Goal of training :The goal of todays training is to enhance employee quality and motivation so as to

improve productivity and meet future needs of the organization.

Objective of the training:

 Meet organization needs.

 Meet individual needs.
 Improve productivity satisfaction.
 Employees are capable of efficiently and accurately recording the new entries.
 Able to capture relevant data / time associated with particular activity

After completing this course you will be able to:

 Understand the concepts of Category Management & Strategic Sourcing

 Business and Operating model of AICC
 Understand the importance of standards and performance and conditions to performing respective
tasks.
 Begin working on the new Operating model
FL.06 Procure Materials & Services, SCM Performance – Page 1
Business Process Owner: VPSCM Systems:1 Functions:5 Processes:22 Enablers Fulfilment Processes

As-Is On Ground
Inputs Controls As-Is Proposed , Not on Ground Outputs
Govt. Statutory & Suppplier AICC Policies, Defined Procurement
Regulatory Agreements& Procedures & Authorization Matrix& On Ground, not captured in As-Is
Requirements Contracts Instructions Approvals

Recommended as per Industry Best Practice

Bill of Quantities Approved PurchaseRequisition

SP.03.01.10
FL.06.01 Manage Procurement Strategy
Supplier Quotations PurchaseOrder
FL.06.01.01

PurchaseRequisitions ManageTax
SP.03.01.12
Manage Priorities
Preferred Supplier Lists

Item Specifications FL.06.02 Manage Category Management & Strategic Sourcing Item MasterData

FL.06.02.01
Material Descriptions
Define Procurement
Strategic Category
Plan & Profile
PaymentTerms
FL.06.02.02
Define Procurement
Strategic Category Strategy
FL.06.02.03 User MasterData
Strategic Sourcing
FrameworkAgreements

Contract Templates FL.06.03 Manage Supplier Relationships Supplier Contracts

SP.03.01.11

FL.06.03.01 FL.06.03.02 FL.06.03.03 FL.06.03.04 FL.06.03.05

Account PayablesInformation
Invoices
SP.03.01.11
FL.06.03.06
Supplier Relationship Supplier Risks & Issues
RFQ
Supplier Performance
Management Supplier Qualification Supplier On-Boarding
Management Management Supplier Off Boarding
Comparative Statements
FL.06.04 Contract Management SP.03.01.11

PricingRequests eAuctions
FL.06.04.01 FL.06.04.02 SP.03.01.11
FL.06.04.03 FL.06.04.04 FL.06.04.05 FL.06.04.06
Create Contract & Enable Administer Contract :
Manage Contract: Contract Manage Contract : Price Manage Contract : Manage Manage Contract Close Out
Contract in ERP Implement Contract in ERP Goods / Service Receipt
Variation Dispute
Market Intelligence Adjustments

eCatalogues
FL.06.04.07
Manage Claims
Category Cards
SP.03.01.11

FL.06.05 Run Purchasing Activities

SP.03.01.11
Contracted Savings
FL.06.05.01 FL.06.05.02 FL.06.05.03 FL.06.05.04 FL.06.05.05
Create PR’s Execute PO Execute RFQ Execute Spot Buys Execute Return to Supplier Category Plan

Procurement SCM Dashboard

Mechanisms
MS Dynamics Procurement MSOflce Tools Auditors
Strategy
 FL.06.03 Manage Supplier Relationships
Supplier Relationship Management enables smarter sourcing and contracting, more efficient PR to
pay, easier measurement and reporting and overall more efficient supply and design collaboration
between Alayuni and their suppliers, throughout the entire materials life cycle”

Process Names :

1. FL.06.03.01Supplier Relationship Management

2. FL.06.03.02 Supplier Qualification

3. FL.06.03.03 Supplier On-Boarding

4. FL.06.03.04 Supplier Performance Management

5. FL.06.03.05 Supplier Risks & Issues Management

6. FL.06.03.06 Supplier Off Boarding

FL.06.03.01 Supplier Relationship Management
FL.06.03.01 Supplier Relationship Management

FL.06.03.01-Supplier Relationship Management – V0.6

Execute Strategic Sourcing- FL.06.02.04

Sourcing & Category Manager

FL.06.03.04
FL.06.03.02 Supplier
FL.06.03.03 On FL.06.04.01 Create 1.5.0
Supplier Performance
Boarding Supplier Agreement Manage contract
Qualification Management
Close

