Procurement Expediting Training

PROCUREMENT
EXPEDITING TRAINING
MOHD ISHAR ISHAK – Expediting Manager
Kuala Lumpur, March 2014

Table of contents
1. Safety Moment
2. Introduction
3. Expediting Work Flow
4. Expediting Execution Plan
5. Interdiscipline Demarcation
6. Typical Causes of Delays
7. Challenges
8. Questions & Answers

1. Safety Moment
3 Procurement EXPEDITING

1. Safety Moment
The Importance of Wearing (Rear) Seatbelt
 A friend’s sorrow
 A friend’s father (September 2011). Mercedes Benz. Driver had facial injury.
 What can we do?
 Teach our children to put on their seat belts. When they are small, place
them in Child Seats / Booster Seats.

2. Introduction

2. Introduction
[1] - Wikipedia
a. Objective
 to ensure audience‘s awareness of the Expediting Activities based on Technip Expediting
Procedure, the timing of these activities so that they could anticipate the upcoming activities
and know the parties that they need to communicate and coordinate these activities with.
b. Who is an Expeditor?
 An expeditor is someone who facilitates a process. It is a position or role found within project
management, construction, purchasing and production control. An Expeditor may be mostly
related to a Supply Chain related business. An expeditor's role is primarily to look at the
requirement levels in the business and fulfill the demands by either rescheduling in or
rescheduling out the delivery date on the Purchase Order. The expeditor is also responsible
for making sure there is no line stopping situation for a business. The key metrics which an
expeditor influences may be - Ontime Delivery, Cash Flow Cycle and Inventory Management.
An expeditor needs to be assertive and needs to know the business at high contextual
levels[1].
 a Project Procurement Team Member who is responsible to monitor and ensure timely
execution of a Purchase Order from issuance of the Purchase Order up to complete Delivery
of the Purchase Order to Site.
 a Coordinator who manages and collaborates with different disciplines (Purchasing,
Inspection, Logistics, Engineering, Site (Materials Management, Construction &
Commissioning)) on the execution of the Purchase Order.

3. Expediting Work Flow

EXPEDITING WORK FLOW
Establish 1st Contact
(Upon Received of PO)
Coordinate and Chair
KOM
(if required)
Prepare and Update
Consolidated Expediting
Report
Liaise with Inspection
for Inspection Activities
Obtain Inspection
Release Certificate
from Inspection
Issue Release Note and
obtain Shipping
Documents from Supplier
Forward verified Shipping
Documents to Logistics
Coordinator for
Transportation and
Shipping Arrangement
Review / Approve
Supplier’s Invoice
once received from
Accounts Dept
Assist in Preparation of
Suppliers Feedback
Report and PO Close Out
Desk/ Field Expediting
and coordinate 3rd Party
Expediting (if required)
Ensure timely
submission of the 1st
Issue of Engineering
and Quality
Documents (Priority)
Follow Up with
Supplier on Overage/
Shortage/ Damage
Report until closure.
Prepare Penalty Report
for Late Deliveries
Note: This work flow was based on the Expediting Scope Of
Work/Procedure of a company that I had the pleasure of working at for
almost 10 years. Some companies might have additional scope e.g.
attending Pre-Award Meeting, Supplier Representative Mobilisation
Coordination etc.

