e-procurement supplier awareness session

The Petroleum Oil and Gas Corporation of South Africa (Pty) Ltd Reg. No. 1970/008130/07

e-ProcurementSupplier

Awareness Session


AGENDA

Opening and Introduction Sagran Naicker

Overview & Procurement at PetroSA Comfort Bunting

Business Processes Comfort Bunting

Demonstrations Sagran Naicker / Mluleki Ntlemeza Christina Meyer /

Alan Goodway

Q&A & Closing ALL


OBJECTIVES OF THIS DISCUSSION

• Give an overview of the procurement process at PetroSA

1

• Give an overview of the electronic procurement process at PetroSA

2

• Understand the applicable laws and legislation governing procurement at PetroSA

3

• Common understanding of Supplier’s, User’s and Procurement’s requirements

4

Aligned Suppliers, Users and

Procurement community


PROCUREMENT PHILOSOPHY


PetroSA’S POLICY INSTRUMENTS AND PROCEDURES ARE ALIGNED WITH RELEVANT LEGISLATION

PetroSA policy and procedures

• BBBEE

• Procurement

• Employment Equity

• Skills development

• Corporate Social Investment

• Supplier development

Aligned

policies

and

procedures

National legislation / policy• Constitution of SA

• PFMA

• BBBEE Act, 2003

• PAJA

• The Employment Equity Act

• The Skills Development Act

• Preferential Procurement Policy Framework Act

• Codes of Good Practice for BBBEE

• Liquid Fuels Industry Charter

• NIPP/CSDP


PROCUREMENT AT PetroSA

Where do we advertise?PetroSA advertises tenders/quotations for goods and services on the

internet (www.petrosa.co.za or www.procurement.petrosa.com) or in addition, in the printed media, the Government Tender Bulletin (www.info.gov.za/documents/tenders/bulletins.htm ), SASDA (www.sasda.co.za), Quantum

How do we select? Through our auction, quotation and tender process


EVALUATION OF TENDERS


WHAT DO SUPPLIERS NEED IN ORDER TO SUPPLY GOODS & SERVICES TO PetroSA?

1. You need a purchase order generated on the SAP system. This document can only be obtained from the Group Supply Chain (Procurement) Department

2. You need a written contract signed by the CEO, CFO or duly authorised VP. No other employee of PetroSA is authorised to sign a contract on behalf of PetroSA

Employees (irrespective of level within the organisation) are not empowered to instruct a Supplier to provide goods or services without any of the above documents.


BEE COMPONENTS

Conducive Environment

Skills Dev /Capacity Bld

EmploymentEquity

PreferentialProcurement

EquityParticipation

Financial and Other Support

Supplier Development

CorporateSocial Investment

Implementation, Evaluation, Monitoring and Communication


WHAT IS e-PROCUREMENT?

e-Procurement is to Procurement what eMail is to Mail and is simply the business-to-business purchase of supplies and services using the Internet

e-Procurement and eMail share the following benefits: Automation and simplification, Reduced cycle times leading to increased productivity, improved tracking and transparency

Mail

e’Mail

Procurement

e’Procurement


BENEFITS of e-PROCUREMENT

Generic

Compliance benefits - arising from increased use of approved suppliers with whom we have negotiated advantageous contractsTransaction benefits - arising from reductions in the cost of processing manual procurement transactionsInformation benefits - additional negotiating power derived from better procurement information, and identification of opportunities to consolidate spend across business units and streamsTransferred supplier benefits - price reductions offered by suppliers because of increased efficiencies and higher volumesProject benefit - price reductions in construction contracts etc derived from contractors' use of the client’s enhanced spending powerWeb-powered sourcing savings - arising from internet capabilities such as reverse auctions

PetroSA

Savings derived from driving delivered pricing down – estimated at ± 5%pa

Improved and reduced turnaround times

Standardised approved tender documents

Standardised procurement processes, and filing system

Improved transparency

Reduction of transgressions & possible corruption

Automation of tender processes

Electronic evaluations and auto calculations of scoring

Up to date supplier database with correct categorisation

Up to date market information/intelligence (management reporting)


