Material Supplier Guide - Petro Rabigh - Home Electronic Goods Received ERS Evaluated Receipt...

Version 1.13 (Jan.2017) 1 | P a g e

Supplier Relations Materials Supply Department Petro Rabigh Company

Material Supplier Guide



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



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 Bidding and Awarding Mission and Vision Relationship

Delivery Packaging Payments Contact Us Appendices

Acronyms/Definitions

Acronym Definition

BCD Bid Closing Date

E-GR Electronic Goods Received

ERS Evaluated Receipt Settlement

GI Goods Issued

GOSI General Organization for Social Insurance

GRN Goods Received Note

GR Goods Receipt

ISO International Organization for Standardization

KPI Key Performance Indicator

MRO Maintenance, Repairs, and Operations

MSDS Material Safety Data Sheet

MSG Material Service Group

OHSAS Occupational Health and Safety Assessment Series

PA Purchase Agreement

PO Purchase Order

PPE Personal protection equipment

PRC Petro Rabigh Company

RFQ Request for Quotation

SAGIA Saudi Arabia General Investment Authority

SASO Saudi Standards, Quality and Metrology Organization

SES Service Entry Sheet

SRU Supplier Relations Unit





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.”





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



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





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



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)





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 Sub Category (KPI) Weight

Delivery EX-Work-PO date versus Pick Up date 30%

Quantity Reliability GR Quantity is equal to or greater than the order quantity 30%

Price Payments and price change terms, discounts 20%

Quality GR return in the system or Rejection Percentage 20%





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.

mailto:[email protected]


Version 1.13 (Jan.2017) 10 | P a g e




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.

Version 1.13 (Jan.2017) 11 | P a g e




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]


Version 1.13 (Jan.2017) 12 | P a g e




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.

Version 1.13 (Jan.2017) 13 | P a g e




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.


Version 1.13 (Jan.2017) 14 | P a g e




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

Version 1.13 (Jan.2017) 15 | P a g e




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

Section).

Version 1.13 (Jan.2017) 16 | P a g e




Supplier Relations

Procurement Logistics Finance Supplier Relations

Contact Information

Contact Purpose Telephone/Fax/Email

Supplier Relations

Manufacturers: - Manufacturer registration (Local & Overseas) - Manufacturer inquiries Vendors: - Vendor registration (Local & Overseas) - Vendor Inquiries

T: (012) 425-8633 F: (012) 425-1978 [email protected] T: (012) 425-8633 F: (012) 425-1978 [email protected]

Supplier Relations

Supplier Development: - Supplier inquiries - Temporary access for supplier visit Supplier Inquiries: - Issues, Concerns, and Complains

T: (012) 425-8902 F: (012) 425-1978 [email protected] T: (012) 425-8921 [email protected]

Purchasing

MRO - Spare parts procurement inquiries Chemicals - Chemical procurement inquiries

T: (012) 425-8318 F: (012) 425-1978 [email protected] T: (012) 425-8910 [email protected] T: (012) 425-8914 [email protected] T: (012) 425-9457 [email protected]

Logistics

PRC Logistics - Logistics inquiries DHL - 3PL forwarder inquiries

T: (012) 425-8567 [email protected] T: (012) 616-5685 Ext. 2021 F: (012) 616-5829 [email protected]

Finance

- Invoice submission - Invoice follow-up - Payment follow-up

F: (012) 425-8615 [email protected] T: (012) 425-8406 [email protected] T: (012) 425-8616 [email protected]

Registration

Update

Linkage

RFQ

Quotation

PO

Pick-up

Delivery

Shipping

Customs Clearance

Invoices

Payment

Issues

Concerns








Version 1.13 (Jan.2017) 17 | P a g e




Appendices

(Appendix A)

(Appendix A.1)

Material Supplier Guide - Petro Rabigh - Home Electronic Goods Received ERS Evaluated Receipt...

Documents

Transcript of Material Supplier Guide - Petro Rabigh - Home Electronic Goods Received ERS Evaluated Receipt...