Material Supplier Guide - Petro Rabigh - Home

Material Supplier Guide

Supplier Relations Version 1.13 (Jan.2017)

Materials Supply Department

Petro Rabigh Company 1|Page

Table of Contents Acronyms/Definitions ........................................................................................................................4 Introduction ......................................................................................................................................5 PRC Mission and Vision ......................................................................................................................5 Mission ...................................................................................................................................................... 5 Vision......................................................................................................................................................... 5 Relationships .....................................................................................................................................6 Supplier Relations ..................................................................................................................................... 6 Registering with Petro Rabigh................................................................................................................... 6 Local Suppliers ...................................................................................................................................... 6 International Suppliers.......................................................................................................................... 6 Trader .................................................................................................................................................... 7 New Registration Request ........................................................................................................................ 7 Supplier Information Update .................................................................................................................... 7 Supplier Agency Linkage ........................................................................................................................... 8 Supplier Performance ............................................................................................................................... 8 Access to Petro Rabigh.............................................................................................................................. 9 Temporary Access ................................................................................................................................. 9 Introducing New Products ................................................................................................................ 9 Counselling Meeting ......................................................................................................................... 9 Delivering Bids................................................................................................................................... 9 Delivering Goods ............................................................................................................................... 9 Safety Requirements ................................................................................................................................. 9 Bidding and Award........................................................................................................................... 11 Request for Quotation (RFQ) .................................................................................................................. 11 Quotation ................................................................................................................................................ 11 Awarding ................................................................................................................................................. 11 Purchase Agreement (PA) ................................................................................................................... 11 Purchase Order (PO) ........................................................................................................................... 11 Order Acknowledgement ........................................................................................................................ 11 Delivery ........................................................................................................................................... 12 Packaging ........................................................................................................................................ 12 Payments ........................................................................................................................................ 13 Supplier Relations Version 1.13 (Jan.2017)



Detailed Payment instructions................................................................................................................ 13 Invoice Requirements ............................................................................................................................. 14 Evaluated Receipt Settlement/Self Billing .......................................................................................... 14 Manual Invoice Submission ................................................................................................................ 14 Invoices Submission Address and Required Data ................................................................................... 14 Bank Data Submission ......................................................................................................................... 14 Inquiry Submission .............................................................................................................................. 15 Contact Information......................................................................................................................... 16 Appendices ...................................................................................................................................... 17




Abbreviations

Introduction

Mission and Vision

Relationship

Bidding and Awarding

Delivery

Packaging

Payments

Contact Us

Appendices

Acronyms/Definitions Acronym BCD E-GR ERS GI GOSI GRN GR ISO KPI MRO MSDS MSG OHSAS PA PO PPE PRC RFQ SAGIA SASO SES SRU


Definition Bid Closing Date Electronic Goods Received Evaluated Receipt Settlement Goods Issued General Organization for Social Insurance Goods Received Note Goods Receipt International Organization for Standardization Key Performance Indicator Maintenance, Repairs, and Operations Material Safety Data Sheet Material Service Group Occupational Health and Safety Assessment Series Purchase Agreement Purchase Order Personal protection equipment Petro Rabigh Company Request for Quotation Saudi Arabia General Investment Authority Saudi Standards, Quality and Metrology Organization Service Entry Sheet Supplier Relations Unit



Abbreviations

Introduction

Mission and Vision

Relationship


Delivery

Packaging

Payments

Contact Us

Appendices

Introduction Petro Rabigh places great emphasis on the quality and reliability of its products. In order to achieve that, we count on the effort and contribution of all our stakeholders. Our suppliers play an essential role in our overall performance. Therefore, we expect from our suppliers the highest level of commitment to achieve the performance and quality level we strive for and realize Petro Rabigh’s Mission and Vision.

Petro Rabigh (PRC) Mission and Vision Mission To maximize stakeholder value with our integrated resources in a sustainable, world class manner. “We are constantly searching ways to continuously improve our performance. We are striving for a seamless integration of all our assets into a streamlined, fault-free, learning organization. We focus on creating lasting, sustainable value in all our endeavors.”

Vision Globally Recognized, Locally Committed. “Our products are recognized and marketed throughout the world. We are the preferred local and international long-term business partner for our customers. The growth and sustainability of our local communities are important to us. We value and respect them, and we support their durable development to the best of our abilities.”




