third party material procurement overview-instructions amanual

(2) Business Administrator BA

(Email notification from Sharepoint)

(1) Material Requirement MR

Raised by Project Manager/ Project

Engineer / Site Engineer

Verifies :

- Material Code

- Material costs

After verification PR Purchase Requisition is

prepared by BA

(3) If Material Code doesn’t

exist: Material Creation

Approval

PM & CPM

(4) Purchase Order PO

is created by Procurement Controller

Initiating digital signature on the SharePoint

(6) OC

Order Confirmation

received in 3 days

OC not received:

Reminder sent/Call supplier

by Procurement

(7) Logistic takes over

Weekly Report:

Pending PO status on

Sharepoint

BA informs

Procurement

Procurement gets all

the relevant data

from the supplier

Procurement creates

Material in SAP &

informs BA with the

material number

Delivery done– QA/QC to be notified

in case of critical

deliveries/installation

Third Party Material Procurement

Overview

(5) PO sent to the supplier

by Procurement Controller (involve quality

department for critical deliveries/works)

Logistic takes over

Delivery done– QA/QC to be

notified in case of critical

deliveries/installation

Verifies :

- Material

status

PTO

PTS Status alert

triggers to

Engineer

and PM

PM to

sign the PO

digitally

CPM to

sign the PO

digitally

Notification from SharePoint




PuM to

verify the

PO digitally

January 29, 2015 Third Party Material Procurement Overview NH

(1)

Subject Operator

Material Requirement Project Manager, Project Engineer, Site Manager

The procurement process commences with the need of material, initiator is the project manager, project engineer or site manager. The basis of this is the project procurement plan which has the Bill of Quantities (BOQ) prepared by the project manager during the PM stage “Acquisition phase”. A Material Requisition (MR) is raised using a standard material requisition template.

The initiator is responsible for the content of the MR. All MRs shall contain the following information:

- Description of the requested item, part no. - Quantity - Estimated price from price list / biding offer - Cost Centre of the requesting BU / Corporate

Department (in case of framework order) - WBS number / Project name - BID Tabulation (Price Comparison Sheet) or Single

Source Justification (MR Value > 15’000 AED) - Quotation attached - JTS costs

MR is not valid without proper JTS costs designation

Upload MR to SharePoint Update SharePoint with the following informations:

- Division - Category - JTS costs - Engineer - Business Administrator - Project Manager - Commercial Manager - Delivery instructions

(for direct deliveries to customer)

Standard Material Requisition Template [1.1]

See BID Tab [1.2] and SSJ [1.3] in attachments Screenshot SharePoint: Update initiator

BA Pool

Material Requirement MR

Raised by Project Manager/ Project Engineer /

Site Engineer


(2)

Subject Operator

Purchase Requisition Business Administrator

The Business Administrator has to check the content in the MR. BA checks if the material number is existing. In case the material is missing, BA will inform Procurement for Material Creation (3). The MR gets converted into a SAP Purchase Requisition (PR).

Update the SharePoint with the PR number. Put remarks if necessary.

Screenshot SharePoint: Business Administrator

PM Pool for approval CM Pool for approval Procurement Pool

(3)

Subject Operator

Material Creation Procurement Controller

(Manual)

BA provides sheet “Create New Material in MM in Sales Org 2513” BA provides sheet “Request for product specific data”, which they receive from the supplier

Attachment 3.1: Create New Material in MM in Sales Org 2513

See Request for product specific data [3.2] in attachments

No Material Name Material Type PlantDistr.

Channel

Unit of

Measure

Material

Group

Business

UnitProduct Hierarchy Profit Center

Purchasing

GroupValuation Class

Price

AEDSales Text

ECCN

CODESDE US HS Code

1

2

3

4

5

6

7

8

9

10

11

12

13

14

15

16

17

18

19

20

Prepared By : Tel:Date: Signature

to be send to Ms Rathi Manjunath

Create New Material in MM in Sales Org 2513

Business Administrator BA

(Email notification from Sharepoint)

After verification PR Purchase Requisition is

prepared by BA

If Material doesn’t exist:

Material Creation


Create a new Material: SAP - /nmm01

- Industry sector: Siemens International - Material Type: Trading Goods

- Organizational levels: 9913, 2513, O1

Find required informations in sheet “Create New Material in MM in Sales Org 2513”:

- Basic data 1 · Material · Base Unit of Measure · Material Group

- Sales: Sales Org 1

· Tax classification [default: 0]