Execute RFQ s for Central Categories – FL.06.05.10

FL.06.03.01 Supplier Relationship Management
RACI Matrix

RACI is an acronym that stands for Responsible, Accountable, Consulted and Informed. A RACI chart is a matrix of all the
activities or decision making authorities undertaken in an organization set against all the people or roles.
FL.06.03.02 Supplier Qualification
FL.06.03.02 Supplier Qualification
FL.06.03.02-Supplier Qualification – V0.6

Execute Strategic Sourcing

FL.06.02.04

Execute PO Vendor Have

FL.06.05.02 record in ERP?
1.1.1
Yes Start Vendor
Update process
FL.06.07.02 Manage Master Data Approval
– Update Vendor Master letter
No Site visit
1.9.0 required?
Analyze inputs
Sourcing & Category SRM SME

1.1.0 and evaluate

Execute RFQ s for
Define qualification against AICC
Central Categories
requirement requirements Yes
FL.06.05.10
1.12.0
Notify Vendor
with approval

1.10.0
Complete 1.14.0
evaluation based Rejection On board supplier
on site visit letter
outcome
No
1.2.0 1.4.0
Prepare & Send Review the
Vendor questionnaire to
questionnaire Form vendor request
to Vendor form On board
Vendor Questionnaire Yes 1.13.0
Form Notify Vendor supplier
IS Supplier Data with rejection
valid? Close
1.5.0
Send for QA Review 1.7.0
NO & validity Send to finance
qualification for review
requirement
No
Yes
Category Manager

Vendor
Sourcing &

approved?
1.11.0
Review the
Yes Complete vendor
request

NO

IS Supplier Data
1.6.0 valid?
QA Review &
validity
QA

qualification
requirement

NO
IS Supplier Data
Finance

1.8.0 valid?
Validate Banking
details of New Yes
Vendors/or
update

1.3.0
Provide inputs to
Vendor

AICC qualification
questionnaire &
Vendor request
form
FL.06.03.02 Supplier Qualification
RACI Matrix

RACI is an acronym that stands for Responsible, Accountable, Consulted and Informed. A RACI chart is a
matrix of all the activities or decision making authorities undertaken in an organization set against all the
people or roles.
FL.06.03.03 Supplier On-Boarding
FL.06.03.03 Supplier On-Boarding

FL.06.03.03 Supplier On-Boarding-V0.6

IS AICC sponsor
Sourcing & Category SRM SME

Supplier Qualification delegation

- FL.06.03.02 1.1.0 required?
Review & Send the 1.2.0
request for Master Conduct supplier No
data team to create segmentation
Vendor

Yes

1.3.0
Identify sponsor
from supply chain
Purchasing team
for supplier
relationship

Is Supplier
1.4.0 scorecard
Sourcing & Category Manager

required? 1.6.0
Establish
Communicate
communication No
internally supplier
guidelines with
onboarding
supplier Close

Yes

1.5.0
Define scorecard
KPI s as per
standard supplier
performance KPI s
Master Data
Specialist

FL.06.07.02
Manage Master
Data Create Vendor
Vendor

Communication Communication KPI s

guidelines to supplier
FL.06.03.03 Supplier On-Boarding

RACI Matrix

RACI is an acronym that stands for Responsible, Accountable, Consulted and Informed. A RACI chart is a
matrix of all the activities or decision making authorities undertaken in an organization set against all the
people or roles.
FL.06.03.04 Supplier Performance Management
FL.06.03.04 Supplier Performance Management
FL.06.03.04-Supplier Performance Management – V0.6

Complaint From End-user

Requster

Performance
1.1.0 Report With action plan
Run supplier supplier performance
performance report report
in ERP

Is Supplier
Monthly performance on
1.8.0
Inform Vendor target? 1.9.0
About action plan Send performance
required (by Email report to vendor
or meeting) Close
Sourcing & Category SME

No
Action plan
Target date Due

No

1.2.0
Analysis data For
vendors
performance Yes
No Is AICC will
Continue with
Is There any Vendor ?
1.3.0 action required? Yes
Send Vendor
Performance
No FL.06.03.05
analysis Report to
Sourcing & Supplier Risks & Issues Management
Close Category Manager 1.6.0
No
Send the Action
plan to QA