ITEM ⦁ KEY ACTIVITIES TIMING KEY DOCUMENTS / INFO
PARTIES
INVOLVED
PHASE I (KICK-OFF)
1 SET-UP CENTRAL FILING:
Central Filing with Proper Filing Index needs to be established for
proper filing during execution of the Purchase Order. Nowadays, we
concentrate on eFiling, whereby we keep all essential documents and
correspondences in a common Project Folder. As for email
correspondences, we have a common eMailbox for Expediting,
whereby we keep all eMail correspondences for record and traceability
purposes.
-1wk APO Filing Index & E-filing Index SC/ Ex
2 1ST CONTACT
Informing vendor the Expeditor in charge of the PO, providing Vendor
with the necessary Templates.
Vendor to confirm the return of PO Acknowledgement & provide their
Job/Reference Number.
+2days APO 1st Contact Fax / Email,
Templates: Monthly Progress
Report, Shipping Invoice,
Packing List, Packing Note,
Inspection Notification etc.
Ex/ V
3 1ST MARIAN INPUT
Expeditor to update as a minimum, PO Criticality Level, Contact
Details, Routing Method, Progress Milestones & Delivery Dates. Once
Project schedule is available, The Forecast Start and Finish dates for
each Progress Milestones need to be populated.
+1wk APO Purchase Order + PO Index,
Marian
Ex
APO = AFTER PO ISSUANCE Ex = EXPEDITOR PPM = PROJECT PROCUREMENT MANAGER
SOM = START OF MANUFACTURING I = INSPECTOR L = LOGISTICS
CR = CARGO READY FOR COLLECTION DCC = DOCUMENT CONTROLLER FF = FREIGHT FORWARDER
AAS = ARRIVAL AT SITE B = BUYER AO = TECHNIP AFFILIATE OFFICE
V = VENDOR / SUPPLIER PE = PACKAGE ENGINEER SC = SECRETARY
NOTES: ABBREVIATIONS

4. Expediting Execution Plan (continued)
PARTIES
INVOLVED
4 KICK-OFF MEETING:
KOM is essential to re-clarify & reconfirm all the issues discussed &
agreed during Pre-Award/ Bid Clarification Meeting.
Order Execution should be the main Agenda which shall comprise of
Review of Inspection and Test Plan, GA Drawings, P&ID,
Manufacturing Monitoring & Reporting, Inspection, Logistics
arrangement and submission of Vendor Document (based on SR Part
II).
Update Marian/ Expediting Report should there be new information
resulting from the KOM (Routing Method/Contacts/Delivery
Dates/Milestones etc)
+2wk / +1mth
APO
(Depending on the
type of PO –>
Bulk/Package)
KOM Notification Fax + Agenda
+ Communication Channel
Ex/ PE/ DCC/
L/ I/ B/ V
5 BANK GUARANTEE (AS PERFORMANCE BOND)
Bank Guarantee is required as a Performance & Warranty Bond to
cover 10% (please check each PO for confirmation on amount and
validity) of the order value, with validity period ending 12 months after
provisional acceptance of the plant by OWNER (might be different
depending on project requirement). Without Bank Guarantee
submitted, we are not obliged to process/make payment to Vendor’
Invoice.
With 1st Milestone
Invoice
Bank Guarantee Format B/ V

PARTIES
INVOLVED
PHASE II (ENGINEERING, PROCUREMENT & MANUFACTURING)
1 VENDOR DATA REVIEW CYCLE/ENGINEERING:
A0001 List of Vendor Documents & Drawings should be based on SR
Part II and discussed during KOM on agreed submission dates. Priority
Documents are indicated in SR Part II. Expeditor is only responsible to
expedite the 1st submission of Priority Documents and those documents
indicated in Milestone Payment. However, for the sake of maintaining
the PO Delivery Date, Expeditor is encourage to regularly help expedite
the submission/ resubmission of documents/ drawings until they reach
Code 2.
[Why is engineering progress important?]
+1mth APO SR Part II, Vendor Data Master
List, Manufacturing Schedule,
Inspection & Test Plan, General
Arrangement Drawing, P&ID,
Performance Curves, Block
Diagram, I/O List, etc.
(In-depth Knowledge of our
EDMS/VDB System is a
prerequisite for successful
monitoring of Vendor Data
Status)
V/ DCC/ PE/
Ex
2 SUB-ORDERS STATUS
Expeditor to obtain from Vendor on regular basis (monthly) the status of
Vendor’ Sub-Orders for Main Equipment/Materials. This would show if
vendor is getting their components/materials on time as indicated in their
Project Schedule.
This would also indicate when vendor would receive engineering
deliverables from their sub-vendors.
[Why is Sub-Order Status important?]
+1-2mth APO Sub-Order Procurement Status,
Un-Priced Sub-Orders
V/ Ex
3 INSPECTION & EXPEDITING SERVICES ENGAGEMENT FROM
OTHER TECHNIP OFFICES:
Inspection & Expediting Services if required, (Criticality Level 1&2), will
be sourced via nearest Technip Office.
+1mth APO Quality Documents (Type B
Documents), Inspection & Test
Plan & Production Schedule,
Expediting Assignment Letter &
CDI
V/ Ex/ AO