- Sales: Sales Org 2 · Matl statisticsgrp [default: 1] · Product hierarchy

- General Sales

· Trans. Grp [default: 0001] · LoadingGrp [default: 0000] · Profit Center

- Purchasing

· Purchaising Group

- Accounting 1 · Valuation class · Moving price [default: 1]

- MRP 1

· MRP Type [default: ND]

- Foreign trade: Import data · ECCN Code

Material number

Screenshot SAP /nmm01: Initial Screen

Screenshot SAP /nmm01: Organizational levels

Screenshot SAP /nmm01: Input

Screenshot SAP example: /nmm01

Send to Business Administrator


(4)

Subject: Operator

Purchase Order Procurement Controller

(Manual)

Creating a new Purchase Order:

SAP 1. /nme21n 2. /nme9f 3. /nme23n

MR 1. MR excel template 2. Bid Tab or SSJ 3. Quotation

SharePoint

1. Email notification that PR is awaiting for action

2. Open MR

3. Check JTS costs on SharePoint

4. Compare Quotation with MR

(Is MR value > 5’000 AED than check BID or SSJ)

5. SAP /nm21n (a) Copy PR number which is mentioned

in the SharePoint, past in ‘Purchase Requisition Number’ and execute.

(b) change to layout “shajeem” to see which

are the required materials (c) Open MR and compare, pull the items

in the shopping card

6. Enter vendor name right on top

7. Enter store location (item overview) / Check in register Org. Data (header) for Purchasing Group: Purchasing Group / Store Location U47 = 0024 – IBT-BAU U48 = 0025 – CPS U50 = 0026 – LCM_SER

Screenshot SharePoint: 2. PO request example

Screenshot SAP /nm21n: 5. Pull line items

Purchase Order PO

is created by Procurement Controller

a b

c

Screenshot SAP: Structure

- Header

- Item Overview

- Item Detail

Screenshot SAP: Register

example


8. Check for price, currency and quantity in MR and

quotation (item overview)

9. Put delivery date as per usual for the vendor (item overview)

10. Put the right item text (item overview) :

Item text Standard Purchase Order: Supply of _ _ _ Framework Order: Hire of _ _ _

11. Material PO text (item detail, register: texts) Add additional item text

12. Header register: Delivery / Invoices Fill in Payment Terms & Incoterms

13. Header, register Texts: Add Standard header text

Add Shipping instructions for oversea supplier

Add Remarks In case of framework order, add a reference to the service agreement with this supplier. WBS number and project name are mentioned in the MR.

Screenshot SAP: Item overview example

Standard additional text for Framework Orders:

[Period]

which is re-measurable.

Scope of Works:

1. [description of work]

2. [description of work]

…

----------------------------------------------

- Purchase Order (P.O.) number shall be

referred

on all Invoices.

- All hand tools shall be

provided by [company Name].

- Invoices shall be submitted along with signed

time sheets of responsible Siemens

Projectmanager along with WBS element.

----------------------------------------------

The above PARTICUALR CONDIONS shall apply in

addition to Siemens LLC General Terms and

Conditions of Purchase & agreed Conditions

within Manpower Provider Agreement with

Ref.No [reference number] including

annexure 1-5 duly signed on [date]

between [company name]

and Siemens LLC BT.

Standard Header Text for Purchase Orders: Material which is delivered directly to RSA

Logistics requires to be delivered with 2copies

of the invoice which is mandatory. Kindly

inform a day in advance to Ms. Alta with the

Vehicle & Name of the Person no to arrange for

the gate pass before delivery of material.

Standard Shipping Instructions for Purchase Orders: Mode of Dispatch: by UPS A/C# W8786E

if <40kgs, by Agility if >40Kgs

Standard Remarks for Purchase Orders:

[WBS number] – [Project name] **Please find attached our General Terms and Conditions of

Purchase which forms an integral part of this

Purchase Order.


