Trading House as a Procurement Channel
TTS sourcing is a procurement channel where a 3rd Party is utilized to purchase low risk, very low value (<$100K) goods and services from many different small suppliers. A TTS sourcing will source from many distributors, suppliers and, in some cases, manufacturers and offer a broad range of materials and services to the customer. A TTS sourcing should charge a “fee” for their “services” and would pass through the cost of the material and/or service “at cost”. Transparency on the cost of the material and/or service sourced is vital.
TTS sourcing is integrated with our customers. We strive to always bring you the finest service and professionalism every time. TTS delivers benefits across your businesses, CP and Fin Ops by reducing the number of suppliers dealt with directly, eliminating manual processes. We ensure the most efficient, simplified, standardized and automated procurement process for low risk spend (<$100K) is applied while balancing supply and demand for CP resources. We reduce end to end costs and secure value improvement for your business by leveraging the TTS sourcing expertise and purchasing volume. Finally, TTS manages risk, ensures compliance, protects you company reputation and enables local content (from 1st and 2nd tier suppliers).
Some benefits of sourcing through TTS are:
- Reduced work time for our customers
- Enables large corporations to work alongside smaller companies with efficiency
- Reduced transaction cost for our customers
- bridges gaps in the terms and conditions for our customers
- reduces supplier could for our customers
- increases the speed of purchasing for turnaround purchasing needs
Purchase Order and Contract Scope
The TTS sourcing vendor will forward (via email) all purchase order requests over $100,000 to the CP Focal. If the purchase order does not meet the approved TTS Sourcing criteria, the CP Focal or TTS Sourcing PM will contact the requestor to advise him/her that the material or service cannot be procured through the TTS Sourcing. If the material has been signed off by the applicable category manager, then the CP focal or TTS sourcing PM will further approve. The CP focal or TTS sourcing PM will then advise the TTS sourcing vendor (via email) of the approval or rejection of the purchase order.
The general scope of this agreement shall be for TTS to perform as a primary TTS Sourcing for minor services (and relevant materials only) by facilitating transactions between company and vendors, mainly original equipment manufacturers (OEMs), for the provision of service engineers on a call off basis.
International and Local Vendor Policy
For local vendors, TTS will:
- Provide sourcing services for Engineering Services, Catalyst and Chemicals, Maintenance & Turnaround and Corporate teams. This contract shall only be used for QSGTL
- Arrange for transportation of Vendor personnel from Vendor Premises to Worksite
- Coordinate with Company focal point to book induction dates for Vendor personnel at Worksite. Arrange for gate passes if required.
- Coordinate payment and close-out with Vendor
For international vendors, TTS will:
- Coordinate with Vendor on date of arrival to Doha to mobilize on Worksite ready for work (all related transportation of Vendor Personnel and Vendor Items included)
- Arrange for business visas for Vendor Personnel when and if required by Vendor.
- Arrange for RLIC passes
- Arrange flights and accommodation in Company-approved hotels for Vendor Personnel
Trading House Process Outline and Benefits Summary
Trading house through TTS generally:
- Saves 10-80% on direct costs associated with inhouse execution of procurement and spot sourcing
- Enables risk free, easy and fast deployment of low frequency purchases of goods and services (24 hour service level is typical)
- Commonly used with low risk low value contracts
- When used for medium – high risk contracts, additional diligence provided to ensure a safe and cost effective solution is built (i.e. – engineering review, HSSE risk evaluation etc.)
- Typical Thresholds are:
- Up to 5 k USD for single sourcing – (Flat Fee, lower %)
- 50 k USD including mark-up for competitive sourcing (OEM included)
- Business end users will ensure proper transaction control is used in order to authorize payments.
- TTS’s focal point: account specific sourcing professionals with back up 24/7, ideal for shut down, major maintenance and turn around support.