Abbreviations

Introduction

Mission and Vision

Relationship


Delivery

Packaging

Payments

Contact Us

Appendices

Relationships Supplier Relations Supplier Relations is the entity within Petro Rabigh that is responsible for establishing and managing relationships with suppliers. Supplier Relations is responsible for coordinating business related (suppliers relations) communication between the Company's suppliers and its external customer regarding the supplier's evaluation in compliance to Petro Rabigh business terms. Supplier Relations is the primary organization in Petro Rabigh responsible and authorized to pre-qualify and/or disqualify new suppliers and register them in the Company's supplier database. It is our aim to nurture these relationships to be mutually beneficial, pursuing the highest level of ethics in business and excellence in the supply chain. Understanding the significance of relationships with our suppliers, we work locally and internationally to ensure the needs of Petro Rabigh's operations and projects are met.

Registering with Petro Rabigh (PRC) For PRC to register a supplier, the following documents need to be submitted:

Local Suppliers         

Company Profile Signed and stamped Vendor Registration form Confirmation/approval of Petro Rabigh Supplier’s Code of Conduct Identification letter from the bank with company name/IBAN account no./CR no. Copy of valid Commercial Registration certificate Copy of valid Chamber of Commerce certificate Copy of valid Zakat certificate Sales authorization certificates/product certifications (sole agent, trader, distributor, agent), if applicable ISO & OSHAS certificates, Quality Management System and other manuals (uncontrolled copy), if applicable

International Suppliers       

Company Profile Signed and stamped Vendor Registration form Confirmation/approval of Petro Rabigh Supplier’s Code of Conduct Identification letter from the bank with company name/IBAN account no./CR no. Copy of valid Commercial Registration certificate, if applicable Sales authorization certificates/product certification (sole agent, trader, distributor, agent) if applicable ISO & OHSAS certificates, Quality Management System and other manuals (uncontrolled copy), if applicable




Abbreviations

Introduction

Mission and Vision

Relationship


Delivery

Packaging

Payments

Contact Us

Appendices

Trader         

Minimum two years in business Suppliers Profile and Introductory letter Supplier to provide "Certificate of Authorization" for list of agencies or manufacturers or brand principles. ISO & OHSAS certificates, Quality Management system and other manuals (uncontrolled copy), if applicable Signed and stamped Vendor Registration form Confirmation/approval of Petro Rabigh Supplier’s Code of Conduct Copy of valid Commercial Registration certificate Copy of valid Chamber of Commerce certificate Copy of valid Zakat certificate

New Registration Request 



Suppliers may send an email to Supplier Relations at ([email protected]) o As a Representative/Trader/Agent  Vendor Registration Form (F-040 or F-041) Manufacturers send an email to Supplier Relations at ([email protected]) o As a Local Manufacturer  Local Manufacturer Registration Form (F-042) o As an Overseas Manufacturer  Overseas Manufacturer Registration Form (F-043)

Supplier Information Update Requests for updates must be sent by email to Supplier Relations at ([email protected]) 

To update a supplier’s record, the supplier should provide the following: o For a Supplier Ownership Update  Company/establishment letterhead authenticated by Chamber of Commerce that includes the supplier ID number and the new owner’s name  Up-to-date Article of Association (for companies only)  Copy of new owners’ Government IDs o For a Supplier Government Certificates Update  A copy of valid Commercial Registration Certificate or Business license  A copy of valid Chamber of Commerce Certificate  A copy of valid General Organization for Social Insurance Certificate (GOSI)  A copy of valid Industrial License (for manufacturers only)  A copy of valid SAGIA License (for investors only) o For a Supplier Contact Information Update  Completely filled out Supplier Information Data Update Form (F-018)




Abbreviations

Introduction

Mission and Vision

Relationship


Delivery

Packaging

Payments

Contact Us

Appendices

o

For Bank Account Update  Identification letter from Bank detailing company name, bank account no., IBAN no., Swift Code and Currency To update commodities/MSGs, suppliers should provide the following: o For Vendors/Manufacturers Commodity Update (DELETE):  A company/establishment letterhead authenticated by the Chamber of Commerce that includes the supplier ID number and the MSGs numbers that require deletion. o For Vendors Commodity Update (ADD)  Vendor Registration Form (F-040 or F-041) o For Manufacturers Commodity Update (ADD)  Local Manufacturer Registration Form (F-042)  Overseas Manufacturer Registration Form (F-043)



The required forms, along with required documents listed in the registration forms, should be submitted to Supplier Relations (see Contacts Section).

