Operational Practices
Procurement, supplier management, shipping, and maintenance
Procurement & Supplier Management
Effective procurement involves managing supplier relationships, maintaining contracts, and optimizing costs while ensuring quality.
Supplier Requirements:
- • Provide official catalogs and price books
- • Maintain clear financial terms
- • Submit performance records regularly
- • Honor contract renewal clauses
Supplier Contracts
A supplier contract is a written agreement outlining terms of supply, payment, delivery, and renewal conditions.
Contract Management Essentials:
- • Maintain written contract for each supplier
- • Include specific payment terms and conditions
- • Document delivery schedules and penalties
- • Store contracts in a central repository
- • Review and adjust annually as needed
Cost Reduction Strategies
Consolidate Vehicle Fleet
Reduce vehicles to optimize operations
Expected Benefit: Lower fuel, maintenance, and depreciation costs
Merge Office Spaces
Use a single office instead of multiple locations
Expected Benefit: Decrease rent, utilities, and cleaning expenses
Digitize Documents
Store contracts and records online
Expected Benefit: Cut paper, printing, and storage costs
Shipping & Cost Calculation
Shipping costs depend on origin, destination, commodity type, and pricing unit (tonnage vs. container).
Key Considerations:
- • Origin point (e.g., Port of Alexandria)
- • Destination zone
- • Commodity type and weight
- • Pricing unit (tonnage or container)
- • Additional service fees
Maintenance & Inspection Schedules
Daily
Check equipment that is always in use
Monthly
Routine inspections of critical systems (water, electricity, vehicles)
Annually
Comprehensive audit of all systems and sustainability measures