PARTIES
INVOLVED
4 PRE-INSPECTION MEETING/ PRE-PRODUCTION MEETING:
PIM/PPM is held to:
a) confirm the inspection activities to be performed by Inspector and
also Vendor’s agreement to comply with the Approved/ Appraised
Procedures/Documents.
b) Ensure that all Quality Documents are Approved/ Appraised at
least to Code 2. (At least the ITP)
c) Go through Manufacturing programme/ schedule for the order.
-1wk SOM All Quality & Priority Documents
(GAD, P&ID etc) to be at least
Code 2 & Production Schedule
V/ AO/ I/ Ex /
PE
5 MONTHLY PROGRESS REPORT SUBMISSION:
Vendor is required to submit Monthly Progress Report for our
monitoring purpose. Should there be any slippage, Vendor is required
to provide explanation, and reasoning and mitigation plan for the delay.
As much as possible, we need to push Vendor, to maintain the
originally agreed/promised Delivery Date. Please refer Expediting
Criticality Level on Expediting Frequency.
[How to review Monthly Progress Report?]
+4wks APO
(please refer SR
Part II)
Progress Report Format.
Monthly Progress Report, as a
minimum, should have the
following:
 Engineering Status via
updated A0001: Vendor
Document & Drawing List
 Procurement Status via
Sub-Order Procurement
Status
 Inspection & Testing Look
A Head
 Overall & Manufacturing
Progress via the Project
Schedule
 Photos of Manufacturing
Progress (For Packages &
Vessels)
V/ Ex/ PE
6 ALERT NOTICE
An Alert Notice to be issued to Project and other relevant parties in the
Project when there is Potential Impact to Cost, Technical and Delivery.
+1day Slippage
Made Known.
Alert Notice Template; attach
the email correspondence with
vendor.
Ex/ Project/
PE/ B/ PPM/ I

PARTIES
INVOLVED
7 PROGRESS/ STATUS REPORTING
Expeditor is expected to maintain their personal daily Status updates
and update Marian as necessary.
Expediting Coordinator is expected to review Marian updates with the
Expeditors on a regular basis.
Field Expediting visit if necessary will be conducted. Expeditor to
prepare (reviewed by Expediting Coordinator) an Expediting Visit Report
and distribute within 48 hours after performing the visit.
This visit plans need to be indicated in the Expediting 3 Week Look
Ahead.
Biweekly Email/Fax correspondences,
Teleconference, Marian, Field
Expediting Report, Inspection
Report
Ex / Marian
Team
8 FACTORY ACCEPTANCE TEST / FINAL INSPECTION
FAT and or Final Inspection will be performed prior to the Release of an
Order.
-2wks CR FAT Procedure, Inspection
Notification
V/ AO/ I/ PE/
Ex
9 INSPECTION RELEASE CERTIFICATE
IRC will be issued by Inspector after completion of FAT/Final Inspection
and close out of OWL (Outstanding Work List). Expeditor to expedite the
OWL closure.
-1wk CR Inspection Release Certificate &
signed Outstanding Work List
AO/ I/ V/Ex
10 RELEASE FOR PACKING AND DELIVERY
Upon received of IRC & signed OWL, Expeditor will issue a Release For
Packing & Delivery. Only Release For Packing if the consignment is
meant to be stored for a few months prior to collection.
Our release need to be copied to Marian Team for input into Marian
System. Expeditor’s involvement in Marian update stops here.
-1wk CR Release For Packing & Delivery,
Packing List & Packing Notes.
Material Certificate Summary &
Materials Test Certificates (Mill
Certificates)
Ex/ V/ Marian
Team

