(1) The procurement process begins with a material requirement raised by a project manager, project engineer, or site engineer. A business administrator verifies the material code and costs and prepares a purchase requisition. (2) If the material code does not exist, procurement creates a new material in SAP. A procurement controller then creates a purchase order in SAP, digitally signs it, and sends it to the supplier. (3) The supplier is expected to provide an order confirmation within 3 days. Logistic staff then take over to receive deliveries and notify quality management for critical deliveries.

1. (2) Business Administrator BA
(Email notification from Sharepoint)
(1) Material Requirement MR
Raised by Project Manager/ Project
Engineer / Site Engineer
Verifies :
- Material Code
- Material costs
After verification PR Purchase Requisition is
prepared by BA
(3) If Material Code doesn’t
exist: Material Creation
Approval
PM & CPM
(4) Purchase Order PO
is created by Procurement Controller
Initiating digital signature on the SharePoint
(6) OC
Order Confirmation
received in 3 days
OC not received:
Reminder sent/Call supplier
by Procurement
(7) Logistic takes over
Weekly Report:
Pending PO status on
Sharepoint
BA informs
Procurement
Procurement gets all
the relevant data
from the supplier
Procurement creates
Material in SAP &
informs BA with the
material number
Delivery done– QA/QC to be notified
in case of critical
deliveries/installation
Third Party Material Procurement
Overview
(5) PO sent to the supplier
by Procurement Controller (involve quality
department for critical deliveries/works)
Logistic takes over
Delivery done– QA/QC to be
notified in case of critical
deliveries/installation
Verifies :
- Material
status
PTO
PTSStatus alert
triggers to
Engineer
and PM
PM to
sign the PO
digitally
CPM to
sign the PO
digitally
Notification from SharePoint
Notification from SharePoint
Notification from SharePoint
Notification from SharePoint
PuM to
verify the
PO digitally

2. January 29, 2015 Third Party Material Procurement Overview NH
(1) Subject
Operator
Material Requirement
Project Manager, Project Engineer, Site
Manager
The procurement process commences with the need of material, initiator is the project manager, project engineer or site manager.
The basis of this is the project procurement plan which has the Bill of Quantities (BOQ) prepared by the project manager during the
PM stage “Acquisition phase”.
A Material Requisition (MR) is raised using a standard material requisition template.
The initiator is responsible for the content of the MR. All MRs
shall contain the following information:
- Description of the requested item, part no.
- Quantity
- Estimated price from price list / biding offer
- Cost Centre of the requesting BU / Corporate
Department (in case of framework order)
- WBS number / Project name
- BID Tabulation (Price Comparison Sheet) or Single
Source Justification (MR Value > 15’000 AED)
- Quotation attached
- JTS costs
MR is not valid without
proper JTS costs designation
Upload MR to SharePoint
Update SharePoint with the following informations:
- Division
- Category
- JTS costs
- Engineer
- Business Administrator
- Project Manager
- Commercial Manager
- Delivery instructions
(for direct deliveries to customer)
Standard Material Requisition Template [1.1]
See BID Tab [1.2] and SSJ [1.3] in attachments
Screenshot SharePoint: Update initiator
 BA Pool
Material Requirement MR
Raised by Project Manager/ Project Engineer /
Site Engineer

3. January 29, 2015 Third Party Material Procurement Overview NH
(2)
Subject
Operator
Purchase Requisition
Business Administrator
The Business Administrator has to check the content in the MR.
BA checks if the material number is existing.
In case the material is missing, BA will inform Procurement for Material Creation (3).
The MR gets converted into a SAP Purchase Requisition (PR).
Update the SharePoint with the PR number.
Put remarks if necessary.
Screenshot SharePoint: Business Administrator
 PM Pool for approval  CM Pool for approval  Procurement Pool
(3)
Subject
Operator
Material Creation
Procurement Controller
(Manual)
BA provides sheet “Create New Material in MM in Sales Org
2513”
BA provides sheet “Request for product specific data”, which
they receive from the supplier
Attachment 3.1: Create New Material in MM in Sales Org 2513
See Request for product specific data [3.2] in attachments
No Material Name Material Type Plant
Distr.
Channel
Unit of
Measure
Material
Group
Business
Unit
Product Hierarchy Profit Center
Purchasing
Group
Valuation Class
Price
AED
Sales Text
ECCN
CODES
DE US HS Code
1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
18
19
20
Prepared By : Tel:Date: Signature
to be send to Ms Rathi Manjunath
Create New Material in MM in Sales Org 2513
Business Administrator BA
(Email notification from Sharepoint)
After verification PR Purchase Requisition is
prepared by BA
If Material doesn’t exist:
Material Creation

