1. Initiating Equipment PRs using ERP Process & Common Mistakes Dr. Khaled Al-Athel Director, Lab Technical Support Office

2. Overview LTSO Overview LTSO Services Equipment PRs using ERP Process for PRs through Bids

3. LTSO Objectives LTSO should provide a wide range of services to university laboratories that includes, but not limited to: Survey of vendors Help in writing technical specifications Technical analysis of bids Maintenance, Repairs and calibrations Training on equipment Chemicals and materials procurement etc…

4. Stakeholders Lab Technical Support Office Academic Departments Vendors Environment, Health & Safety Research Institutes Deanship of Research Purchasing Storehouse

5. LTSO Structure Lab Technical Support Office -Director- Assistant Director Lab Technical Support Office -Director- Assistant Director Chemicals & Gas Cylinders Equipment (Purchasing) Lab Structures & Equipment Purchasing Tracking POs Review Waste Handling Maintenance & Repairs Equipment Training Bids Analysis Latest Tech. Lab Refurbishing & Establishment

6. Equipment PRs using ERP Choose correct stock number that fits your requirement If no stock number matches your item  Request storehouse to generate a new stock number Make a separate line for each service required with the equipment (Installation, Training, Calibration, etc.) Create separate lines for each additional taggable accessories, kits, etc.

7. Equipment PRs using ERP For services, use “Technical Data1 & Data2” with your service requirements (Ex: On-site training, training at manufacturer, etc.)

8. Equipment PRs using ERP If the four fields are not enough to cover all specifications  prepare detailed specifications in word format DO NOT include any internal information (internal approvals, signatures, memes, prices, web links, or catalogs) Any internal information like MEMO, planning committee approval etc. should be attached to internal category only. (Not to supplier) Specifications should be attached to supplier category (not to buyer) Specifications should be prepared by the end user/originator, any quotation attached as specs will lead to cancellation of the PR.

9. Equipment PRs using ERP Providing 1-3 suppliers to the Buyer could expedite your process Buyer might contact other companies & get different quotations

10. Equipment PRs using ERP Need-by date should be minimum 3 months after initiation of PR Department name should be changed from “Dhahran” to proponents department/center

11. Equipment PRs using ERP Department cost center must be added in the charge account For RI & DSR projects, fill the charge account & other information

12. Equipment PRs using ERP Justification should be clear why proponent wants to buy this equipment, not on the use of it It is important to understand the difference between the notes

13. Equipment PRs using ERP Equipment is for teaching or research? If research, mention the project number Is this a new equipment, replacement of an existing equipment, or an integration with an existing equipment

14. Equipment PRs using ERP Notes to Buyer, Receiver, & Supplier should not include any technical specification If you need to give site information & other environmental information, use Note To Supplier

15. Request for Quotations (RFQ) Once RFQ is created and published for suppliers to quote  Proponent can use “online discussion” message to provide any clarifications to supplier or buyer Online discussion should no be used to add new requirements or change the specifications It is the proponent’s responsibility to check online discussion messages regularly and provide the feedback

16. Recommendation of Supplier (Award) Once RFQ is closed, purchasing department will send you a notification to proponent make the recommendation of supplier within two weeks Recommendation is done through i-Procurement Sourcing Home Page Recommended supplier should be the lowest bidder that matches the PR requirements/specifications (government regulations) Note to approver: provide justification of recommended supplier and reason for rejecting others If the lowest bidder is rejected, proponent must clarify the reason for rejection Once recommendation is submitted for approval, proponent can track the status from “View Award Approval History”

17. Delivery of PO Supplier should deliver the PO to storehouse Storehouse will receive the material/equipment in the system and forward it to end user Note: Any PO directly received by the proponent or the department/center from supplier is not acceptable and illegal Proponent has to accept the material/equipment of the issued PO once delivered Any changes with new or additional requirements are not acceptable and illegal

18. Example 1 Certificate must be in the original requirements Supplier with lowest quotation should be requested to clarify if the calibration certificate is included

19. Example 2 No justification was written in this case

20. Example 3 Proponent requested 32 items with estimated cost of SAR 6,000/each Total estimated cost = SAR 192,000 Proponent awarded a supplier with a quotation of SAR 300,000 Any equipment/item > SAR 300,000 must be directed to Contracts department to acquire through tenders

21. Steps to Announce a Tender Equipment coast > SAR 300,000 A PO must be created and approved in ERP A sealed envelope with the estimated cost must be sent to Chairman, Bids & Tenders Committee with PO number Tenders name Department name Specifications must be written and information according to a checklist form Specifications must be translated into Arabic (in addition to the English specs) Email checklist and specs to contracts department to prepare the tender

22. Summary Review/feedback on purchase orders Review/feedback on bids analysis Contact vendors for faculty members & researchers Equipment specification Quotations Any technical support for laboratories and equipment www.kfupm.edu.sa/sites/LTSO Email: LTSO@kfupm.edu.saLTSO@kfupm.edu.sa Phone (Directors): 8831 (Director), 8833 (Assist.) Phone (Scientists & Eng.): 7838, 8384, 8759

23. Thank you