PARTIES
INVOLVED
PHASE III (SHIPPING)
1 VESSEL BOOKING
It is always an advantage to Pre-Alert Logistics for shipments of
Oversized/ Bulk Cargo requiring Conventional Vessels.
For Packages, Estimation of Weight & Dimension if not provided by
Vendor could be found from the General Arrangement Drawing. Need to
check if Cargo/Marine Surveyor is required.
Sometimes, Pre-Shipping Meeting would also be held, depending on
the criticality of the Equipment.
-1mth CR Preliminary Packing Lists, Port
of Export, Vendor’s Contact
Details, Packing & Preservation
Procedure, Lifting/Transport
Drawing.
V/ Ex/ L
2 SHIPPING DOCUMENTS
Expeditor to obtain and review Shipping Documents submitted prior to
forwarding them to Logistics.
Expeditor to ensure the correctness of description and quantity of the
equipment/ materials being shipped.
-1wk CR Proforma/Shipping Invoice,
Packing List/Packing Notes,
Certificate of Origin,
Phytosanitary/Fumigation
Certificate (ISPM15)
Ex/ V/ L
3 TAX EXEMPTION & IMPORT PERMIT APPLICATION:
Logistics are responsible for this.
-1mth CR Proforma/Shipping Invoice,
Packing List/Packing Notes,
Master Exemption List, Import
Permit Application Form.
L
4 CUSTOM CLEARANCE:
Custom Clearance is the responsibility of our appointed Forwarder, and
under the purview of Logistics.
Arrival at Port Proforma/Shipping Invoice,
Packing List/Packing Notes, Bill
of Lading/Airway Bill, Certificate
of Origin, Tax Exemption
Approval, Approved Import
Permit
FF/ L

PARTIES
INVOLVED
PHASE IV ( SITE RECEIVING)
1 OFF-LOADING/DISCHARGE:
This is the demarcation between our Freight Forwarder and Site
Material Management Team.
AAS Delivery Order, Packing List &
Packing Notes, Transport
Drawing etc.
FF/Site
2 GOODS INWARDS/RECEIVING INSPECTION:
Upon arrival of Goods (Equipment/Materials), Site would perform
Quantitative (number of packages & quantity of materials received) &
Qualitative (NDE Testing, check condition & quality of materials
received, if necessary) Receiving Inspection.
OVERAGE, SHORTAGE & DAMAGED REPORT / NCR
Should an OSD or NCR is discovered at Site, Expeditor to follow up
with vendor until closure of the OSD & NCR.
+1wk AAS
+2wks AAS
Packing List & Packing Notes,
General Arrangement Drawing.
OSD Report prepared and
maintained by Site Material
Management Team.
Site
Site/ Ex/ V
3 FINAL VDB/MDRB SUBMISSION:
Vendor is required to submit the number of copies as indicated in PP-
218 of Coded 3 and Properly Compiled/Filed Installation & Operations
Manual, Test Certificates, Qualified/Appraised Documents/Drawings.
Sometimes, Engineer would ask vendor to include Packing List/Notes
and Certificate Of Origin in the Final VDB.
+1mth CR Final Vendor Data Book & Final
Manufacturing Data Record
Book, PP-218
DCC/Ex/PE/V

PARTIES
INVOLVED
PHASE V (INVOICING)
1 INVOICE REVIEW & APPROVAL
Vendor’s Invoice submission will be recorded by Account in PO Follow
Up Sheet (AFP Attachment) and NIP List (Varies slightly depending on
Project requirement. In the near future, this will be managed using
GEOS). Expeditor to immediately verify that all supporting documents
are available and in order.
Should there be insufficient supporting document, Expeditor to request
from Vendor and inform Vendor that the invoice is placed On Hold until
the missing documents are supplied.
+1day Received
of AFP
Invoice, Supporting Documents
(as required by each milestone),
AFP & PO Follow Up Sheet
Ex/ PPM/ SC/
V
PHASE VI (WARRANTY)
1 Determine Warranty Duration (Based on Delivery). +1wk CR FCA – Inspection Release
Certificate/ Release Note
L/ I/ Ex
2 Determine Warranty Duration (Based On Commissioning or Initial
Acceptance by Client).
+1wk AC Successful Commissioning
Notification to Vendor / Initial
Acceptance Certificate from
Client
Site/Ex
3 Get Vendor to revise Bank Guarantee. -4wk Expiry of
BG
Revised BG to cover the whole
duration of the Warranty
B/ Ex/ V

