SUPPLY CHAIN MANAGEMENT UNIT SMME Workshop Kenneth Pillay: Supply Chain Processes 11 June 2008 1 Supplier Registration Process To be an accredited vendor in the CoJ the following is required: COJ Registration Form (Declaration and Commissioner of Oaths) Business Registration Documents – CC’s, etc. Tax and Vat Certification from SARS Latest Municipal Rates and Taxes Account Shareholders or Partnership Agreements/Certificates Business Bank Account/ Cancelled Cheque Certified Identity Documents Statutory Affiliations eg. PSIRA, ECSA 2 Current Supplier Programmes Suppliers Workshops – Quarterly at each Region; Monitoring of the City’s BEE targets (Current 68%) Forward planning of BEE spend; Awareness campaign on BEE related matters for officials of the City; Provide a professional help desk for managing queries; Suppliers awareness campaign of BEE related issues e.g Business Expo’s, Rand Show; Establish partnership with private and public sectors that have advanced in the development and management of BBBEE; 3 City’s Typical Procurement Methods Process Informal Quotations Formal Quotations Tenders/ Bids/ Proposals Contract Call Offs Value < R 30 000 > R 30 000 < R 200 000 > R 200 000 Any Value 4 3 quotes – RFQ 80:20 Procurement Process Flow Ad hoc Procurement Less than R30,000 High Level Process Flow User Confirms Budget & prepares Specification Lead-time for Dept to resolve queries/issues on Requisition Identify suppliers on the CoJ Supplier Database Lead-time to process Quotation Invitation document Lead-time for Quotations from Suppliers Lead-time for evaluation & Award 1 day 1 day If Applicable 2 days Concurrent 1day 3 days 1 day Lead-time to forward Delivery Note & Invoice to Payments Lead-time to resolve performance breaches/issues Lead-time from PO to delivery by Supplier Lead-time to process Requisition & Quotation into Purchase Order 1 day 2 days If Applicable As per contracted Lead Time 2 days Lead-time from Request to placing of Purchase Order with Supplier 9 working days SCMU Supplier Department 3 quotes – RFQ 80:20 Procurement Process Flow Ad hoc Procurement from R30,000 to R200,000 High Level Process Flow User Confirms Budget & prepares Specification Lead-time Process SAP Requisition Lead-time for Dept to resolve queries/issues on Requisition Lead-time to process Request for Quote document Lead-time for SCM Bid Spec Committee to approve RFQ Lead-time for Quotations 7 days Notice Board Website Invitations – 5 Quotes from Database 1day 1day 1 day If Applicable 1day 3 days 7 days Lead-time to forward Delivery Note & Invoice to Payments Lead-time to resolve performance breaches/issues Lead-time from PO to delivery by Supplier Lead-time to process Requisition & Quote into Purchase Order Lead-time for User Consultation with SCMU & report finalised Lead-time for evaluation of Quotes & submission by SCMU * 1 day 2 days If Applicable As per contracted Lead Time 2 days 3 days 3 days SCMU Lead-time from Request to placing of Purchase Order with Supplier Supplier 21 Working Days Department *SCM Will evaluate all quotations received in terms of the 80:20 Points Principle in terms of the PPPF Act Procurement Process Flow Ad hoc Procurement greater than R200,000 Pre Bid Pre Bid Phase Phase Bid Phase Bidding Period Evaluation period 15 Days • • SCM – Bids received scheduled • Set up Bid • Evaluation Committee • BEC Evaluation • • Shortlist (if • applicable.) • Presentations to BEC (if applicable.) • Recommendations finalised • EAC/ CAC Report Finalised Adjudication Period 15 Days SCM – due diligence check on reports Legal Comments on Reports Relevant ED signs of report Confirm/ Schedule CAC and EAC meetings Bid Award Post Bid Phase Time Line Task 5 Days • Confirm Budget • Draft Specification (Dept) • Set up Bid Spec Committee (BSC) • Finalise Specification Agree on evaluation criteria (PPPFA+Others) • Prepare Bid RFP 20 - 35 Days • Bid advertised (14 to 30 Working Days) • Bid docs collected and completed by suppliers • Briefing Session/ Site Visits • Bids received on deadline – accepted for evaluation 20 Days • EAC/CAC to make bid decisions • SCM actions CAC & EAC decisions • Supplier confirmed – award letter • Decision communiqué to all bidders • Contract/SLA proposal with successful bidder • Follow up process – additional conditions of tender award Who? BSC made up of: • User Dept Project manager/ champion/experts • SCM Dept • Other technical team members 7 • SCM Dept • Suppliers • SCM • SCM • BEC made up of: • User Dept • User Dept Project • CAC and EAC manager/ champion/experts • SCM Dept/Legal/Fin • Other technical team members • SCM • Suppliers • SCM • User Dept KEY BIDDING REQUIREMENTS • Some of the key requirements are: – Submission of an original valid tax clearance certificate, or a letter from SARS stating that suitable arrangements have been made with SARS – Form of Proposal Signature & Alterations in the Form of Proposal – Bids must be in accordance with the City specification – Incomplete bidding documents – Insufficient demonstration of capacity and capability – JV and Consortium Requirements – Compulsory Site Meetings – Late tenders • Detailed submission requirements will be contained in the Bidding Documents 8 8 Questions and Answers 9
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