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Purchasing Challenges
Suez Canal Container Terminal
Purchasing Opportunities
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Purchasing Challenges ….Opportunities and enhancements
Suez Canal Container Terminal
Purchasing Opportunities
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Topics
1. Core business strategiesA. Consignment deals / new items.B. Strategic items. C. Building historic price for non-coded services.D. Suppliers’ manual.E. Emergency Team.
2. People
A. Training and Motivation.
B. Awarding .
Suez Canal Container Terminal
Purchasing Opportunities
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Purchasing OpportunitiesCore business
strategiesCost Saving
Suez Canal Container Terminal
A- Consignment Deals / new items
Target : remaining inventory parts "fabricated” In 2012 :
Spend (k $)
Purchase orders
0100200
73 6
30 62non consignment consignment
By the end of 2013:
Consignment0
50100150
15
100
Spend (k$) Purchase orders
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Suez Canal Container TerminalPurchasing Opportunities
Core business strategies
Cost Saving
Benefits Spend under consignment category
Inventory value. Cash flow enhancements. placing purchase orders and subsequent actions. Time for more enhancements in other areas.
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Suez Canal Container Terminal
Purchasing OpportunitiesCore business
strategiesSRM/Supplier SegmentationB- Strategic items
1. Critical Spare PartsA. Recent Egypt's circumstances are reflecting unstable situation.B. Precise follow of SCM/ Stores & Purchasing existing stock /
scheduled deliveriesC. Plan B for sudden consumptions / behind agreed DT :
A. Other suppliers ( Data base).2. Fuel
A. Visibility study of constructing new tanks B. Good supplier management
Early notifications with sudden shortage / prices increase
right decision 3. Electricity
Two PEX . projects working on power Saving1. All SCCT Staff PCs. Turning off after two hours with no
activities2. Administration building corridors lights turning off in day
hours .
Basic
Strategic
Valued
Preferred
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Suez Canal Container Terminal
Purchasing OpportunitiesCore business
strategiesCost Control
C. Building historic price for non-coded servicesThe power of tracing historic prices is to negotiate against any increase / mistaken offers.
I. IFS is a powerful tool for tracing item’s historic price.II. Same has been applied to some parts repairIII. Tracing non coded items / services is difficult due to tangible differences
in I. DescriptionII. Spelling !
Target is to code regular services with unified structure Triggered services :
Equipment Name Equipment Number Glass position Service Type
TR- 41- Front Glass- Supply
Install
Required equipment
Capacity Required for (Equipment)
Equipment No. Service Type
Mobile Crane- 5 Tons- CRA- 15- Rental
In scope : regular non coded items ( plumbing materials)Glass installation related services ( providing plates / rubber items)
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Suez Canal Container Terminal
Purchasing OpportunitiesCore business
strategiesDocumentation
D. Suppliers’ Manual• To define a relative service/supply provider :
1. IFS.2. Supplier company profile.3. Experience
o Target is to include all in one interface ( M.S. Excel sheets / access data base)o Suppliers categorizationo Market categorization ( domestic / overseas)o Supportive purchase orders numberso IFS code
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Suez Canal Container Terminal
Purchasing OpportunitiesCore business
strategiesDocumentation
Supplies (ENG)
Mechanical
Hydraulicelectrical
Civil
consumables
CRC-WD40-locotite / raw
materials
Bearings / shafts/sleeve
s
Pistons / accumulator
sMachining Services (repairs)
electricalMechanical
Hoses/ Pistons/fitting
s
Cables / CBManufacturers
ZFBUBANZER
SCANIASIEMENS
SIBRE
Services (others)
Accommodationtransportation
Supplies (IT)Other
FA SoftwareHardwareSoftwareHardware
Supplies (Others)
ADM. supplies
PPEOPS.
Supplies
Beverages/ stationary… SS/SG/Helmets/HarnessLashing
equipments
ID Name Examples (PO REF) Contact Person Mail Tel Mob Fax
A-SW-0049 NetwriXNetWrix Identity Management Suite (24475) Norm Couture . .norm couture@netwrix com 1-813-774-6472 x977 888-638-9749 x977
A-SW-0050 Symantic Secure Site Pro SAN certificate (28144) Agata Pajor [email protected] 41 26 429 7729 0800 56 29 24
ITGLO Global Brands Microsoft Licenses (23580) Ahmed Samir
Ahmed Samir [[email protected]]
+202 26186800 EXT (1216) 0111 65 65 000
+202 26182247
A-CM-0010 Mobiserve Internet Solutions. (24865) Mohamed [email protected]
20 2 2613 1350 Ext.: 3587 20 122 3933 730
20 2 2613 1355
A-SV-0296DCS TELECOM SAE Internet Solutions. (28917) Mohamed Saad Finance [email protected] 20 2 2400 6920
01062773770 - 01025009866
A-SV-0296DCS TELECOM SAE Internet Solutions. Ghady Raafat [email protected] 202 2400 6900 EXT. 602
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Suez Canal Container Terminal
Purchasing OpportunitiesCore business
strategiesPeople
E. Emergency teamsCurrent circumstances from strikes and Civil disobedience may
prevent working in full capacity forming two layers / backups of employees can do the
assignments alternately
Fixed structure with internal dynamic setup .
out of field assignments will be applied to team members in form of SMART objectives
BenefitsKeep the wheel running with allowable -minimum capacity.More experience .Opportunity for finding out potentials .
Domestic SuppliesOverseas supplies
Domestic SuppliesAdministrative
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Suez Canal Container Terminal
Purchasing OpportunitiesPeople
A. Training and Motivation key elements of increasing performance Stretching skills to cover non-comfort zone areas
Essential trainings : Core Business constructions contract / FIDIC General emotional intelligence
Monthly / Quarterly meeting (in/off) site
B. Awarding Assuring that all individuals having same level of
experience and training Achieving assigned objectives is a must Tests that measure competencies will pave the road to
potentials
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Suez Canal Container Terminal
Purchasing OpportunitiesWarp up
5 Rights are building purchasing Strategy
We spend every Dollar professionally
Right Source Right QTY Right Price Right time
Mar Apr May Jun Jul Aug Sep Oct Nov Dec
Opportunity 1
Opportunity 2
Opportunity 3
Opportunity 4
Opportunity 5
Consignment deals (W=4)
Strategic items management (W=4)
Emergency Team ( W=2)
Suppliers’ manual (W=2)
Coding repetitive services (W=2)
Right Quality
More integration / cooperation with SCM / other departments : Freight forwarders performance evaluation (W=3) VOC.
I. Challenging high-lead time suppliers linked with global FA(Siemens/ HP) (W=4)
II. Enforcing MPRO to change HP purchasing model . (W=3)
Stores
Proc.
Log.
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THANK YOU
Suez Canal Container Terminal
Purchasing Opportunities