BENEFITS OF E-PROCUREMENT FOR SUPPLIERS

Generic Benefits

• e-Procurement provides suppliers of all sizes access to opportunities at PetroSA

• ability to receive standardized electronic orders

• manage complex bidding opportunities

• migrate customer service functions online

• reducing the overall cost of sales

• reduces much of the manual work associated with offline processes and paper-based orders

• freeing sales representatives to spend more time building valuable relationships with their customers

• reduce tendering turn around times

Practical Benefits


BENEFITS OF E-PROCUREMENT FOR SUPPLIERS

• Improved efficiency• Reduced costs• Sustainable

competitiveness

Practical Benefits

• Various mechanisms to submit responses, lowering risk of loss of information

• Warning signals if vital information has not been entered, making sure that critical information required by PetroSA is not overlooked.

• No need to submit tax clearance certificates, BEE certificate and registration questionnaires with every tender

• Manage own details• No pressure to read newspapers for upcoming tenders• Supplier is allowed to respond, or re-submit responses as

often as is necessary until the closing date and time of the tender / contract amendment.

• More structured tenders / contract amendments making it more understandable

• Historic, electronic data of previous tenders and / or contract amendments

• Less time and manpower required to respond to tenders / contract amendments


WHAT DOES THIS MEAN FOR SUPPLIERS?


e-Procurement – Business processes

• supplier registration

• updating supplier information

• Auctions

• quotations

• Tendering

• eRS

• uploading attachments / documents


SUPPLIER REGISTRATION PROCESS

http://www.procurement.petrosa.com/



5 screens to fill in

Registration phase 1



Registration phase 2

Fill in all screens



Updating your information



Fill in all screens

Updating your information


SUPPLIER ACCREDITATION PROCESS

Database Administrator notified

of new registration

Database Administrator verifies that all mandatory details are completed and all supporting

documents attached

Are all details and documents

avaliable?

Database Administrator notifies supplier of missing information via e-mail from

RFx module

Database Administrator verifies the integrity of the information by

doing a desktop due diligence

Are all details and documents

correct?

Database Administrator approves vendor

A

B

B

Documets:Tax Clearance Certificate

BBBEE CertificateCompany Registration Documents

BBBEE Score cardsFinancial Statements

COID CertificateID documents (directors/owners)

Share CertificatesArticles of Association / JV / MOU

Franchise rightsAgency Agreements

etc

Links:CiproSARSDTIITC

SABSSAQABanks

UniversitiesHome Affairs

etc

Status – pre award:Registered – not yet

approvedApplication denied

Provisionally Approved – pending due diligence

Status – post award:

ApprovedBlocked

SuspendedBlacklisted


THE E-PROCUREMENT PROCESS

User creates request for service / material on SAP. No more paper

RFT. Scope of work / Specifications and Technical

Evaluation Criteria attached to requisition on SAP

Workflows to cost centre holder for release on SAP /

LOA

Interfaced to e’Procurement tool upon

release

Procurement / T&C Consultant prepares electronic RFT / RFQ /

RFP on e’Procurement tool

Electronic RFT / RFQ / RFP document issued to all

Suppliers within that category via e’Procurement portal

Suppliers prepare and submit their electronic

quotes / tenders / proposal via the e’Procurement

portal

Received quotes / tenders / proposals evaluated electronically

on e’Procurement tool

Report and recommendation prepared and issued by

e’Procurement Tool

Contract / Purchase Order interfaced back to SAP for release

to chosen Supplier

Recommendation sent to PC for approval (electronic

or manual)

Procurement Process


THE PROCESS – CONTINUED (ISS)

