This document discusses purchasing opportunities and enhancements at the Suez Canal Container Terminal. It identifies five core business strategies: 1) pursuing consignment deals for remaining inventory parts, 2) strategically managing critical spare parts, fuel, and electricity supplies, 3) building a historic price database for non-coded services, 4) creating a supplier manual, and 5) forming emergency teams to ensure minimum operations during disruptions. It also discusses training and motivating staff as well as implementing an award system to improve performance. The overall aim is to professionally spend each dollar by pursuing the right source, quantity, price, time and quality to maximize cost savings and enhance cash flow.
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.