Supplier Agency Linkage 

To link an approved local supplier to approved sources for products they represent either as sole agent or authorized agent, the supplier is requested to send the following by email to Supplier Relations ([email protected]) o Copy of the Sales Authorization letter, Agency letter or letter of Representation from Manufacturer

Supplier Performance Supplier performance is measured by a set of key performance indicators (KPIs) that reflect actual supplier performance across different aspects of doing business with Petro Rabigh. This procedure covers the performance evaluation of EX-WORK suppliers providing materials, equipment, spare parts, supplies, etc. to Petro Rabigh. Evaluation is a continuous process in which the designated Supplier performance can be evaluated spontaneously based on Evaluation Criteria & Values extracted from SAP Reports. The supplier performance evaluation will be done once every year for active suppliers that have provided goods to the Company. The elements of these parameters are derived in the system as follows: Category Delivery Quantity Reliability Price Quality


Sub Category (KPI) EX-Work-PO date versus Pick Up date GR Quantity is equal to or greater than the order quantity Payments and price change terms, discounts GR return in the system or Rejection Percentage


Weight 30% 30% 20% 20%


Abbreviations

Introduction

Mission and Vision

Relationship


Delivery

Packaging

Payments

Contact Us

Appendices

Access to Petro Rabigh Temporary Access Suppliers are always welcome to visit Petro Rabigh with temporary access. However, it has to be for a business related topic such as the following: Introducing New Products Should suppliers wish to introduce a new product, they should contact Supplier Relations at: Manufacturers: [email protected] Vendors: [email protected] Counselling Meeting Suppliers should coordinate with Supplier Relations to arrange a counselling meeting. Delivering Bids If suppliers would like to submit a bid directly to PRC, they should contact Supplier Relations to request a temporary access. Delivering Goods Suppliers should coordinate with the concerned customer within Petro Rabigh to facilitate temporary access.

Safety Requirements Suppliers must comply with all materials handling safety requirements, which include, but are not limited to:  Appropriate clear space on the loading dock and in the warehouse must be designated.  Only certified personnel shall operate forklift and other mechanical handling equipment.  Supplier shall provide its transport driver with a Material Safety Data Sheet (MSDS) for each of the hazardous materials / chemicals being transported to Petro Rabigh, upon collection of goods.  Supplier shall provide personal protection equipment (PPE) such as gloves, safety spectacles etc. as indicated by the MSDS, to the crew transporting hazardous materials / chemicals.  Supplier shall comply with a safety checklist to ensure minimum safety requirements, during material transportation, including: o Emergency preparedness procedures and training, including emergencies on highways. o First aid equipment and supplies. o Equipment safety test approval status. o Fire prevention and control equipment, etc. o Supplier shall provide required training to its employees (who are transporting / handling materials being supplied to Petro Rabigh) on the correct lifting and carrying techniques to prevent personal injury.  Suppliers are expected to conduct their business and provide products to Petro Rabigh in such a manner as to prevent incidents, control occupational injuries/illnesses, and reduce damage to property or the environment. Supplier Relations Version 1.13 (Jan.2017)



Abbreviations

Introduction

Mission and Vision

Relationship


Delivery

Packaging

Payments

Contact Us

Appendices

 





Suppliers performing service activities on Petro Rabigh premises are obligated to adhere to Petro Rabigh safety rules and regulations. Government Regulatory Compliance: Suppliers shall comply with all applicable governmental regulations. These regulations relate to the health and safety of the workers, environment protection, toxic and hazardous materials. Suppliers should recognize that the applicable government regulations might include those in the country of manufacture, as well as in Saudi Arabia (the country of sale). We require our suppliers to carry out their operations in a safe manner in line with relevant regulations, approved codes of practice and industry best practice, and in a way that does not expose any person to the risk of injury or illness. Accordingly, suppliers are expected to demonstrate a clear commitment to Health and Safety Management and maintain effective policies and procedures. We expect suppliers to have provided training to their employees and anyone else impacted by their activities, which may include: training in use of work equipment; manual handling; risk assessments; fire safety, emergency response and preparedness; first aid; personal protective equipment and training relevant to the particular health and safety risks relevant to or created by that organization's operations. Suppliers should ensure the provision and maintenance of protection equipment, at no cost to the workers. Under the hierarchy of control measures, personal protection equipment is deemed the last line of defense and as such must offer the necessary protection against foreseeable hazards.



