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PurchasingChallenges
Suez Canal Container Terminal
Purchasing Opportunities
PurchasingChallenges….Opportunitiesandenhancements
Suez Canal Container Terminal
Purchasing Opportunities
Topics
1. Core business strategies
A. 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
Purchasing Opportunities
Core business strategies
Cost Saving
Suez Canal Container Terminal
A- Consignment Deals / new items
 Target : remaining inventory parts "fabricated”
 In 2012 :
0
200
Spend (k $) Purchase orders
73 6
30 62
non consignment consignment
 By the end of 2013:
0
100
200
Consignment
15
100
Spend (k$) Purchase orders
Suez Canal Container Terminal
Purchasing 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.
Suez Canal Container Terminal
Purchasing Opportunities
Core business strategies
SRM/Supplier
Segmentation
B- Strategic items
1. Critical Spare Parts
A. Recent Egypt's circumstances are reflecting unstable situation.
B. Precise follow of SCM/ Stores & Purchasing existing stock / scheduled deliveries
C. 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 Saving
1. All SCCT Staff PCs. Turning off after two hours with no activities
2. Administration building corridors lights turning off in day hours .
Basic
Strategic
Valued
Preferred
Suez Canal Container Terminal
Purchasing Opportunities
Core business strategies
Cost Control
C. Building historic price for non-coded services
The 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 repair
III. Tracing non coded items / services is difficult due to tangible differences in
I. Description
II. 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)
Suez Canal Container Terminal
Purchasing Opportunities
Core business strategies
Documentation
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 categorization
o Market categorization ( domestic / overseas)
o Supportive purchase orders numbers
o IFS code
Suez Canal Container Terminal
Purchasing Opportunities
Core business strategies
Documentation
Supplies (ENG)
Mechanical
Hydraulic
electrical
Civil
consumables CRC-WD40-locotite/ raw
materials
Bearings / shafts/sleeves
Pistons / accumulators
Machining
Services (repairs)
electrical
Mechanical
Hoses/ Pistons/fittings
Cables / CB
Manufacturers
ZF
BUBANZER
SCANIA
SIEMENS
SIBRE
Services (others)
Accommodation
transportation
Supplies (IT)
Other
FA Software
Hardware
Software
Hardware
Supplies (Others)
ADM.supplies
PPE
OPS.Supplies
Beverages/ stationary…
SS/SG/Helmets/Harness
Lashing equipments
ID Name Examples (PO REF) Contact Person Mail Tel Mob Fax
A-SW-0049 NetwriX NetWrix 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 Agata_Pajor@symantec.com 41 26 429 7729 0800 56 29 24
ITGLO Global Brands Microsoft Licenses (23580) Ahmed Samir
Ahmed Samir
[Ahmed.Samir@gbrands.com]
+202 26186800 EXT
(1216) 0111 65 65 000
+202
26182247
A-CM-0010 Mobiserve Internet Solutions. (24865) Mohamed Rahman
mrahman@mobiserveholding.co
m
20 2 2613 1350 Ext.:
3587 20 122 3933 730
20 2 2613
1355
A-SV-0296
DCS TELECOM
SAE Internet Solutions. (28917) Mohamed Saad Finance mohamed.saad@dcs-eg.com 20 2 2400 6920
01062773770 -
01025009866
A-SV-0296
DCS TELECOM
SAE Internet Solutions. Ghady Raafat Ghady.Raafat@Dcs-eg.com 202 2400 6900 EXT. 602
Suez Canal Container Terminal
Purchasing Opportunities
Core business strategies
People
E. Emergency teams
Current 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
Benefits
Keep the wheel running with allowable -minimum capacity.
More experience .
Opportunity for finding out potentials .
