ENGIE Fabricom Management of the Procurement Process
Our Procurement Department works to ensure that all goods and services procured from any external source are appropriate, that they are the best possible value, and that they meet all of the needs of the business in terms of quality, quantity, time and location.
The tasks involved in establishing the necessary requirements are the sourcing activities such as market research, vendor evaluation and the successful negotiation of contracts.
Define the Scope of Work/Requirement
The Scope of Works, once defined, specifies the exact requirements of the goods and/or services to be provided by the supplier and will contain as a minimum the following information:
- Agreed deliverables (including precise specification)
- Specified milestones
- Timeline for deliverables
Development of the Procurement Plan
The Procurement Plan is developed in a manner which defines the deliverables expected to be provided by the supplier. Included in the Procurement Plan are all scheduled dates for the delivery and completion of the goods and/or services.
Supplier Selection and Evaluation
Depending upon the scale of the project, there is generally a wide range of suitable suppliers available, along with several means of researching the selection. Once the exact scope of work has been established and all suitable Suppliers have been chosen, the evaluation process will be undertaken to determine their suitability.
The evaluation process involves the submission of a formal Pre-Qualification Questionnaire (PQQ) and a comprehensive Invitation to Tender (ITT) process. Specific and often bespoke criteria for comparing different suppliers forms a critical part of the supplier evaluation process, which is monitored and strictly adhered to throughout. All tender submissions are reviewed, assessed and scored using key points as identified in the scope of work. A suitability matrix is completed during the assessment stage of the supplier review, this matrix, once complete, is interrogated to measure and substantiate the suitability of individual suppliers.
Contract Negotiation and Award
Once the suppliers have been shortlisted using the evaluation process, detailed negotiations are undertaken. These negotiations are not carried out on price alone; all aspects are taken into account in terms of total cost of delivery and supplier ownership.
At this point in the selection process, immediately prior to contract award, careful consideration is given to the method by which the goods or services will be approved and ordered; how they will be expedited and delivered; which terms and conditions will be applied to the contract, specifically the agreement of milestone payments etc.; and how the invoice process will be agreed and controlled.
Implementation and Control
It is imperative that no goods or services are ordered until the contract has been agreed and signed by all acting parties. The nominated supplier should be added to the Approved Supplier List and a specific supplier account created. The Procurement Plan should be implemented and the requirements should be clearly communicated and understood by all parties. Regular contract review meetings are to be held recurrently to ensure compliance.