4. January 29, 2015 Third Party Material Procurement Overview NH
Create a new Material: SAP - /nmm01
- Industry sector: Siemens International
- Material Type: Trading Goods
- Organizational levels: 9913, 2513, O1
Find required informations in sheet “Create New Material
in MM in Sales Org 2513”:
- Basic data 1
· Material
· Base Unit of Measure
· Material Group
- Sales: Sales Org 1
· Tax classification [default: 0]
- Sales: Sales Org 2
· Matl statisticsgrp [default: 1]
· Product hierarchy
- General Sales
· Trans. Grp [default: 0001]
· LoadingGrp [default: 0000]
· Profit Center
- Purchasing
· Purchaising Group
- Accounting 1
· Valuation class
· Moving price [default: 1]
- MRP 1
· MRP Type [default: ND]
- Foreign trade: Import data
· ECCN Code
 Material number
Screenshot SAP /nmm01: Initial Screen
Screenshot SAP /nmm01: Organizational levels
Screenshot SAP /nmm01: Input
Screenshot SAP example: /nmm01
 Send to Business Administrator

5. January 29, 2015 Third Party Material Procurement Overview NH
(4)
Subject:
Operator
Purchase Order
Procurement Controller
(Manual)
Creating a new Purchase Order:
SAP
1. /nme21n
2. /nme9f
3. /nme23n
MR
1. MR excel template
2. Bid Tab or SSJ
3. Quotation
SharePoint
1. Email notification that PR is awaiting for action
2. Open MR
3. Check JTS costs on SharePoint
4. Compare Quotation with MR
(Is MR value > 5’000 AED than check BID or SSJ)
5. SAP /nm21n
(a) Copy PR number which is mentioned
in the SharePoint, past in ‘Purchase
Requisition Number’ and execute.
(b) change to layout “shajeem” to see which
are the required materials
(c) Open MR and compare, pull the items
in the shopping card
6. Enter vendor name right on top
7. Enter store location (item overview) / Check in
register Org. Data (header) for Purchasing Group:
Purchasing Group / Store Location
U47 = 0024 – IBT-BAU
U48 = 0025 – CPS
U50 = 0026 – LCM_SER
Screenshot SharePoint: 2. PO request example
Screenshot SAP /nm21n: 5. Pull line items
Purchase Order PO
is created by Procurement Controller
a b
c
Screenshot SAP: Structure
- Header
- Item Overview
- Item Detail
Screenshot SAP: Register
example

6. January 29, 2015 Third Party Material Procurement Overview NH
8. Check for price, currency and quantity in MR and
quotation (item overview)
9. Put delivery date as per usual for the vendor (item
overview)
10. Put the right item text (item overview) :
Item text
Standard Purchase Order: Supply of _ _ _
Framework Order: Hire of _ _ _
11. Material PO text (item detail, register: texts)
Add additional item text
12. Header register: Delivery / Invoices
Fill in Payment Terms & Incoterms
13. Header, register Texts:
Add Standard header text
Add Shipping instructions for oversea supplier
Add Remarks
In case of framework order, add a reference to the
service agreement with this supplier. WBS number
and project name are mentioned in the MR.
Screenshot SAP: Item overview example
Standard additional text for Framework Orders:
[Period]
which is re-measurable.
Scope of Works:
1. [description of work]
2. [description of work]
…
----------------------------------------------
- Purchase Order (P.O.) number shall be
referred
on all Invoices.
- All hand tools shall be
provided by [company Name].
- Invoices shall be submitted along with signed
time sheets of responsible Siemens
Projectmanager along with WBS element.
----------------------------------------------
The above PARTICUALR CONDIONS shall apply in
addition to Siemens LLC General Terms and
Conditions of Purchase & agreed Conditions
within Manpower Provider Agreement with
Ref.No [reference number] including
annexure 1-5 duly signed on [date]
between [company name]
and Siemens LLC BT.
Standard Header Text for Purchase Orders:
Material which is delivered directly to RSA
Logistics requires to be delivered with 2copies
of the invoice which is mandatory. Kindly
inform a day in advance to Ms. Alta with the
Vehicle & Name of the Person no to arrange for
the gate pass before delivery of material.
Standard Shipping Instructions for Purchase Orders:
Mode of Dispatch: by UPS A/C# W8786E
if <40kgs, by Agility if >40Kgs
Standard Remarks for Purchase Orders:
[WBS number] – [Project name] **Please find
attached our General Terms and Conditions of
Purchase which forms an integral part of this
Purchase Order.

