Centralized Procurement Agent Practices in Large Chinese Enterprise Groups Mr. Zhang Zhifeng Vice...
Transcript of Centralized Procurement Agent Practices in Large Chinese Enterprise Groups Mr. Zhang Zhifeng Vice...
Centralized Procurement Agent Practices in Large
Chinese Enterprise Groups
Mr. Zhang Zhifeng
Vice President
State Grid Materials Co., Ltd
tendering
Contents
General introduction
Centralized procurement agent practices
Advantages of doing centralized procurement through a tendering agent
30+
provincial
transmission
networks
300+
transmission and
substation projects
A Professional Centralized Procurement Agent
established in July 1998
the first professional tendering company in the electric
power industry of China
has provided agent services to dozens of international
thermal, hydro, wind power and transmission projects using
the World Bank, ADB and foreign government loans
has accomplished thousands of electric power projects
the most professional tendering agent in electric power
industry of China
Tendering Projects Funding
Shanghai Waigaoqiao Power Plant 2×900MW Phase I project World Bank
Yixing Pump Storage Power Station project World Bank
Zhanghewan Pump Storage Power Station project ADB
Henan Yuzhou 2×300MW Power Plant project ADB
Shanxi Shentou No.2 2×500MW Power Plant Phase II project Foreign goverment
Shanxi Yangcheng 6×350MW Power Plant project Foreign goverment
Tendering Projects Funding
Jindongnan-Nanyang-Jingmen 1000kV UHV AC pilot project Own fund
Huainan-Shanghai 1000kV UHV AC demonstration project Own fund
Xiangjiaba—Shanghai ±800kV UHV DC transmission demonstration project Own fund
Jinping—Sunan ±800kV UHV DC transmission project Own fund
Three Gorges—Guangdong ±500kV HV DC transmission project Own fund
Three Gorges—Changzhou ±500kV HV DC transmission project Own fund
Qinghai-Tibet ±400kV DC interconnection project Own fund
Transfo
rmer
Instru
ment
transfo
rmer
Lightn
ing a
rreste
r
Capacito
rs
Reacto
r
Arc su
ppre
ssion
coil
GIS
Bre
ake
r
Isola
tion sw
itch
Sw
itchgear
Pow
er ca
ble
Gro
unded lin
e
Tow
er
Insu
lato
r
Fiber o
ptic ca
ble
Fittings
Pow
er
transm
ission
desig
n
Substa
tion
constru
ction
Pro
ject
Superv
ision
Sm
art m
ete
r
Ele
ctricity
acq
uisitio
n d
evice
Bulk o
ffice
su
pplie
s
com
pute
r
Substa
tion
pro
tectio
n d
evice
Com
pute
r m
onito
ring d
evice
DC
pow
er su
pply
Optica
l co
mm
unica
tion
1000kV UHV
35kV~220kV HV
330kV~750kV EHV
220V~10kV
Practices: Centralized Procurement Scope Enlarging
Practices: Centralized Procurement Amount Growing
2005 2011
14.2 billion
80.2 billion
Practices: Regulated Centralized Procurement Procedure
instilled with quality-emphasized and technique-advanced theories
offered open, transparent, and equal platform for all bidders
cultivated a fair-competing market environment within the transmission and
transformation industry
procured high-quality equipment for safe and stable operation of power grid
significantly prevented corruption
Centralized Procurement Agent Practices:Based on former experience, SGM develops a operation procedure
covering all steps, and the procedure has been incorporated into the
E-commerce platform.
Thanks to this platform, a standardized and
transparent centralized procurement operation
procedure has been established to provide free,
equal and unlimited access to bidding for all
potential bidders.
ERP ECP Master DataDecision Making
Decision Making Decision Making
Business Control and Execution
PlanningProcuremen
tContract
Management Execution
Distribution Management
Warehousing Management
Quality Management
Waste Material
Management
Supplier Management and Coordination
Procurement Standards
Specialist Management
Master Data ManagementBusiness Data Management
• More than
28000
experts of
evaluation of
bid
• 5 levels of
experts
major, totally
210 majors
• More than
12500
registered
suppliers
• More than
7000
suppliers
bidding
• Deploy 46
templates
of Contract
• 470,000
Signed
contract
• 150,000
records of
Material
Master Data
• 792
templates of
Structured
Procurement
Standards
• 619
Designing
Institutes
• Completing
234
batches,m
ore than
1100
procurement
projects
• About
2,538,000
bidding files
Procurement Planning
Supplier ManagementBidding
Signed Contract
E-Commerce Platform of SGCC
Procurement Standards
• 536,000
records of
Procurement
Request
• Max 64148
records in
one
procuremen
t batch
From go-live on Jun/2011 to Aug/2012:
Experts Database
Suppliers Management Model : First-level Management of headquarters
Suppliers
Registration on the E-
commerce Platform(ECP)
Audit and approve
Participate in all bidding at E-
commerce Platform(ECP)
Registration of suppliers
Verification of qualification
& performance
Evaluation of
performance of
suppliers
Treatment of bad
behavior of suppliers
Supplies Management
System
Applied to the bid evaluation business
Establish a centralized supplier management system, unify external service window, and enhance the quality of service. Coordinate supplier’s performance evaluation with bidding
evaluation organically, to supporting the bid evaluation.