1.4.0 1.9.1
Prepare action plan Off board supplier

Yes FL.06.03.06
Off boarding Vendor

Is Action plan
Sourcing &

Approved ?
Manager
Category

1.5.0
Review And
approve Action plan
Performance analysis Report

1.7.0
Review And
QA

prepare evaluation
report
FL.06.03.03 Supplier On-Boarding

RACI Matrix

RACI is an acronym that stands for Responsible, Accountable, Consulted and Informed. A RACI chart is a
matrix of all the activities or decision making authorities undertaken in an organization set against all the
people or roles.
FL.06.03.05 Supplier Risks & Issues Management
FL.06.03.05 Supplier Risks & Issues Management

FL.06.03.05 -Manage Supplier Risks & Issues Management – V0.6

FL.06.03.04
Supplier Performance Management Mitigation plan
Sourcing & Category SME

Mitigation plan

1.4.0
1.1.0
1.2.0 1.3.0 Communicate risk 1.8.0 1.9.0
Identify potential
Evaluate risk and Define risk mitigation plan to Execute & monitor Update Supplier
risk or issues with
impact mitigation plan Procurement mitigation plan Performance report
supplier
coordinator Close
Procurement
Coordinator

1.5.0
Project

Implement risk
mitigation Action
plan
Internal User / Project Manager

1.6.0 Yes
Evaluate the result
of risk mitigation
Action plan
1.7.0
Off board supplier
Is Mitigation Off Board-Supplier
plan Successful
?

No
FL.06.03.05 Supplier Risks & Issues Management

RACI Matrix

RACI is an acronym that stands for Responsible, Accountable, Consulted and Informed. A RACI chart is a
matrix of all the activities or decision making authorities undertaken in an organization set against all the
people or roles.
FL.06.03.06 Supplier Off Boarding
FL.06.03.06 Supplier Off Boarding
FL.06.03.06-Off Boarding Supplier – V0.6

FL.06.03.04 Impact low? FL.06.03.04

-Supplier Performance Management Supplier performance management
1.1.0 1.2.0 1.3.0 1.4.0
Define off boarding Asses off boarding FL.06.04.08 Supplier risk & No
reasons impact Manage disputes issue management
Sourcing & Category SME

Yes

No

Is Supplier has 1.7.0

more than one Communicate
agreement in Vendor off boarding
Close Out agreement process FL.06.04.05 Administer Agreement internally and to
FL.06.03.11 supplier
No Supplier off board
Yes notification (Vendor-Internal requster)
1.5.0
Fill and send
request form to
block supplier
Yes
record in ERP

Block request
Sourcing & Category

approve ?

1.6.0
Manager

Review the block

request and
approve

FL.06.07.02Manage Master
Master Data
Specialist

Data Block Vendor

1.8.0
Start Block Vendor
Process in ERP
FL.06.03.05 Supplier Risks & Issues Management

RACI Matrix

RACI is an acronym that stands for Responsible, Accountable, Consulted and Informed. A RACI chart is a
matrix of all the activities or decision making authorities undertaken in an organization set against all the
people or roles.
FL.06.03 Manage Supplier Relationships

CTQ

A critical to quality (CTQ) is the flowchart process of identifying quality features or characteristics in regard to the
customer and to identify the problems. This is the process of analyzing the inputs and outputs and find out the path
that influence the standard or quality of process outputs.
Manage Supplier Relationships

Need Driver Critical to Quality

Supplier Qualification to be completed on time

Supplier Qualification to be completed accurately

Supplier Relationship
Agreement/Contract to be completed on time
Management
Agreement/Contract to be completed accurately
Supplier performance Management to be finished on time
Supplier performance Management to be finished
accurately.

To Prepare and send vendor questionnaire form to

supplier on time
Supplier Qualification To notify vendor with Approval on time
To notify vendor with Rejection on time
Manage Supplier
To define scorecard KPI on time
Relationships
To define scorecard KPI accurately
Supplier On-Boarding
Supplier on boarding on time
Supplier on boarding accurately.

Supplier Performance Prperation of Performance report on time

Management Prperation of Performance report accurately

Supplier Risks & Issues Communication & Implementing Risk

Management mitigation plan on time

Supplier Off Board Request on time

Supplier Off Boarding
Supplier Off Board Request accurately
Thanks