Petro Rabigh Company 10 | P a g e

Abbreviations

Introduction

Mission and Vision

Relationship


Delivery

Packaging

Payments

Contact Us

Appendices

Bidding and Award Request for Quotation (RFQ) Details of materials requirements and all terms and conditions will be provided in requests for quotations (RFQs), purchase orders (POs), and procurement agreements (PAs), which must be adhered to. Suppliers shall view the RFQs to understand requirements, and clarify requirements with buyers. (Appendix A, A.1)

Quotation RFQs may be for PAs or POs and should be quoted accordingly. The RFQ will detail the requirement for goods and how it should be submitted. Suppliers shall acknowledge their intention to quote or not, and if not, to provide a justification. Suppliers must submit their bids no later than BCD and according to all specific requirements. Regarding chemical materials, suppliers must provide the shelf life, lead-time, storage condition, and packaging size at the time of submitting their bids.

Awarding The prices stated on the front of Purchase Orders include all charges for packaging, handling, documentation, storage, transportation to point of delivery, SASO certificates and other taxes.

Purchase Agreement (PA) PAs are awarded when a supplier bid is successful. A PA is an agreement to simplify future supply against Purchase Orders, but is not a guarantee of business. The PA shall be signed by both parties in hardcopy. Purchase Orders may be issued with reference to the already agreed terms and conditions for items covered by the PA.

Purchase Order (PO) POs are awarded when a supplier bid is successful, or can result from a previously awarded PA.

Order Acknowledgement Suppliers will be deemed to have accepted all Purchase Orders, along with the applicable Purchase Order Terms and Conditions, by acknowledgement within (3) days to [email protected]




Abbreviations

Introduction

Mission and Vision

Relationship


Delivery

Packaging

Payments

Contact Us

Appendices

Delivery  

    

Shipment or delivery of goods shall be in accordance with the schedule specified in the order. Shipping documents should be submitted a week prior to shipment arrival day. Any extra charges or penalties incurred due to delay in submission of shipping documents will be charged to the supplier’s account. Goods purchased are subject to inspection, testing and approval. Rejected orders may be returned at the supplier’s cost. Seller will provide the Buyer with the latest material safety data sheets (MSDS) for any chemical substance determined to be a hazardous material. If Seller does not meet or appears to be unable to meet the delivery schedule, it will promptly inform the Buyer in writing of the reasons for delay and the estimated duration of delay. Suppliers may ship via expedited routing to meet the delivery schedule or to recover time lost, with the cost difference paid by the Supplier.

Packaging 

Once goods are ready for shipment they should be packaged according to specific packaging requirements detailed in the PO.




Abbreviations

Introduction

Mission and Vision

Relationship


Delivery

Packaging

Payments

Contact Us

Appendices

Payments Payment is the final stage in the supply chain process and should progress swiftly and efficiently if the following procedure is followed carefully: All invoices should be sent to [email protected] with the appropriate documentation. Depending on the type of supply and Vendor location, documentation may include: 1. Goods Received Note (GRN): It is the responsibility of Vendors to ensure that invoices are submitted with GRN where this is applicable or quote the GRN reference no. on the invoice. Invoices submitted without GRN will be put on hold until GRN is available. 2. Electronic - Goods Received (e-GR): Where delivery is made directly to a proponent

instead of the warehouse, an e-GR should be generated by the proponent with a copy to the Vendor or the reference no. quoted on the invoice. Vendor must not send invoice to finance until the e-GR is available. 3. Service Entry Sheet (SES): When the service is provided, it is the duty of the Vendor to ensure that the Proponent completes a Service Entry Sheet for him. Finance will not make payment without an SES or its reference no. quoted on the invoice. 4. Bill of Lading: For International/Local Ex/work, payment can only be made if the invoice is accompanied by a copy of Bill of Lading. Invoices without this will be rejected. Vendors should obtain documentation prior to submitting invoice to Finance. Vendors should not expect hastily completed invoices without the relevant documents to be paid by Finance. Invoices with the correct documentation, however, will be settled efficiently in line with contracts.

Detailed Payment instructions Petro Rabigh encourages suppliers to utilize the Supplier Portal Finance Data tab, which enables suppliers to know their payment status, Zakat, and GOSI validity. The supplier is accountable for billing Petro Rabigh immediately after the GR/SES is approved by the Petro Rabigh customer. Petro Rabigh will not send any follow-up notification for the unbilled GR/SES. Suppliers can search for payments through the Supplier Portal with the following searching keys:   

Purchase Order Contract No./Outline Agreement No. Duration

Note: All invoices/payments will be blocked in case of invalid Zakat/GOSI certificates. (Retention) For Zakat updates, suppliers shall scan the certificate and send it directly to Vendor Master Payable Div. (see Contacts Section). For GOSI updates, see Supplier Information Update.




