Corlido b'v'

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Procurement Logistics
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• Brief overview of Corlido
• Procurement services
• Operational process
• Control management
• e-Procurement

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Brief overview

• Active since 1995
• Trading House for the Industrial area
• Global Customers (Shell, Wood Group, Stork, ABB,
  etc.)
• 15 employees
• Member of the Wegro Beheer-group

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Our position in the market
Customer
CORLIDO
Specify
Select
Contract
Operational procurement (Transactional)
Tactical / strategic procurement
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Services

• Procurement and Logistics (Trading House)
• On project basis
• Long term contract
• Warehouse Facilities
• Schoonebeek
• Aberdeen
• Moscow
• Yuzhno-Sakhalinsk

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Added Value

• Purchasing of Low Value / Low Risk goods
  therefore more time for own staff to add more
  value to core activities
• Purchasing services for projects, no additional
  fixed labour costs
• Examination and restructuring of warehouse
• Managing and/or taking over the warehouse
  function

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Procurement services

• Compensation schemes
• Fixed Fee per order line
• Fixed amount per month
• Percentage of the order value

or Combination of these Fees
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Product range

• Spare Parts
• Telecommunication Equipment
• Computer Equipment and Supplies
• Hoses and Couplings
• Material Handling Equipment
• Household
• Medical Equipment
• Flanges Fittings

• Fire Fighting Equipment
• Bolts, Nuts and Stud Bolts
• Paint and Coating
• Tools and Machinery
• General Equipment
• Storage Equipment
• Engineered Items
• Personal Safety Equipment

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Order Management
Order (from customer)
Order to supplier
Goods Receipt
Delivery
RFQ

• - Orderconf.
• - Price
• - Del. Time
• Expediting
• Update SAP / EBPro

- RFQ to suppliers - Expediting

• Take-up in order administration
• - Communication / Fine tuning
• - Sourcing

• - Check
• Labeling
• Bar coding
• - Packaging on final destination / location of
  customer

- lt 24 hrs - Receipt Customer - ERS
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Control Management

• Authorization
• Order management
• Tracking and Tracing
• Evaluated Receipt Settlement / Self Billing
• Tendering-process
• Right to audit
• Management reporting / Quality system

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Authorization (per line-item)

• Purchasing department (Corlido) lt 2.500,-
• Purchasing Manager (Corlido) lt 5.000,-
• Management (Corlido) lt 12.500,-
• Contract Holder (Customer) gt 12.500,-

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Order management

• Filing procedure
• Order status on line-item level
• Completion control on line-item level
• Matching ERS on line-item level
• Inconsistency report to Contract Holder

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Tracking Tracing
Intake control
Reception Control
Reception sign
Ware. Loc. Final dest.
Shipment to Final des.
Supply .order Account man.
ref.nr. art.nr.
-Matching Contents with delivery ticket
-Reception labels on item level art nr receipt
nr ref nr order description. art. Linked to
order nr
-Matching order with receipt
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Evaluated Receipt Settlement

• Advantages
• No double intakes / invoices
• No price differences
• Less Account Payable transactional work

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Tendering Process

• General discount agreements with regular
  suppliers
• (Revised yearly)
• Value of order line gt 2.500,- tendering at 3
  suppliers
• The documented Supplier evaluation captures the
  quality of
• System Correctness
• On-time delivery
• Completeness
• Customer satisfaction

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Right to audit

• Permanent insight in the order files
• Right to periodic audit of files to review
  commerciality

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Management reporting

• Development of Key Performance Indicators
  (KPIs)
• Delivery performance
• Order throughput
• Number of orders
• Assortment management
• Management Information Reports

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Traditional procurement process
1. Search catalogue
13. Invoice matching and payment
2. Fill in requisition form
12. Invoice receipt
3. Get budgetary approval
11. Delivery to internal customer
4. Get another approval
10. Order picking and delivery
9. Order confirmation
5. Send requisition form to purchasing dept.
8. Send order to supplier
7. Prepare purchase order
6. Check requisition and approvals
Traditional cycle labour-intensive and many
mistakes
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e-Procurement process
1. Catalog Buying
7. Selfbilling and payment
2. Get budgetary approval
6. Delivery to internal customer
5. Order Picking and delivery
3. Get another approval
4. Send order to supplier
e-Procurement shortens traditional cycle
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e-Procurement

• Flexible solution for e-purchasing
• Catalogue buying
• Generics
• Stock Items
• Reduction Total Cost of Ownership
• Adding Value with higher level of services

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Concept e-Procurement
CUSTOMER
-Purchasing
-Sourcing -Tendering -Purchasing
e-PORTAL CORLIDO
-Sourcing -Tendering -Purchasing -Catalog
buying -Generics -Stock Items
Strategic Suppliers
Non Strategic Suppliers
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Concept e-Procurement
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OCI outbound
SAP
E.B.
E-CATALOG
ORDERS
PRO
CORLIDO
OCI inbound
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3
INTERNET
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5
TRADE RANGER
BACK OFFICE
XML
PORTAL
CORLIDO
PETROCHEM. IND.
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Concept e-Procurement
Shopping
E-catalog Corlido
Import shopping card
SAP
Process in SAP/ Authorisation
Back Office Corlido
Orderconfirmation XML / CSV E-mail
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Advantages

• Integrated orderprocess Customer and Corlido,
• as well as Front-Office as Back-Office
• Improved efficiency
• Less mistakes
• No Price-variances
• Improved users friendliness / simplified use
• Improved data information flow
• Content management by supplier
• Streamlined buying process/ Improved Suppliers
  Control

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References
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Procurement Logistics
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CORLIDO RUSSIA 1 Yamskogo Polya, 17/1 125124,
Moscow, Russian Federation Tel. [phone]
7270, 937 7271 Fax. [phone] Mobile 7
(903) 680 07 83 Grigoryan_at_corlido.ru
www.corlido.ru