Strengthening material intensive management by the means of information.
Coordination room, as the coordination institutions of the e-commerce platform(ECP)
in application, through the coordination of scheduling, business monitoring and
statistical information aggregation functions, to globally co-ordinate, monitor and
reasonable coordinate the deployment of various businesses.
Based on the Two-Level and Three-Line operation and maintenance(O&M) system, abide
by the rule of “Unified operation, Unified customer service entrance, Unified operation and
maintenance work orders & problem, Hierarchical management”, establish a e-commerce
features unified operation and maintenance framework.
Headquarters Customer Service Platform ( Call Center-86-10-63411000 )Headquarters Customer Service Platform ( Call Center-86-10-63411000 )
Users of E-commercial Platform(ECP) ( Include internal & external Users )
Computer hardware / network vendor support
Computer hardware / network vendor support
Server hardware / network / channel vendor support
Server hardware / network / channel vendor support
Software provider support
Software provider support
Consulting service
providers Support
Consulting service
providers Support
System M&O
System M&O
Business M&O
Business M&O
State Grid Material
Co., Ltd/Province & State company
Business applications support
Business applications support
State Grid Information Communication Co., Ltd.
State Grid Information Communication Co., Ltd.
State Grid IT support service center
ERP system
E-commerce platform (ECP)
procurement
management
Quality
assessment
expert
manageme
nt
Waste materia
l
program
management
Storage &
distribution
management
Main proces
s
contract
management
procureme
nt standard
Performance
appraisal
Quality
management
Main data
supplier management
Well-organizied Bid Opening Ceremony
Checking bid price online
after bid opening ceremony
Separated Evaluation
Bases for Large Scale
Procurement
Sealing
Communication Tools
Evaluating through
E-Commerce
Platform
Save so
cial a
nd
natu
ral re
sou
rces
to p
rote
ct the e
nviro
nm
ent
provide a more comprehensive and
accurate suggestion to the tenderee for his
centralized procurement decision-making,
and help the tenderee avoid making big
mistakes in his management of quality,
schedule and price level setting.
Rich Experience
Advantages of doing centralized procurement through a tendering agent :
provide comprehensive and accurate
understanding of relevant laws and regulations;
know how to play with international rules and
how to execute regulations of the lending
institutions; good at executing all the
regulations and requirements; can use modern
analysis model to analyze all the bidding data.
Professional Personnel
Advantages of doing centralized procurement through a tendering agent :
The system provides access to all tendering
information, so the procurement is more
efficient, fair and transparent. It stores and
manages a large amount of electronic
documents and thus improves the efficiency
of the procurement activities.
AdvancedE-commerce
Platform
Advantages of doing centralized procurement through a tendering agent :
adhere to the principles of “receiving orderly,
opening transparently and efficiently,
evaluating rigorously and carefully ",
develops a standardized centralized
procedure to ensure that the procurement is
open, fair and just.
Standardized Procurement
Procedure
Advantages of doing centralized procurement through a tendering agent :
based on the professional classification
criteria developed by evaluation experts in
China, SGM establishes a database of experts
with five categories, involving 210 majors.
The pool now has 20,000 experts from around
the country, and it can basically meet the
demand of various types of procurement.
Comprehensive Pool of Experts
Advantages of doing centralized procurement through a tendering agent :
Conclusion
As a professional procurement agent, SGM, for the past 7
years, has been a successful agent for SGCC’s large scale
centralized procurement. Practice has proved that the use of
professional tendering agent service can make the centralized
procurement of a big enterprise group fair, transparent,
standardized and efficient, establish a tendering platform for
standardized and fair competition, and can bring win-win result
to all relevant parties.
Thank You