contact and commodity
information
Just to be a MANUFACTURER, registered on the List of suppliers and meeting with:
• production scope – in comparison with manufacturers from the Lists,• technical and metrological parameters of relevant products – in comparison with manufacturers product from the Lists,• fulfillment of valid legislation requirements and valid standards for relevant products,• fulfillment of relevant product (special) requirements - requirements which manufacturers from List are not able to fulfill,• manufacturers quantity in List from the unification point of view,• manufacturers quantity in List from the competition during selection process point of view.
► Unified Electric equipment, Instrumentation and Mechanical Equipment (Rotary machines and Stationary equipment) – company standards
► LSM implementation to prequalification process
Supplier Management
13
Questions and Comments
Scope of workshop
14
Focus and actual processes of Supplier managementList of selected manufacturers. (Vendor list)
Necessary developments on the actual processOn-line pre-qualificationHSE requirements
Supplier management in SRM 5.0 system
Presenter: Mr. David Sojka
Presenter: Mr. Zsolt Bársony
Opportunities of the actual and the on-line systems
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BMR systemAdvantages:- Controlled supplier registration - Automatic score calculation in the questionnaire
Disadvantages:- Multilanguage problem due tosupplier pre-qualification at activity classification- Uneasily manual registration- Missing automatic up-to-date possibility atSupplier’s main data (i.e.: attention, name etc.)- Supplier can not check the result of their ownquarterly evaluation
On-Line pre-qualificationAdvantages:- Solved multilanguage problem due tosupplier pre-qualification at activity classification- Automatic registration, and activity classification- Supplier can up-to date the company detailsdue to an controlled process-Up to dated supplier master database in ERPsystems- HSE requuirements can be published
Disadvantages:- Manually controll required due to registraion
Proposed developments for the optimization
Required developments on GIP portal
► Connection between BMR and GIP► Define pre-qualification categories at
registration part of the web page► Made this categories changeable by lead-
buyers► Possibility to send negative feedback to
supplier in case of declined registration► HSE requirement in refinery and it’s plant
releated activities will be presented.► Plant shutdown releated activities will be
implemented to the pre-qualification questionnaire.
► List of Selected manufacturers process
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Required developments in BMR
► Connection between BMR and GIP► Automatic upload possibility of
exported file from GIP
On-line pre-qualification process
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Proposal forNew supplier
(market research)
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Request forOn-line
pre-qualification
Passwrod forSUPPLIER
On linepre-qualificationwith the same
processlike to original
Is theDatabase
increasement required?
Password tosupplier
YES
NO
Negative note toSupplier
that the refistrationnot required
Prequalificationquestionnaire
The pre-qualificationcontrolled via GIP portal
Positive note toSupplier
With the user rights
The pre-qualificationcontrolled via GIP portal
Export theaccepted
questionnairefrom GIP
Exported CSV file
Import theCSV file into
the BMR system
BMR system dataimpoprt interface
Informative note to theLead-buyer of the
Pre-qualification result
Inform theLead-buyer
Required developments in the actual system
Proposal for connection between BMR and GIP
Brief logical shame for safe connection
Client
MOLInternetSupplier
managementWeb page
BMR
Firewall 1. Firewall 2.
Internet
BE
AF
ile in
tegr
atio
n se
rver
- Registration- Pre qualification possibility- Supplier data query
On-line pre qualification test system
Supplier registration:
-In case of potentialsupplier registration-Supplier is able to getauthorization to pre-qualifyitself on the GIP portal bye-mail and providingbasic company data
On-line pre qualification test system
- Controll on registration- Due to the pre-qualificationthe relevant partners mustaccept the relevant HSErequirements!-The Suppliers will able to reviewIt’s pre-qualification and evaluationResults.-There will be the possibility toupdate it’s company master data.
