Post on 03-Jan-2016
description
Adrienn Nagy dr. Leader
Corporate Services Business Supervision and Process Management
Budapest 14/11/2007
Procurement Audits
AGENDA
• What is Audit about?• Procurement Lifecycle
Audit • Audits in 2006-2007• Recommendations• Audit Effects• Process Transparency• Ethical Behavior
Audits 2006-2007
Audit Outcomes affect:
Procurement processes
Practices
Ca. 30 Procurement Audits Prepared
LogisticsRoad transport; Rail / BargeChemical Road;Bitumen Road + Follow-up
ITIT Procurement General
Notebook Tender 2007
Retail Tebodin project management regional Contract execution
BT PipelineTechnical specification
Tank cleaning Bid evaluation
Procurement Policy elaboration (Moscow) / update / supervision
Contract testing: compliance, archiving
Audit Initiated by CS DirectorGCFO
Inter-business
Procurement Leader
Procurement Process
Subsidiary AuditsMOL Romania+ Follow-up
Branch AuditsPakistan/Kazakhstan
Moscow + Follow-up
Audit performed by:
CS Business Supervision
•Set-up in Q3 2005• Monitor Procurement Practices•Introduce and unify best practices•Yearly Audit Plan and single initiations to investigate• Audit Report with Recommendations•Audit Follow-up•Regulations update, Process improvement
-Contact for Suppliers complaints, networking
-Advises on Transparency, Ethical and Procurement Process issues
-Cartel Risks; follow-up, risk mitigation
-Breach of Contract supervision
Suppliers Relations
Procurement Lifecycle Audit
AUDIT Investigates the complex Procurement Process
6. Post-evaluation of Supplier Performance
GRADING
1. Supplier pre-qualification
2. Bidding Procedure
3. Bidding Evaluation
Negotiation and communication with
Suppliers
4. Contracting
5. Contract Performance
Fair & Reliable
Guarantee issues, Eventuel Breach of Contract
Basis for Invitation to Bid (ITB) AU
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Impact of Audit Recommendations
• Process compliance with laws and Group regulations
• Process rationality and efficiency
• Input for decision making • Opens discussion on future
procedure, introduces new best practices
• New control point elaboration• AUDIT FOLLOW-UP!
PROCESS MONITORING AND FEEDBACK TO
PROCUREMENT
AUDIT RECOMMENDATIONS
PROVIDE
Positive Effects of Audit Recommendation
• How to communicate suppliers in a bidding process – fair procedure & international standards
• Enforce open gates principle – always invite newcomers from the relevant market
• New Group level Ethical Code
• Draft Procurement Ethical Code
Initiates Procurement Process Changes & Practices
Affects Change in Regulatory Environment
Process Transparency & Ethical Behavior
TRANSPARENCY and Procurement
Why to enhance TRANSPARENCY?
What is to be TRANSPARENT?
Common Business Value
Duly Keeping Processes & Deadlines
Open Gates Principle
TRANSPARENT Communication with Suppliers
Process Transparency - We expect the same Approach!
MOL ensures that Suppliers are familiar with the Procurement Processes, deadlines.
OPEN GATES PRINCIPLE:market surveys and invitation of new Suppliers
NO Cartels / effective detection / MOL surveys Supplier activity and has the possibility to submit Cartel suspicion to National Competition Authorities or even to the EU Commission
MOL expects fair and complete documentation, correct pricing from Suppliers in a Bidding
Keep deadlines, do not wait for the last seconds when submitting your documents in a Bidding
NO Cartels / individual pricing / ensure individual strategic behaviour in the bidding
Correct Contract Performance / warranty issues / influences evaluation and the fact that you get on the invited list for the next Bidding!
MOL OFFERS YOU ARE REQUESTED TO
ETHICS and Procurement
Corporate Ethics
Group level OBLIGATIONS & EXPECTATIONS
MAIN Source: MOL Group Ethical Code
International Standards & Best Practice
Ethical Code is to be attached to all contracts for signature
NEW
Ethical Behavior We expect the same Approach!
• All information with regard to relations between MOL Group and its suppliers is considered confidential.
• We will not misuse our position in the marketplace, • Creating equal conditions for all our business partners. • We expect our Bidding and contracted partners to act in the same manner.
• Avoid personal financial interests and do not misuse occupied position.
• Honesty and Integrity • We condemn any form of bribery or the acceptance of unlawful business advantage• We discourage the offering of gifts, and we forbid our employees to accept them.
Mutual Trust and Respect
Conflict of Interest
Prohibition of Unlawful Advantage
Ethical Code is attached to all Procurement Contracts but have to stick to it throughout the Bidding Process!
Contact & Thank You for your attention!
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PROCUREMENT AUDIT helps MOL Group Procurement to be EXCELLENT in the CEE Region.