Domestic Supplies
Overseas supplies
Domestic Supplies
Administrative
Suez Canal Container Terminal
Purchasing Opportunities
People
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
Suez Canal Container Terminal
Purchasing Opportunities
Warp 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)
Strategicitems management (W=4)
Emergency Team ( W=2)
Suppliers’ manual (W=2)
Coding repetitiveservices(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
Suez Canal Container Terminal
Purchasing Opportunities

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version 11

  • 1. PurchasingChallenges Suez Canal Container Terminal Purchasing Opportunities
  • 3. Topics 1. Core business strategies A. 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
  • 4. Purchasing Opportunities Core business strategies Cost Saving Suez Canal Container Terminal A- Consignment Deals / new items  Target : remaining inventory parts "fabricated”  In 2012 : 0 200 Spend (k $) Purchase orders 73 6 30 62 non consignment consignment  By the end of 2013: 0 100 200 Consignment 15 100 Spend (k$) Purchase orders
  • 5. Suez Canal Container Terminal Purchasing 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.
  • 6. Suez Canal Container Terminal Purchasing Opportunities Core business strategies SRM/Supplier Segmentation B- Strategic items 1. Critical Spare Parts A. Recent Egypt's circumstances are reflecting unstable situation. B. Precise follow of SCM/ Stores & Purchasing existing stock / scheduled deliveries C. 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 Saving 1. All SCCT Staff PCs. Turning off after two hours with no activities 2. Administration building corridors lights turning off in day hours . Basic Strategic Valued Preferred
  • 7. Suez Canal Container Terminal Purchasing Opportunities Core business strategies Cost Control C. Building historic price for non-coded services The 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 repair III. Tracing non coded items / services is difficult due to tangible differences in I. Description II. 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)
  • 8. Suez Canal Container Terminal Purchasing Opportunities Core business strategies Documentation 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 categorization o Market categorization ( domestic / overseas) o Supportive purchase orders numbers o IFS code
  • 9. Suez Canal Container Terminal Purchasing Opportunities Core business strategies Documentation Supplies (ENG) Mechanical Hydraulic electrical Civil consumables CRC-WD40-locotite/ raw materials Bearings / shafts/sleeves Pistons / accumulators Machining Services (repairs) electrical Mechanical Hoses/ Pistons/fittings Cables / CB Manufacturers ZF BUBANZER SCANIA SIEMENS SIBRE Services (others) Accommodation transportation Supplies (IT) Other FA Software Hardware Software Hardware Supplies (Others) ADM.supplies PPE OPS.Supplies Beverages/ stationary… SS/SG/Helmets/Harness Lashing equipments ID Name Examples (PO REF) Contact Person Mail Tel Mob Fax A-SW-0049 NetwriX NetWrix 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 Agata_Pajor@symantec.com 41 26 429 7729 0800 56 29 24 ITGLO Global Brands Microsoft Licenses (23580) Ahmed Samir Ahmed Samir [Ahmed.Samir@gbrands.com] +202 26186800 EXT (1216) 0111 65 65 000 +202 26182247 A-CM-0010 Mobiserve Internet Solutions. (24865) Mohamed Rahman mrahman@mobiserveholding.co m 20 2 2613 1350 Ext.: 3587 20 122 3933 730 20 2 2613 1355 A-SV-0296 DCS TELECOM SAE Internet Solutions. (28917) Mohamed Saad Finance mohamed.saad@dcs-eg.com 20 2 2400 6920 01062773770 - 01025009866 A-SV-0296 DCS TELECOM SAE Internet Solutions. Ghady Raafat Ghady.Raafat@Dcs-eg.com 202 2400 6900 EXT. 602
  • 10. Suez Canal Container Terminal Purchasing Opportunities Core business strategies People E. Emergency teams Current 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 Benefits Keep the wheel running with allowable -minimum capacity. More experience . Opportunity for finding out potentials . Domestic Supplies Overseas supplies Domestic Supplies Administrative
  • 11. Suez Canal Container Terminal Purchasing Opportunities People 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
  • 12. Suez Canal Container Terminal Purchasing Opportunities Warp 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) Strategicitems management (W=4) Emergency Team ( W=2) Suppliers’ manual (W=2) Coding repetitiveservices(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.
  • 13. THANK YOU Suez Canal Container Terminal Purchasing Opportunities