7. January 29, 2015 Third Party Material Procurement Overview NH
14. Header, Register: Communication
Sales Person: Person who submitted the quotation
Your reference: Quotation number
Our reference: ID number from SharePoint
15. Register: Partners
ZU: Signature Technical
ZV: Signature Commercial
(a) Search for names
16. Recheck everything, especially net price and quantity
17. Save PO in SAP, go to /nme9f and save as .pdf
Check printer options
(PDF-XChange Printer 2012)
18. Update SharePoint by the help of /nme23n:
- Project
- Vendor
- Proc Actions
- PO number
- PO created date
- PO currency
- PO value
- Delivery Date
19. Upload PO .pdf-File to SharePoint
Screenshot SAP: Communication example
Screenshot SAP: Partners example
Signature regulations
Screenshot SAP: PO created
See PO example [4.1] in attachments
Screenshot SAP /nme9f
Screenshot SharePoint: Update SharePoint
a
≤ 25’000 AED
Technical Level 4
Commercial Level 4
≤ 150’000 AED
Technical Level 3
Commercial Level 3
≤ 500’000 AED
Technical Level 2
Commercial Level 2
> 500’000 AED& CC
Technical Level 1
Commercial Level 1

8. January 29, 2015 Third Party Material Procurement Overview NH
 Approval by commercial signatory  Approval by technical signatory  Procurement Pool
(5)
Subject
Operator
Sending Purchase Order
Procurement Controller
(Manual)
Receiving notification from SharePoint: PO is signed.
1. Check Signatures
2. Prepare e-mail to current supplier
- Addressee:
TO: Supplier
CC: Logistic, Procurement Team, (for critical
deliveries/works, quality management)
- Attachments:
- PO
- New Code Of Conduct
- Standard T&C_UAE_Dec2014
- Text
3. Update SharePoint
- Proc Actions
- PO sent to the supplier date
4. Upload sent e-mail to SharePoint, via “PO Link”, “View
PO”
Text example “email to supplier”:
Good evening ,
Please find attached Purchase Orders for your
immediate processing.
Kindly acknowledge the receipt of the same &
advice the delivery date.
Thanks & Best regards
Nils Hass
Procurement Team
IC Building Technologies
SIEMENS LLC
9/F, The Galleries - Building 2
Downtown Jebel Ali
P.O. Box 2154
Dubai, United Arab Emirates
Screenshot SAP: Update SharePoint
Screenshot SAP: Uploading sent emails
 Order Confirmation (Supplier)
PO sent to the supplier
by Procurement Controller
(involve quality department for critical deliveries/works)

9. January 29, 2015 Third Party Material Procurement Overview NH
(6)
Subject
Operator
Order Confirmation
Procurement Controller
(Manual)
1. Received OC - sent e-mail to logistic in case they are
not in the CC
2. Upload OC to SharePoint via “PO Acknolegment
Link”, “View OA”
After 3 days, send reminder with ultimatum or call supplier
Screenshot SAP: Uploading Order Confirmation
 Logistic takes over
(7)
Subject
Operator
GRN
Logistic Team
The acceptances of the delivery and the receipt goods or
services (GR) are to be carried out by the Logistic Team.
To process GRN, the acceptance of the goods or services must
be validated by the original requestor (stamping / signature of
invoices)
 Delivery done
OC
Order Confirmation
received in 3 days
Logistic takes over

10. January 29, 2015 Third Party Material Procurement Overview NH
Attachment 1.1: Standard Material Requisition Template

11. January 29, 2015 Third Party Material Procurement Overview NH
Attachment 1.2: BID Tab
BID
Tabulation
ESN Code
S.No. Unit / Qty. Supplier 1 Supplier 2 Supplier 3 Supplier 4 Unit / Qty.
1 1.00
2
3
4
5
6
7
0 0 0 0
0 0 0 0
0
0 0 0 0
S.No. Response Response Response Response Response
1
2
3
4
5
6
7
8
9
10
11
12
13
14
PROCUREME
NT MGR
TECH
DIRECTOR
Tech.
Director
Exhange
Rates
1 Eur = 4.76 AED AED
1 GBP = 5.88 AED AED
1 USD = 3.68 AED AED
Negotiations
Description
Warranty
Delivery Time in weeks
Signed Code of Conduct, NDA & CR
Second Round Discount
Third Round Discount
Budget
CNI (AED)/Nett Savings
First Discounted Offer
REMARKS : As per Selection Criteria
The Bid tab is issued for the issuance of LOA, all MR1
and MR2 criteria to be fulfilled prior to issuance of
Purchase Order.
Selected Supplier :
c4s easy registration
DAMEX, BPC check
Suppleir Approved with Client
Selection Criteria :
ISO 9001 or equivalent certified
Manufacturing Country (GVS)
PROJECT MGR
Supplier Audit
Supplier from FPL
COMM DIRECTOR
COMMERCIAL
MGR
Risk Evaluation
Quote Comp. on ToCo
GVS Challenger
Frame Agreement
MR2 Criteria
Project Name
Description
Customs Duty ( If
applicable)
Total Cost of Ownershiop
( ToCo)
Project Description
Transport
Installation
CRSA for high risk country
DOR
ISO or equivalent certifications
Validity of offer
Sub Total:
Performance Bank Guarantee
Terms of Payment
Delivery Basis
Local Agent/Representative
Manufacture & Country of Origin
Commercial Compliance on complete Terms and Conditions
Technical Compliance on submitted documents
Code of Conduct, NDA & CR
MR1 Criteria
Liquidated Damages

