Procurement Expediting Training

PROCUREMENT EXPEDITING TRAINING

MOHD ISHAR ISHAK – Expediting ManagerKuala Lumpur, March 2014

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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

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1. Safety MomentThe 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


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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.

http://en.wikipedia.org/wiki/Project_management

http://en.wikipedia.org/wiki/Construction

http://en.wikipedia.org/wiki/Purchasing

http://en.wikipedia.org/w/index.php?title=Production_control&action=edit&redlink=1

3. Expediting Work Flow


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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.

4. Expediting Execution Plan


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4. Expediting Execution PlanITEM KEY ACTIVITIES TIMING KEY DOCUMENTS / INFO PARTIES

INVOLVEDPHASE 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 CONTACTInforming 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 INPUTExpeditor 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 MANAGERSOM = START OF MANUFACTURING I = INSPECTOR L = LOGISTICSCR = CARGO READY FOR COLLECTION DCC = DOCUMENT CONTROLLER FF = FREIGHT FORWARDERAAS = ARRIVAL AT SITE B = BUYER AO = TECHNIP AFFILIATE OFFICEV = VENDOR / SUPPLIER PE = PACKAGE ENGINEER SC = SECRETARY

NOTES: ABBREVIATIONS

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4. Expediting Execution Plan (continued)ITEM KEY ACTIVITIES TIMING KEY DOCUMENTS / INFO PARTIES

INVOLVED4 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

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4. Expediting Execution Plan (continued)

ITEM KEY ACTIVITIES TIMING KEY DOCUMENTS / INFO 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 STATUSExpeditor 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


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 NOTICEAn 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/ I1

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7 PROGRESS/ STATUS REPORTINGExpeditor 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 INSPECTIONFAT 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 CERTIFICATEIRC 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 DELIVERYUpon 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

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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 DOCUMENTSExpeditor 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

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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 / NCRShould 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

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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

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3 CLOSE OUT MEETINGThis 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 INVOICEThis 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 REPORTThis 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

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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 Plan0 FILING AND ARCHIVING PROCEDURE1 Smartplant Implementation Plan0 Equipment-Material Critical Rating0 Project Equipment Lists0 Documents Class1 Instructions Concerning the Vendors' Documents Required by the Requisition0 Electronic Format Rule for Vendor Documents2 Final Vendor Data and Manufacturers Data Record Books1 Vendor Documents Numbering Procedure1 Engineering Plan1 Vendor Document Management Procedure for Bulk Material Requisitions0 Document Management Procedure2 Electronic Communication Procedure for Vendor Documents - JVD Bulk Material Requisitions

0 Management of changes in C&I - Control & Instrumentation Modification Record (C&IMR)

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2 Project Quality Plan2 Overall Procurement Plan2 Packing, Marking and Shipping Instructions2 Site Services Conditions for Supplier's Specialists2 Purchasing Procedure - General Terms and Conditions for Purchase3 Project Expediting Procedure2 Vendor Quality Control - Inspection Procedure0 TRAFFIC AND LOGISTIC PLAN CUSTOMS CLEARANCE PROCEDURE

Doc Reference Rev. Rev.Date Document Title

0 Non Conformance Procedure at Vendor's0 PARTICULAR TERMS AND CONDITIONS FOR PURCHASE OF DQR PROJECT SUPP

LIES (PTC)2 Project Master Vendors List2 Two-Year Spare Parts Procurement Procedure1 Instructions to Vendors for 2Y SP Record Preparation4 Standardization and Bulk Procurement Procedure0 Particular Terms and Conditions (TPC) for Purchase of Project Supplies

(Onshore)0 Site Material Management Procedure – OSD

5. Interdiscipline Demarcation


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5. Interdiscipline Demarcationa. 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.

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5. Interdiscipline Demarcation (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.

6. Typical Causes of Delays


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6. Typical Causes of Delays#

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.

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6. Typical Causes of Delays#

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.

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6. Typical Causes of Delays (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).

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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

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F. SHIPPING

1 Delay in issuance of Transportation DrawingImpact 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)Potentially further delay in pick-up date, which direct impact on departure date or need to postpone the shipment.

Set-up min / max period for issuance / review / approval of shipping documents

Vessel availability or the lack of it.

3 Special Export FormalitiesPotentially further delay in pick-up date, which direct impact on departure date or need to postpone the shipment.

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

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F. SHIPPING

4 Permit for Local transportNo 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


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7. ChallengesNO. CHALLENGES TYPE MITIGATION PLAN

1 Lack of Cooperation from Project Team Internal Identify Project RequirementIndentify Focal Point and his/her superiorResponsibility 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 MeetingMake Field Expediting VisitGet affiliate Office to send expeditor/inspectorGet 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 / VC6 Time Difference Personal Set an appropriate time for teleconference via email.7 Poor Cooperation from Vendor External Face to Face Meeting

Make Field Expediting VisitGet affiliate Office to send expeditor/inspectorGet 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.

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7. Challenges (continued)NO. CHALLENGES TYPE MITIGATION PLAN10 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 coordinator13 Time Management Problem Personal - could be related to 1214 Late formalization of PO upon engineering

changesInternal Engineering changes to be passed on to expeditor once

made.15 Delay in vessel booking Internal/

ExternalTo 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.

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8. Questions and Answers


My Contact: [email protected]

Thank you

Procurement Expediting Training

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