PARTIES
INVOLVED
3 CLOSE OUT MEETING
This need to be arranged if we wanted to impose Penalty/ Backcharges/
Penalty+Backcharges to vendor.
An amicable resolution is expected at the end of or subsequent to the
meeting.
+2wk Final
VDB/MDRB
Feedback Report/ Penalty
Report/ Backcharges List/ VDB
History Print Out etc
Ex/ PPM/ Cost
Control/ Site
4 APPROVAL OF FINAL INVOICE
This will be done upon completion of activities 1, 2, 3 above.
+2wks Close Out
Meeting/ Final
VDB/MDRB
Submission
Final Invoice, Final Invoice
Check List, Final VDB/MDRB
Transmittals, Feedback Report,
Penalty Report, Performance
Bond Validity & Reconciled PO
Amount, confirmed OSD closure
& submission of COO.
(to list down the check list).
Ex/ PPM/ SC
PHASE VII (CLOSE OUT)
1 FEEDBACK REPORT
This is to rate Vendor’ Performance throughout the execution of the PO.
+1wk Final
VDB/MDRB
Submission
Feedback Report Template
[To include feedback write up]
Ex/ PE/ B/ I/
PPM
2 PENALTY REPORT
This is to ascertain/calculate the amount of applicable Penalty. Provide
recommendation and justification.
+1wk Final
VDB/MDRB
Submission
Penalty Report Template Ex/ PE/ I/
PPM/ Project

Doc Reference Rev. Rev.Date Document Title
0 Insurance Claims Procedure
RECOMMENDED AND ESSENTAIL DOCUMENTS:
(Note: Doc Reference Number could be different from Project to Project and Company to Company)
0 Project Execution Plan
0 FILING AND ARCHIVING PROCEDURE
1 Smartplant Implementation Plan
0 Equipment-Material Critical Rating
0 Project Equipment Lists
0 Documents Class
1 Instructions Concerning the Vendors' Documents Required by the Requisition
0 Electronic Format Rule for Vendor Documents
2 Final Vendor Data and Manufacturers Data Record Books
1 Vendor Documents Numbering Procedure
1 Engineering Plan
1 Vendor Document Management Procedure for Bulk Material Requisitions
0 Document Management Procedure
2 Electronic Communication Procedure for Vendor Documents - JVD Bulk Material Requisitions
0 Management of changes in C&I - Control & Instrumentation Modification Record (C&IMR)

2 Project Quality Plan
2 Overall Procurement Plan
2 Packing, Marking and Shipping Instructions
2 Site Services Conditions for Supplier's Specialists
2 Purchasing Procedure - General Terms and Conditions for Purchase
3 Project Expediting Procedure
2 Vendor Quality Control - Inspection Procedure
0 TRAFFIC AND LOGISTIC PLAN CUSTOMS CLEARANCE PROCEDURE
Doc Reference Rev. Rev.Date Document Title
0 Non Conformance Procedure at Vendor's
0 PARTICULAR TERMS AND CONDITIONS FOR PURCHASE OF DQR PROJECT
SUPPLIES (PTC)
2 Project Master Vendors List
2 Two-Year Spare Parts Procurement Procedure
1 Instructions to Vendors for 2Y SP Record Preparation
4 Standardization and Bulk Procurement Procedure
0 Particular Terms and Conditions (TPC) for Purchase of Project Supplies (Onshore)
0 Site Material Management Procedure – OSD

a. Between Expeditor-Buyer
 Buyer to follow up the received of clean PO Acknowledgement from Supplier.
 Buyer to follow up and review the Bank Guarantee/Performance Bond from Supplier.
 Buyer is the focal point for all Post Award Commercial matters requiring PO Amendments.
b. Between Expeditor-Requisition Engineer
 Requisition Engineer shall manage the Technical portion of the KOM.
 Requisition Engineer shall be responsible for all Technical matters, including changes to Scope
of Supply, Technical Deviations, Concessions and Engineering related Non-Conformance
issued by Inspection.
 Requisition Engineer shall expedite resolution of Technical issues, return of Non-Priority A-
Documents.