12. January 29, 2015 Third Party Material Procurement Overview NH
Attachment 1.3: SSJ
Single Source
Justification
Building Technologies, LGR
SCM-BT
Date Dept Location
File references
Proposed Supplier
Description of product/services:
Order value :
Project Name (if applicable):
Reasons for not following 3 quotes / tender process
Quotation received from Supplier known to have required unique capability,
proprietary products or other intellectual property rights.
Insufficient time to obtain three written quotes. (Unforeseeable)
The need for security restricts the number of Suppliers selected to quote.
External customer specified
Item/Service is required to be compatible with installed equipment.
Supplementary or additional to previous competitively sourced requirement
Date of last sourcing :
No responses obtained from other invited suppliers
Framework Supplier / Preferred Supplier agreement in place
One-off advantageous opportunity for short lenght of time
Note: Please provide supporting documents wherever applicable (for e.g, document proof showing that Customer has
specified the product/ supplier)
Remarks/ Comments
Measures taken to mitigate risk
Please describe measures taken to ensure sole supplier source is comforming to market conditions
(such as : benchmark, cost calculation, other quotes,
comparison with references, with existing price, …)
Recommendation agreed by
Project Mgr Name Signature
Commerical Head Name Signature
Procurement / Supply Chain Mgr Name Signature
Requested by

13. January 29, 2015 Third Party Material Procurement Overview NH
Attachment 3.1: Create New Material in MM in Sales Org 2513
NoMaterialNameMaterialTypePlant
Distr.
Channel
Unitof
Measure
Material
Group
Business
Unit
ProductHierarchyProfitCenter
Purchasing
Group
ValuationClass
Price
AED
SalesText
ECCN
CODES
DEUSHSCode
1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
18
19
20
21
22
23
24
25
26
27
28
29
30
31
32
33
34
35
PreparedBy:Tel:Date:Signature
tobesendtoMsRathiManjunath
CreateNewMaterialinMMinSalesOrg2513

14. January 29, 2015 Third Party Material Procurement Overview NH
Attachment 3.2: Request for product specific data (1)
Template for Supplier Declaration Form
(Use letter layout for external correspondence)
Request for product specific data
Ladies and Gentlemen,
. In order to comply with foreign trade and customs legislation we require various product-specific details for the
products you sell.
Could you please therefore let us know
 The classification according to the U.S. Export Administration Regulations the case of US products
(ECCN according to the U.S. Commerce Control List)
 The HS code
 The country of consignment/origin (LKZ) of the goods requested/ordered
Without this information it is not possible to ensure full compliance with the relevant legal requirements. The
information forms part of the commercial terms.
Please enter the code in the boxes provided for each item specified (see enclosure). Please return the
completed list to the
( ) address
( ) fax number
( ) e-mail address shown in
the header. Many thanks.
..............................................................................
Signature, company stamp

15. January 29, 2015 Third Party Material Procurement Overview NH
Attachment 3.2: Request for product specific data (2)
Siemens LLC Address of supplier:
Supplier number:
Transaction/order No.:
Item Productdescription Product code
Supplier
Internal
Siemens No.
HS Code or
statistical
commodity code
(8 digits)
ECCN
as per U.S.
CCL *
1
Country of
origin(country
code *
2
)
1
2
(Please use additional sheet if required)
In case above table is empty, we confirm the following regarding the items supplied by us to Siemens.
1. contains US origin, (Yes / No) or
2. any visible indication that item contains US hardware e.g. label „made in USA“ on product or attending
papers; (Yes / No) or
3. any functional indication, insinuating to US content, e.g. US operation software, US application software, etc.
(Yes / No) or
4. item purchased from a US company or US affiliated company? (Yes / No)
*
1)
Details
 If the product is not subject to U.S. Export Administration Regulations (not a U.S. product / no U.S. content
/ no U.S. manufacture under license) = No
 If the product is subject to U.S. Export Administration Regulations = Specify the relevant ECCN (Export
Control Classification Number if possible, with sub-number (Example: 5D992b2))
*2)
Country of origin (ISO Alpha2 Code – Example Germany=DE)
Company stamp, signature:
.......................................................
Place Date
Request form for export data, Date:

16. January 29, 2015 Third Party Material Procurement Overview NH
Attachment 4.1: PO example (1)

17. January 29, 2015 Third Party Material Procurement Overview NH
Attachment 4.1: PO example (2)

18. January 29, 2015 Third Party Material Procurement Overview NH
Attachment 4.1: PO example (3)