Abbreviations

Introduction

Mission and Vision

Relationship


Delivery

Packaging

Payments

Contact Us

Appendices

Invoice Requirements Evaluated Receipt Settlement/Self Billing Petro Rabigh prefers to process payments through the automated system known as the Evaluated Receipt Settlement (ERS). This system creates an electronic invoice once the Goods Receipt or Service Entry Sheet is approved. This replaces the need for suppliers to submit a manual invoice. Suppliers should ensure ERS settings are applied during registration and should check the status of each PO item by viewing the PO online to see whether the Self Billing indicator is checked in the Invoice tab of the order details screen.

Manual Invoice Submission Manual invoices may be required where automatic invoicing has not been granted, or where the nature of the order item requires a manual invoice, such as for progress payments. Details of how to submit hard copy invoices are described in the PO. To ensure the timeliness of payment, please be careful to comply exactly with the requirements and avoid invoice rejection. An invoice must contain the following information:        

The invoice date and a unique invoice number (no more than 16 digits). Petro Rabigh purchase order number (starting with 45, 48 & 49) and a supplier ID. The PO line item number must be indicated for suppliers’ invoices. The currency of the invoice must match that of the referenced PO. The total invoice amount is shown numerically and in words. All supporting documents must be attached to the invoice, including Service Entry Sheets (SES) or Goods Recipient (GR) documents. The supplier’s name must exactly match the name on the commercial registration, the contract, or purchase agreement and Supplier Master File. The retention amount must be indicated for Service invoices, if applicable.

Invoice Submission Address and Required Data Bank Data Submission Petro Rabigh does not accept bank data written on the invoice. Suppliers are required to submit the following bank data on their company’s original official letterhead signed by an authorized person and authenticated by their bank (or stamped) to Operations Accounting (see Contacts Section):  

Supplier number Telephone number



Business email address



Fax numbers



Bank Name



Account numbers



SWIFT or routing number (for out-of-Kingdom banks only)



IBAN number




Abbreviations

Introduction

Mission and Vision

Relationship


Delivery

Packaging

Payments

Contact Us

Appendices

Inquiry Submission For any inquiry related to payment, please contact the Vendor Master Payables Division (see Contacts Section).




Abbreviations

Introduction

Mission and Vision

Relationship


Delivery

Packaging

Payments

Contact Us

Appendices

Contact Information   

Supplier Relations Registration Update Linkage

Procurement   

RFQ Quotation PO

Contact

Logistics    

Pick-up Delivery Shipping Customs Clearance

Purpose Manufacturers: - Manufacturer registration (Local & Overseas) - Manufacturer inquiries

Supplier Relations

Supplier Relations

Vendors: - Vendor registration (Local & Overseas) - Vendor Inquiries Supplier Development: - Supplier inquiries - Temporary access for supplier visit

Invoices Payment

 

Telephone/Fax/Email T: (012) 425-8633 F: (012) 425-1978 manufacturer.registration@petrorabigh. com T: (012) 425-8633 F: (012) 425-1978 [email protected] T: (012) 425-8902 F: (012) 425-1978 [email protected] T: (012) 425-8921 [email protected] T: (012) 425-8318 F: (012) 425-1978 [email protected] T: (012) 425-8910 [email protected]

Chemicals - Chemical procurement inquiries

T: (012) 425-8914 [email protected] T: (012) 425-9457 [email protected] T: (012) 425-8567 [email protected]

PRC Logistics - Logistics inquiries DHL - 3PL forwarder inquiries - Invoice submission

Finance

 

Supplier Relations Issues Concerns

Supplier Inquiries: - Issues, Concerns, and Complains MRO - Spare parts procurement inquiries

Purchasing

Logistics

Finance

- Invoice follow-up - Payment follow-up


T: (012) 616-5685 Ext. 2021 F: (012) 616-5829 [email protected] F: (012) 425-8615 [email protected] T: (012) 425-8406 [email protected] T: (012) 425-8616 [email protected]



Abbreviations

Introduction

Mission and Vision

Relationship


Delivery

Packaging

Payments

Contact Us

Appendices

Appendices

(Appendix A) (Appendix A.1)




Material Supplier Guide - Petro Rabigh - Home

Recommend Documents