Scope of workshop
21
Focus and actual processes of Supplier managementList of selected manufacturers. (Vendor list)
Necessary developments on the actual processOn-line pre-qualificationHSE requirements
Supplier management in SRM 5.0 system
Presenter: Mr. David Sojka
Presenter: Mr. Zsolt Bársony
Presenter: Ms. Ágnes Jenei / Mr. Zsolt Bársony
The Three Pillars of the Procurement Transformation
1. Reorganization of Group Procurement (create competent specialists in strategic sourcing, contracting and transactional sourcing in all cost categories)
2. Implementation of an IT solution (Group Spend Management System-GSMS that is capable of synthesizing all necessary purchasing information out of the different ERP solutions is key to really integrated purchasing operations)
3. Professional knowledge, competency and capability building (ensure realization of efficiency improvement potential supported by the new organizational set-up and the proposed IT solution)
NON-HC PROCUREMENT organisation
Group Procurement
Maintenance Materials &
Services
Engineering &
Construction
General Services
EnergyProduction Materials
General Materials&
Communication Services
Mechanical Services
Technology Operation & Maintenance
Electrical Services
Pipes, fittings, pipe bundles, hoses
Electric materials, protective materials
Compressors & other rotating equipment
Mechanical materials & fittings
Mechanical equipment
Architectural work
EPC / Refining
EPC / Logistics
Retail
Process control & instrumentation
Basic design & licence
Technological work
Gas business
Logistics
HSE Petchem
HSE Refining & Upstream
Telecomm. Services
IT / Consulting & other services
IT / Software, licences and maintenance
IT / Materials & assets
HR services
Security Services
Facility Management
Financial & Insurance services
Electricity
Natural Gas
Other utilities
Biofuels
Refining Catalyst
Petchem Catalysts and Technological materials
Refining Additives
Petchem Additives & Chemicals
Chemicals and water treatment
Packaging & Laboratory Materials
General Material I. "White”
General Material II. "Blue”
General Material III. Corporate Communication materials & services
General Material IV. Marketing Communication materials & services
Shared Services
Local Coordinators
Group Corporate Services
US Procurement
International Procurement
Central-European
Procurement
Russia procurement
Oman procurement
Pakistan procurement & procurement control
Kazakhstan procurement & & procurement control, Yemen procurement
Public procurement of investment projects
R+D, Upstream Laboratory services procurement, surface services (public) procurement
Small projects (COP) procurement, well-site logistics, oil-gas related services
Field operation related service (public) procurement
System-Independent Holistic Business Model - Used for the SRM Concept
Operative Order Cycle
Creating procurement
order
Requirement definition
Requisition approval
Deliver, acknow-
ledgement
Invoice reception
and payment
Strategic Supplier Selection
Cycle
Analysis of needs and
markets
Supplier evaluation
RFx processes
List of possible suppliers
ContractManagement
Definition of strategy for selecting suppliers
Source: Capgemini 2005
Selecting suppliers,
closing contracts
Selecting products
and services
„It’s in the air.”(identified savings)
„It’s on the table.”(prepared savings)
„It’s in our pockets.”(realised savings)
Procurement Knowledge
Projects of the GSMS Program (SAP SRM implementation)
I. Phase
II. Phase
III. Phase
Operative & strategic processes, service
procurement, contract management
Extending new processes to materials
and implementing new functions
Roll out new processes to subsidiaries
3S non-CH project GSMS project
MOL
GSMS PROGRAMGSMS PROGRAM
New Organization structure and category management
Subsidiaries
3S: SAP Standard Solution, Non-CH team GSMS: Group Spend Management Solution
Main Development Areas: „Group Level” instead of „Corporate Level”
Main Development Areas: „Electronic Channels” instead of „Paper”
Main Development Areas: „Supply Base” instead of „Suppliers”
Register
Approval
Web Survey
Registration
RFQ/Auction
Send Questionnaire(s)
Response
Send Bid Invitation
Send Bid
Self EditingChange Vendor Data
CreateSupplierDatabase
Supplier identification
Supplier Identification closes the loop between the initial search and qualification and the operational use of suppliers
• Supplier Identification– Ability to complete Web-based registration process for new potetnial
partners– Customizable registration forms– Flexible, customizable questionnaires with Web survey tool from SAP®
• Category-dependent and category-independent questionnaires– Supplier prescreening for accepting newly registered suppliers– Monitoring of supply base changes:
• New suppliers created in SAP Enterprise Buyer (mySAP SRM) (via OPI or manually)
• Supplier data change in via SAP supplier self-services or mySAP SRM • Blocked suppliers
Details of Supplier Identification
mySAP SRM SAP Supplier Self-Service
WEB based, hosted application for Suppliers where the supplier can connect to procurer’s purchsasing modul (SRM, MM).
Ensure functions for suppliers to set up purchasing documents in a close system Together with procurer. The possibility of overview, modification and set up purchsasing documents expanded to both operative and strategical processes:
Purchse Order (PO) SA release orders Advise Note (ASN) Confirmation Invoice Credit Note Invitation to Bid Bid
The connection to SRM ensured by SAP Exchange Infrastructure (SAP XI)
Supports the suppliers to manage and maintain it’s relevant Master data: System user management from Supplier side Supplier cataloge Supplier master data (IBAN code, SWIFT code, VAT number etc.)
Supplier Self-Services advantages
Easy to use, customizable surface for Suppliers
User management for suppliers Communication due purchseing documents (i.e.: Purchase Order, Goods Receipt)
Allerting function, special workplace for open tasks
SAP Supplier Self-Service Start-Page
MOL Group Business expectation: Invoicing
- Purchase Order issue can be covered by only orders or contracts where the SAP/SRM (partely from MM system) uniqe IDimplemented on the documents in case purchasement of undertaking, material, tool and services.
-Therefore those partners don’t indicate the above detailed relevant ID’s on their invoices should calculate that theseinvoices will be sent back without processing.
-The received invoices must fit with legally required forms and contents additionally the proof of delivery must be attached tothe invoices. The Purchase Order’s SAP/SRM/MM identification number must be implemented on the invoice!
-The relevant Purchase Order ID shoud be implemented in the delivery note and each goods receipt documents also. Thedelivered goods must be listed according the item numbers of the purchase order. Without these information the not identificableInvoices (w/o order orcontract ID) the Procurer is going to handling as a false document and it will be sent back withoutcompensation. In this case the agreed peyment term begins when the missing information completely corrected.
If a Partner of us accomplish without receipt of relevant Purchase Order it is doable only it’s own RISK!
Financial transaction requirement:
Strategial partnership by SRM…
Traditional way… … by SRM…
Thank you for your attention!