Procurement

Procurement

Procurement plays a pivotal role in ensuring availability of materials and services required for running the company's operations smoothly and efficiently, in compliance with all regulatory requirements. To ensure transparency in the procurement process, Procurement department has taken the lead in Pakistan to introduce a state-of-the-art 'e-procurement' system, which is in line with the PPRA's Rules.

Warehouse managed by Procurement at Karachi

The department is responsible for ensuring the following: 

  1. Fit for purpose materials are purchased and delivered to the users timely. 
  2. Contracts are in place for services required to run the Company's operations.
  3. Procurement process is in line with the Public Procurement Regulatory Authority (PPRA) Rules 2004, the Company's approved Procurement manual(s)/SOPs, other applicable environmental laws, rules & regulations, and the industry's best practices. 
  4. Best' value for money' is achieved. 
  5. Place better internal control systems to avoid the risk of fraud. 
  6. The process is ethical, efficient, auditable, and transparent.
  7. Pakistan Petroleum Limited (PPL) code of conduct and policies are followed. 
  8. Custom laws and State Bank of Pakistan regulations are followed for imports and foreign payments.
  9. Safe and secure logistics, handling, and storage of the materials as per the guidelines of the manufacturers

The following areas come within the purview of Procurement Department: 

•    Procurement of Materials & Services
•    Import / Export Shipping, Clearance, and Logistics, etc.
•    Inventory Management / Warehousing. 

Procurement of Material & Services

All procurements are made in line with the Public Procurement Regulatory Authority (PPRA) Rules 2004. To ensure transparency in the procurement process, Procurement department has taken the lead in Pakistan to introduce a state-of-the-art 'e-procurement' system, which is in line with the PPRA's Rules. This has led to a 'paradigm shift' from paper-based bidding to online bidding process, where all bid clarifications, evaluations, and subsequent management approvals are carried out electronically. 

Inventory & Warehouse Management

Procurement Department carries out inventory management and planning to ensure optimum inventory stock to be maintained for running smooth operations. It is responsible for managing all field-based warehouses where the material is received, inspected, and properly stacked. Enterprise Resource Planning (ERP) 'SAP' and 'Material Master Data Management' (MMDM) software are implemented for effective material management. 

Import/ Export Shipment, Clearance, and Logistics

The department arranges import / export of equipment/ machinery/ spares in coordination with relevant stakeholders, including government authorities such as Customs and State Bank and others while ensuring cost-effective and timely processing of such cases to meet the Company's objectives. Materials are received from the vendors at the central store or warehouse of PPL, Karachi, and delivered to the desired locations by a fleet of transportation contractors in a safe and secure condition.