Approved Requisition from

SAP

Requisition consolidation / submit

table

Buyer picks up requisition in ISS Table and selects mode of buying

Buyer selects quotation mode and prepares RFQ

with all specs

Buyer selects tender mode and prepares RFT with all specs

Buyer selects auction mode and prepares the Auction with all specs

Option 1 Option 2Option 3

Common ISS Database – common to all 3 options and contains

1. Supplier database2. Material Masters3. Service Masters

4. Templates5. Specifications

6.Etc



Buyer selects quotation mode and prepares RFQ with all

specs

Issues RFQ after all approvals

Receives quotes from suppliers – evaluation done by ISS system according to pre-approved evaluation criteria

Recommend and on approval pro-forma PO sent to SAP


Option 1

Option 3

Shortlist and then auction

NO

YES

Buyer does final processing on SAP



Buyer selects tender mode and prepares RFT with all specs

Issues RFT after all approvals

Receives tenders from suppliers – evaluation done by ISS system

according to pre-approved evaluation criteria

Recommend and on approval Contract sent to SAP

Buyer selects auction mode and prepares the Auction with all

specs

Shorlist and then auction

NO

YES

Option 2

Option 3





Publishes auction after all approvals

Buyer administers auction at set date and time

Suppliers bid according to published specification

up to date evaluation done by ISS system – according to pre-

approved evaluation criteria

Recommend and on approval pro-forma PO or Contract sent to

SAP

Option 3



ACCESSING TENDERS / QUOTATIONS / AUCTIONS

http://www.procurement.petrosa.com/


ACCESSING TENDERS / QUOTATIONS / AUCTIONS


QUOTATIONS

Supplier submits quotations• Submit the quotation online or• Download the eRS package, completes quotation, then submit later

For online quotation select item number


QUOTATIONS

Supplier submits quotations


QUOTATIONS


Repeat the process for all line items


QUOTATIONS

Uploading Documents / Attachments


QUOTATIONS



TENDERS

The Supplier clicks on My Tenders

Select tender


TENDERS

Supplier submits tenders• Submit the tender online or• Download the eRS package, fill in tender, then submit later

For online tender select item number


TENDERS

Supplier submits tender


TENDERS

Supplier submits tenders

Repeat the process for all line items


TENDERS

Uploading Documents / Attachments


TENDERS

Supplier submits tenders


e’AuctionsThe Supplier Logs in on the Site Dashboard


e’AuctionsThe Supplier clicks on all auctions


AuctionsThe Supplier selects auction and bids

Open Auctions: Click on “All Auctions” first and express interest by clicking on add. Open in “My Auctions” and bid

Closed Auctions: Click on “My Auctions”. Open and bid

Dedicated

Auctions

Open

Auctions


Auctions

The Supplier Bids


Auctions

Auto Bids


THE eRS PROCESS

Access PetroSA Portal

Open client site

Request downloaded

Download request in eRS

Complete request online

Export request to Excel

Extract zipped requestComplete request online

Complete request

Complete requestSubmit request

response

Import from Excel

Submit request through eRS

Response available on

PetroSA’s RFX automatically PetroSA imports

response into RFX

No

Yes

No

No

Yes

SUPPLIER


Supplier Help Desk

• Service is free of charge

Practical Benefits

A fully operational Supplier Care Centre, situated at Intenda’s offices in Centurion, that provides support for eRS, GlobaleRFx.com, suppliers registrations and Tender and Contract Management will offer TELEPHONIC support for suppliers registered on this portal. It’s hours of operation are:

• 08h00 to 17h00 Monday to Friday (South African time)

•The Supplier Care Centre is available on Saturday and Sunday from 09h00 to 18h00 (South African time). This support is available via the cell phone number published on the portal under Contact Us.

•Support is also offered via email using [email protected].

Note: This help desk provides process support only. Queries on content will be referred to PetroSA.


Supplier Help Desk – Contact Numbers

•08h00 to 17h00 Monday to Friday (South African time)

+27 (0) 12 663 8815

•09h00 to 18h00 Saturday and Sunday (South African time).

+27 (0) 83 554 8331

Contact Us


Questions