(continued)c. Between Expeditor-Document Controller
 Document Controller to send an email rejecting documents from Supplier.
 Document Controller to assist Requisition Engineer in expediting the return/re-issuance of
Non-Priority A-Documents.
 Expeditor shall expedite the issuance of Final VDB & MDRB once the Draft VDB & MDRB had
been accepted/approved by Requisition Engineer.
d. Between Expeditor-Inspection
 Expeditor shall ensure timely issuance of Inspection Notice.
 Inspection shall expedite and ensure timely issuance of Inspection Visit Report (48hours) and
Inspection Release Certificate (24hours).
 Expeditor shall ensure timely closure of OWL.
 Inspection shall follow up with Requisition Engineer for timely closure of Non-Conformance.
e. Between Expeditor-Logistics
 Expeditor shall ensure timely issuance of Shipping Documents.
 Expeditor shall review the correctness of the content of Shipping Documents, Logistics to
ensure the format is correct and advise should additional information is required.

#
SUPPLIER CONTRACTOR
CAUSES MITIGATION CAUSES MITIGATION
A. ENGINEERING
1 Delay in getting Vendor Document
issued / revised and issued.
- For big packages - Weekly
teleconference.
- Full time Inspector cum expeditor
at supplier's premise.
Delay in finalising the review of
Vendor Documents - due to
workload.
Keep Vendor Document Review to
3 Cycles with Face to Face / VC /
Teleconference review in
between, as necessary.
2 Pending input from Sub-
Vendor/Supplier (eg, Electrical and
Instrument products for
Mechanical Packages)
Delay in getting inputs from
Suppliers (eg Top Drawings for
interlocking Valves, Serial
Mapping, I/O Lists etc)
For long lead and big packages,
supplier to stationed a
project/design engineer in TP
Office, for engineering
coordination work.
3 Deviating from agreed technical
requirements (during Bidding) - eg.
piping items material type.
Supplier to fully comply to what
they have agreed. Else, Deviation
Request with cost deduction need
to be submitted for consideration.
Changes to PDS - Process Data
Sheet
Supplier to be notified earliest
possible.
4 Increase in MTO Quantity for bulk Supplier to be notified earliest
possible.
5 New specification(s) to be adopted
post PO.
Supplier to be notified earliest
possible.

#
SUPPLIER CONTRACTOR
B. PROCUREMENT
1 Procurement process takes too
long - too many red tape.
Supplier to improve their
Procurement process.
Delay in reviewing/approving GAD
or other documents that would
hold up supplier's procurement.
Vendor to inform/identofy and
Engineer to prioritise the review of
these documents.
2 Slow Sub-Supplier progress Close monitoring - physical visits Delay in issuing PO Amendment Supplier to agree on unsigned PO
Amendment copy / email
confirmation by Contractor's
Procurement Manager?
3 Lack of Main Sub-Suppliers'
progress monitoring
To send Third Party or make
physical visit.
4 Lack of control/influence over
Main Sub-Supplier.
To send Third Party or make
physical visit.

(Continued)
#
SUPPLIER CONTRACTOR
C. MANUFACTURING
1 Casting defective, recasting
required
3rd Party to be employed fulltime
to witness all casting activities.
2 Piping / Structural materials not
meeting project specifications
Specification to be reviewed by
Contractor prior to SPO issuance.
3 Main Sub-Orders delivery delay - supplier to use fastest mode of
delivery
- component to be installed at site
at supplier' cost
D. INSPECTION AND TESTING
1 Not ready for FAT due to internal
test failures.
To immediately notify
Contractor/Client & arrange
immediately after rectification.
Inspector not available for
Witness/Hold Points
2 Re-Test To immediately notify
Contractor/Client & arrange
immediately after rectification.
Engineer nominated to witness
FAT, has Visa issues / travelling
difficulties.
Decision to be made early and
engineer identified, so that
travelling necessities could be pre-
arranged.
3 Delay in issuance of Quality
Documents (B-Type documents),
resulting in delay of PIM
Expeditor to follow up closely. Delay in reviewing and returning
Quality Documents (B-Type
documents)
Inspector to prioritise the review
of critical Type B documents
(ITP/QCP).