14. Header, Register: Communication

Sales Person: Person who submitted the quotation Your reference: Quotation number Our reference: ID number from SharePoint

15. Register: Partners

ZU: Signature Technical ZV: Signature Commercial (a) Search for names

16. Recheck everything, especially net price and quantity

17. Save PO in SAP, go to /nme9f and save as .pdf Check printer options (PDF-XChange Printer 2012)

18. Update SharePoint by the help of /nme23n:

- Project - Vendor - Proc Actions - PO number - PO created date - PO currency - PO value - Delivery Date

19. Upload PO .pdf-File to SharePoint

Screenshot SAP: Communication example

Screenshot SAP: Partners example

Signature regulations Screenshot SAP: PO created

See PO example [4.1] in attachments Screenshot SAP /nme9f

Screenshot SharePoint: Update SharePoint

a

≤ 25’000 AED

Technical Level 4

Commercial Level 4

≤ 150’000 AED

Technical Level 3

Commercial Level 3

≤ 500’000 AED

Technical Level 2

Commercial Level 2

> 500’000 AED& CC

Technical Level 1

Commercial Level 1


Approval by commercial signatory Approval by technical signatory Procurement Pool

(5)

Subject Operator

Sending Purchase Order Procurement Controller

(Manual)

Receiving notification from SharePoint: PO is signed.

1. Check Signatures

2. Prepare e-mail to current supplier - Addressee:

TO: Supplier CC: Logistic, Procurement Team, (for critical deliveries/works, quality management)

- Attachments: - PO - New Code Of Conduct - Standard T&C_UAE_Dec2014

- Text

3. Update SharePoint - Proc Actions - PO sent to the supplier date

4. Upload sent e-mail to SharePoint, via “PO Link”, “View PO”

Text example “email to supplier”:

Good evening , Please find attached Purchase Orders for your immediate processing. Kindly acknowledge the receipt of the same & advice the delivery date. Thanks & Best regards Nils Hass Procurement Team IC Building Technologies SIEMENS LLC 9/F, The Galleries - Building 2 Downtown Jebel Ali P.O. Box 2154 Dubai, United Arab Emirates

Screenshot SAP: Update SharePoint

Screenshot SAP: Uploading sent emails

Order Confirmation (Supplier)

PO sent to the supplier

by Procurement Controller

(involve quality department for critical deliveries/works)


(6)

Subject Operator

Order Confirmation Procurement Controller

(Manual)

1. Received OC - sent e-mail to logistic in case they are

not in the CC

2. Upload OC to SharePoint via “PO Acknolegment Link”, “View OA”

After 3 days, send reminder with ultimatum or call supplier

Screenshot SAP: Uploading Order Confirmation

Logistic takes over

(7)

Subject Operator

GRN Logistic Team

The acceptances of the delivery and the receipt goods or services (GR) are to be carried out by the Logistic Team. To process GRN, the acceptance of the goods or services must be validated by the original requestor (stamping / signature of invoices)

Delivery done

OC

Order Confirmation

received in 3 days

Logistic takes over


Attachment 1.1: Standard Material Requisition Template


Attachment 1.2: BID Tab

BID

Tabulation

ESN Code

S.No. Unit / Qty. Supplier 1 Supplier 2 Supplier 3 Supplier 4 Unit / Qty.

1 1.00

2

3

4

5

6

7

0 0 0 0

0 0 0 0

0

0 0 0 0

S.No. Response Response Response Response Response

1

2

3

4

5

6

7

8

9

10

11

12

13

14

PROCUREME

NT MGR

TECH

DIRECTOR

Tech.

Director

Exhange

Rates1 Eur = 4.76 AED AED

1 GBP = 5.88 AED AED

1 USD = 3.68 AED AED

Negotiations

Description

Warranty

Delivery Time in weeks

Signed Code of Conduct, NDA & CR

Second Round Discount

Third Round Discount

Budget

CNI (AED)/Nett Savings

First Discounted Offer

REMARKS : As per Selection Criteria

The Bid tab is issued for the issuance of LOA, all MR1

and MR2 criteria to be fulfilled prior to issuance of

Purchase Order.

Selected Supplier :

c4s easy registration

DAMEX, BPC check

Suppleir Approved with Client

Selection Criteria :

ISO 9001 or equivalent certified

Manufacturing Country (GVS)

PROJECT MGR

Supplier Audit

Supplier from FPL

COMM DIRECTORCOMMERCIAL

MGR

Risk Evaluation

Quote Comp. on ToCo

GVS Challenger

Frame Agreement

MR2 Criteria

Project Name

Description

Customs Duty ( If

applicable)

Total Cost of Ownershiop

( ToCo)

Project Description

Transport

Installation

CRSA for high risk country

DOR

ISO or equivalent certifications

Validity of offer

Sub Total:

Performance Bank Guarantee

Terms of Payment

Delivery Basis

Local Agent/Representative

Manufacture & Country of Origin

Commercial Compliance on complete Terms and Conditions

Technical Compliance on submitted documents

Code of Conduct, NDA & CR

MR1 Criteria

Liquidated Damages


Attachment 1.3: SSJ

Single Source

JustificationBuilding Technologies, LGR

SCM-BT

Date Dept Location

File references

Proposed Supplier

Description of product/services:

Order value :

Project Name (if applicable):

Reasons for not following 3 quotes / tender process

Quotation received from Supplier known to have required unique capability,

proprietary products or other intellectual property rights.

