e-Procurement Supplier Awareness Session

1. e-ProcurementSupplierAwareness Session

2. AGENDA • Opening and Introduction Sagran Naicker • Overview & Procurement at PetroSAComfort Bunting • Business Processes Comfort Bunting • Demonstrations Sagran Naicker / Mluleki Ntlemeza Christina Meyer / Alan Goodway • Q&A & Closing ALL

3. Give an overview of the procurement process at PetroSA 1 • Give an overview of the electronic procurement process at PetroSA 2 • Understand the applicable laws and legislation governing procurement at PetroSA 3 4 • Common understanding of Supplier’s, User’s and Procurement’s requirements OBJECTIVES OF THIS DISCUSSION Aligned Suppliers, Users and Procurement community

4. PROCUREMENT PHILOSOPHY

5. PetroSA’S POLICY INSTRUMENTS AND PROCEDURES ARE ALIGNED WITH RELEVANT LEGISLATION PetroSA policy and procedures National legislation / policy • BBBEE • Procurement • Employment Equity • Skills development • Corporate Social Investment • Supplier development • Constitution of SA • PFMA • BBBEE Act, 2003 • PAJA • The Employment Equity Act • The Skills Development Act • Preferential Procurement Policy Framework Act • Codes of Good Practice for BBBEE • Liquid Fuels Industry Charter • NIPP/CSDP Aligned policies and procedures

6. PROCUREMENT AT PetroSA Where do we advertise? PetroSA advertises tenders/quotations for goods and services on the internet (www.petrosa.co.za or www.procurement.petrosa.com) or in addition, in the printed media, the Government Tender Bulletin (www.info.gov.za/documents/tenders/bulletins.htm ), SASDA (www.sasda.co.za), Quantum How do we select? Through our auction, quotation and tender process

7. EVALUATION OF TENDERS

8. WHAT DO SUPPLIERS NEED IN ORDER TO SUPPLY GOODS & SERVICES TO PetroSA? • You need a purchase ordergenerated on the SAP system. This document can only be obtained from the Group Supply Chain (Procurement) Department • You need a written contract signed by the CEO, CFO or duly authorised VP. No other employee of PetroSA is authorised to sign a contract on behalf of PetroSA • Employees (irrespective of level within the organisation) are not empowered to instruct a Supplier to provide goods or services without any of the above documents.

9. BEE COMPONENTS Conducive Environment Skills Dev / Capacity Bld Employment Equity Preferential Procurement Equity Participation Financial and Other Support Supplier Development Corporate Social Investment Implementation, Evaluation, Monitoring and Communication

10. Mail Procurement e’Procurement e’Mail WHAT IS e-PROCUREMENT? • e-Procurement is to Procurement what eMail is to Mail and is simply the business-to-business purchase of supplies and services using the Internet • e-Procurement and eMail share the following benefits: Automation and simplification, Reduced cycle times leading to increased productivity, improved tracking and transparency

11. BENEFITS of e-PROCUREMENT Generic PetroSA Compliance benefits - arising from increased use of approved suppliers with whom we have negotiated advantageous contracts Transaction benefits - arising from reductions in the cost of processing manual procurement transactions Information benefits - additional negotiating power derived from better procurement information, and identification of opportunities to consolidate spend across business units and streams Transferred supplier benefits - price reductions offered by suppliers because of increased efficiencies and higher volumes Project benefit - price reductions in construction contracts etc derived from contractors' use of the client’s enhanced spending power Web-powered sourcing savings - arising from internet capabilities such as reverse auctions • Savings derived from driving delivered pricing down – estimated at ± 5%pa • Improved and reduced turnaround times • Standardised approved tender documents • Standardised procurement processes, and filing system • Improved transparency • Reduction of transgressions & possible corruption • Automation of tender processes • Electronic evaluations and auto calculations of scoring • Up to date supplier database withcorrect categorisation • Up to date market information/intelligence (management reporting)

12. Benefits of e-Procurement for Suppliers Generic Benefits • e-Procurement provides suppliers of all sizes access to opportunities at PetroSA • ability to receive standardized electronic orders • manage complex bidding opportunities • migrate customer service functions online • reducing the overall cost of sales • reduces much of the manual work associated with offline processes and paper-based orders • freeing sales representatives to spend more time building valuable relationships with their customers • reduce tendering turn around times Practical Benefits

13. Benefits of e-Procurement for Suppliers Practical Benefits • Various mechanisms to submit responses, lowering risk of loss of information • Warning signals if vital information has not been entered, making sure that critical information required by PetroSA is not overlooked. • No need to submit tax clearance certificates, BEE certificate and registration questionnaires with every tender • Manage own details • No pressure to read newspapers for upcoming tenders • Supplier is allowed to respond, or re-submit responses as often as is necessary until the closing date and time of the tender / contract amendment. • More structured tenders / contract amendments making it more understandable • Historic, electronic data of previous tenders and / or contract amendments • Less time and manpower required to respond to tenders / contract amendments • Improved efficiency • Reduced costs • Sustainable competitiveness

14. What Does This Mean for Suppliers?

15. e-Procurement – Business processes • supplier registration • updating supplier information • Auctions • quotations • Tendering • eRS • uploading attachments / documents

16. Supplier Registration Process http://www.procurement.petrosa.com/

17. Supplier Registration Process

18. Supplier Registration Process 5 screens to fill in Registration phase 1

19. Supplier Registration Process

20. Supplier Registration Process

21. Supplier Registration Process Registration phase 2 Fill in all screens

22. Supplier Registration Process Updating your information

23. Supplier Registration Process Updating your information

24. Supplier Registration Process Updating your information Fill in all screens

25. Supplier Accreditation Process

26. The e-Procurement Process

27. The Process – Continued (ISS)

28. The Process – Continued (ISS)

29. The Process – Continued (ISS)

30. The Process – Continued (ISS)

31. Accessing Tenders / Quotations / Auctions http://www.procurement.petrosa.com/

32. Accessing Tenders / Quotations / Auctions

33. Quotations • Supplier submits quotations • Submit the quotation online or • Download the eRS package, completes quotation, then submit later For online quotation select item number

34. Quotations Supplier submits quotations

35. Quotations Supplier submits quotations

36. Quotations Supplier submits quotations Repeat the process for all line items

37. Quotations Uploading Documents / Attachments

38. Quotations Uploading Documents / Attachments

39. Quotations Uploading Documents / Attachments

40. Quotations Uploading Documents / Attachments

41. Quotations Uploading Documents / Attachments

42. Quotations Supplier submits quotations

43. Tenders The Supplier clicks on My Tenders Select tender

44. Tenders • Supplier submits tenders • Submit the tender online or • Download the eRS package, fill in tender, then submit later For online tender select item number

45. Tenders Supplier submits tender

46. Tenders Supplier submits tender

47. Tenders Supplier submits tenders Repeat the process for all line items

48. Tenders Uploading Documents / Attachments

49. Tenders Uploading Documents / Attachments

50. Tenders Uploading Documents / Attachments