(Continued)
#
SUPPLIER CONTRACTOR
E. PACKING
1 Delay in nominating Packer, if
packing is to be outsourced.
Potentially further delay in pick-up
date, which will have direct impact
on departure date or need to
postpone the shipment.
Upon release for packing issued,
packing shall be completed in
certain period (depending on nos
of packages and type of
equipment / material)
2 Insufficient packing / packing not
meeting specification.
Marine Insurance is not covered
due to poor packing
method/material.
Only appoint international or local
certified packer or packing
company

(Continued)
#
SUPPLIER CONTRACTOR
F. SHIPPING
1 Delay in issuance of Transportation
Drawing
Impact on carrier / liner planning
especially for stowage / lashing /
securing plan and potentially will
be roll-over to the next following
shipment
Set-up min / max period for
issuance / review / comment /
approval for shipping documents /
transport drawing for each party
Taking too long to review Shipping
Documents / Transportation
drawing.
2 Delay in issuance of Shipping
Documents (Proforma Invoice,
Packing List & Packing Notes for
review)
date, which direct impact on
departure date or need to
Set-up min / max period for
issuance / review / approval of
shipping documents
Vessel availability or the lack of it.
3 Special Export Formalities
date, which direct impact on
departure date or need to
Request supplier to advice their
products HS customs tariff code
upon PO award therefore details
checking by forwarder will be done
much earlier whether such
consignment subject to export
permit requirements or not
Forwarder taking too long to
secure an available vessel

(Continued)
#
SUPPLIER CONTRACTOR
F. SHIPPING
4 Permit for Local transport
No local transportation movement
will be executed until the approval
is granted from the local transport
authority, therefore potentially a
delay in local transport to
destination.
Definition of heavy and or oversize
cargo need to be define at the
beginning of the project, therefore
any consignment beyond
mentioned criteria to be applied
for transport permit as earlier as
possible.
Custom Import Clearance.
5 Actual/physical of the goods is not
the same as documented in
shipping documents (such as
weight, dimensions, etc)
Potentially the shipment will be
rejected by carrier / liner (which
will impact the delay in shipment)
or commercial cost of freight will
increase (if weight and or
dimension is increase) or decrease
(if weight and or dimension is
decrease)
Supplier / vendor (including
packer, if outsource) need to
physically measure and weight
each package prior issuance /
distribute their shipping
documents or packing inspection
to be conducted either by
forwarder / logistic

7. Challenges

7. Challenges
NO. CHALLENGES TYPE MITIGATION PLAN
1 Lack of Cooperation from Project Team Internal Identify Project Requirement
Indentify Focal Point and his/her superior
Responsibility must be clear (a Responsibility Matrix to be
created)
2 Miscommunication Personal To confirm verbal discussion in writing (email/fax etc)
3 Stubborn & Non-Performing Vendors External Send warning email/fax/letter
Face to Face Meeting
Make Field Expediting Visit
Get affiliate Office to send expeditor/inspector
Get Global Procurement assistance.
4 Incorrect/Incomplete Information from Vendor External Face to face meeting / VC
5 Project Procedure/Specification Not Clear Internal Face to face meeting / VC
6 Time Difference Personal Set an appropriate time for teleconference via email.
7 Poor Cooperation from Vendor External Face to Face Meeting
Make Field Expediting Visit
Get affiliate Office to send expeditor/inspector
Get Global Procurement assistance.
8 Too much time taken for document review Internal/
External
To give reminders to engineer/vendor
9 Urgent request for materials before Contractual
Delivery Date
Internal To accommodate as much as possible and ensure that
materials are not delayed.

7. Challenges (continued)
NO. CHALLENGES TYPE MITIGATION PLAN
10 Lack Of Engineering Knowledge Personal To ask engineer for help.
11 Disagreement In Making Decision Internal To seek a third party’ opinion (superior)
12 Overloaded Personal Load to be properly distributed by coordinator
13 Time Management Problem Personal - could be related to 12
14 Late formalization of PO upon engineering
changes
Internal Engineering changes to be passed on to expeditor once made.
15 Delay in vessel booking Internal/
External
To alert Logistics of potential shipment.
Send pre-alert if necessary.
Keep Logistics/Freight Forwarder in copy when communicating
on Progress
16 Non-Availability of Inspector to perform
inspection
Internal Engage 3rd Party Inspector to perform urgent inspection.
17

8. Questions and Answers

My Contact: mohdishar@gmail.com
Thank you

Procurement Expediting Training

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