Insufficient time to obtain three written quotes. (Unforeseeable)

The need for security restricts the number of Suppliers selected to quote.

External customer specified

Item/Service is required to be compatible with installed equipment.

Supplementary or additional to previous competitively sourced requirement

Date of last sourcing :

No responses obtained from other invited suppliers

Framework Supplier / Preferred Supplier agreement in place

One-off advantageous opportunity for short lenght of time

Note: Please provide supporting documents wherever applicable (for e.g, document proof showing that Customer has

specified the product/ supplier)

Remarks/ Comments

Measures taken to mit igate risk

Please describe measures taken to ensure sole supplier source is comforming to market conditions

(such as : benchmark, cost calculation, other quotes,

comparison with references, with existing price, …)

Recommendation agreed by

Project Mgr Name Signature

Commerical Head Name Signature

Procurement / Supply Chain Mgr Name Signature

Requested by


Attachment 3.1: Create New Material in MM in Sales Org 2513

No

Mate

rial N

am

eM

ate

rial Type

Pla

nt

Dis

tr.

Channel

Unit o

f

Measure

Mate

rial

Gro

up

Busin

ess

Unit

Pro

duct

Hie

rarc

hy

Pro

fit C

ente

rP

urc

hasin

g

Gro

up

Valu

ation C

lass

Price

AE

DS

ale

s T

ext

EC

CN

CO

DE

SD

EU

SH

S C

ode

1 2 3 4 5 6 7 8 9 10

11

12

13

14

15

16

17

18

19

20

21

22

23

24

25

26

27

28

29

30

31

32

33

34

35

Pre

pa

red

By :

T

el:

Da

te:

Sig

na

ture

to b

e s

end

to

Ms R

ath

i M

anju

na

th

Cre

ate

Ne

w M

ate

ria

l in

MM

in S

ale

s O

rg 2

51

3


Attachment 3.2: Request for product specific data (1)

Template for Supplier Declaration Form

(Use letter layout for external correspondence)

Request for product specific data

Ladies and Gentlemen,

. In order to comply with foreign trade and customs legislation we require various product-specific details for the

products you sell.

Could you please therefore let us know

The classification according to the U.S. Export Administration Regulations the case of US products

(ECCN according to the U.S. Commerce Control List)

The HS code

The country of consignment/origin (LKZ) of the goods requested/ordered

Without this information it is not possible to ensure full compliance with the relevant legal requirements. The

information forms part of the commercial terms.

Please enter the code in the boxes provided for each item specified (see enclosure). Please return the

completed list to the

( ) address

( ) fax number

( ) e-mail address shown in

the header. Many thanks.

..............................................................................

Signature, company stamp


Attachment 3.2: Request for product specific data (2)

Siemens LLC Address of supplier:

Supplier number:

Transaction/order No.:

Item Product description Product code

Supplier

Internal

Siemens No.

HS Code or

statistical

commodity code

(8 digits)

ECCN

as per U.S.

CCL *1

Country of origin (country

code *2)

1

2

(Please use additional sheet if required)

In case above table is empty, we confirm the following regarding the items supplied by us to Siemens. 1. contains US origin, (Yes / No) or

2. any visible indication that item contains US hardware e.g. label „made in USA“ on product or attending papers; (Yes / No) or

3. any functional indication, insinuating to US content, e.g. US operation software, US application software, etc. (Yes / No) or

4. item purchased from a US company or US affiliated company? (Yes / No)

*1)

Details

If the product is not subject to U.S. Export Administration Regulations (not a U.S. product / no U.S. content

/ no U.S. manufacture under license) = No

If the product is subject to U.S. Export Administration Regulations = Specify the relevant ECCN (Export

Control Classification Number if possible, with sub-number (Example: 5D992b2))

*2) Country of origin (ISO Alpha2 Code – Example Germany=DE)

Company stamp, signature:

.......................................................

Place Date

Request form for export data, Date:


Attachment 4.1: PO example (1)

third party material procurement overview-instructions amanual

Documents