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Purchasing Challenges

Suez Canal Container Terminal

Purchasing Opportunities

Purchasing Challenges ….Opportunities and enhancements



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 .



Purchasing OpportunitiesCore business

strategiesCost Saving


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

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.



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



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)



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



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

mailto:[email protected]



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


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


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.

THANK YOU



Documents

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