2019 ipsm conference_07_tural vazirov

▪ 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

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

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

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

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

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

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.

Future Procurement
FutureProcurementPlatforms
Oracle Aconex (DC platform)

Future Procurement
Oracle Aconex (DC platform)
FutureProcurementPlatforms

Resultsasoftoday
▪ Vendor management system
▪ Assurance in transparency
▪ Agile procurement
▪ Keeping company image
▪ Readiness to cooperate with each market player

2019 ipsm conference_07_tural vazirov

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2019 ipsm conference_07_tural vazirov