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2019 ipsm conference_07_tural vazirov


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Tural Vazirov presentation for IPSM First International Conference in Procurement and Supply Chain
June 5-6, Kyiv, Ukraine

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2019 ipsm conference_07_tural vazirov

  1. 1. ▪ Who we are / What we do / How we operate ▪ Market conditions / Market situation ▪ Vendor Relationship System (Pre/Post Qualification, Debrief, Vendor Development Program) ▪ Best in class / World practice implementation (procedures, contract drafts, experience of international organizations) ▪ Pre/Post Contract Administration ▪ Future Procurement Platforms What we will present
  2. 2. Who we are
  3. 3. How we operate Commercial Specialists Contract Specialists Document Control Tendering Specialists CPO, Member of Executive Board Procurement Team Leader General Procurement Specialists Project Procurement Specialists Vendor Management Specialist Personal Assistant CEO, Chairman of Executive Board Tenders and Contracts Lead
  4. 4. Challenges: -People ▪Education (Procurement / Supply Chain Management as a new discipline); ▪People competence in the core teams; Non confidence of teammates (Technical knowledge, negotiation, process management) -Process ▪Companies used to work in non transparent way (looking for connections, offering gift etc.) -Price ▪ Underpricing of projects; -Quality / HSE ▪Non readiness for international standards (QA/QC, HSE policies and understandings) Local Market MarketConditions /MarketSituation
  5. 5. VendorRelationshipSystem We are open for all market players – Removing Stereotypes about Procurement ❑Vendor Evaluation Platform (key questions: Licensing, Connections, Court History,) ▪Main Criteria (90%) Experience; Financial situation (healthiness); Human Resources; Assets (technical) ▪Other Criteria (10%) ISO Certification; ERP System awareness / implementation; Origin of vendors; Reference letters ❑Detailed cross feedback to all tender participants about results of bidding / getting feedback about us and contract process ❑Vendor Development Program (Organizing events) ❑Meetings with Vendors key team to improve their capacity (Procurement) ❑Black list – Do we need it? When? Vendor Management
  6. 6. BestinclassProcurement Worldwide practice implementation -ADB, WB, FIDIC (grey book) -Internal Stakeholder - Customers satisfaction process -5R Implementation (Just in time rather than Just in case) -Risk Mitigation / Avoiding lower prices (Abnormally low bids policy) -Detailed Breakdown / BoQ implementation -Supplier Diversification (having backup suppliers for each project) -Outsourcing / Insourcing checkup for each project -Alternative options evaluation World practices
  7. 7. Pre/PostContractAward ▪Tender strategy development; ▪Evaluation criteria and weights, all contract conditions, list of possible vendors (EOI process); ▪Tendering process, Q/A, Site visit, Pre-bid meetings etc.; ▪Tender evaluation (Technical, commercial), Premise visit, conformity check, reference check; ▪Tender negotiation (transparency in negotiation), internal approvals and decision making ▪Contract administration- Bonds, site and PM assignment, HSE, QA/QC plans submission; ▪Contract performance checking, KPI / Schedule, Cost review ▪Variation orders (Lumpsum or Unit Price changes) ▪Contract close out reports and Lessons learned Tendering /Contract administration
  8. 8. ExCom – Strategic Procurement Decisions ▪ Buy or lease; ▪ Strategy approval Operation AgileProjectManagement/Procurement OpCom Early Procurement Involvement ▪ Procurement review of projects in embryo level; ▪ Procurement Strategy – Main Contract / Work Breakdown Structure; ▪ Tender Strategy; ▪ Timelines, Specifications, etc.
  9. 9. Future Procurement FutureProcurementPlatforms Oracle Aconex (DC platform)
  10. 10. Future Procurement FutureProcurementPlatforms Oracle Aconex (DC platform)
  11. 11. Future Procurement Oracle Aconex (DC platform) FutureProcurementPlatforms
  12. 12. Future Procurement Oracle Aconex (DC platform) FutureProcurementPlatforms
  13. 13. Resultsasoftoday ▪ Vendor management system ▪ Assurance in transparency ▪ Agile procurement ▪ Keeping company image ▪ Readiness to cooperate with each market player
  14. 14. Thanks for attention