PowerPoint Presentation

[Audio] We will provide an overview of the Procurement Process in PaxOcean Shipyard. Items needed by the shipyard are for different purposes and are categorized under different Cost Categories such as; Capex Conversion Cost Center New Build, Ship Repairs and Stock Items. An item can be either a Material or a Service. A PR (Purchase Requisition) is raised by a Requestor in S A P and is assigned to a Buyer by the Requestor. Each Buyer has a Code Number in S A P The Buyer who is responsible for the PR would have to send out R-F-Q for the item/s required. Generally three quotes are required for items without any Framework Agreement or Contract. Once three quotations are received the Buyer would then send the Prices Specifications and Lead Time comparison to the Requestor who would then select and confirm his choice. Upon receiving the confirmation from the Requestor the Buyer would proceed to generate the P O (Purchase Order) for approvals by relevant Parties including the Procurement Manager the Yard Director and/or the C-E-O depending on the F A L. In Shipyard Business especially for Ship Repairs it is critical for processing time from PR to P O to Items Delivery to be within the duration of the Ship's Docking Period. Our Dashboard provides good visibility for the Buyers the Requestors and the Managers to manage effectively and efficiently the Procurement Process from PR to Item Delivery. The source of truth is from S A P and data extracted are displayed real-time to every stakeholder..

[Audio] Our team has successfully reduced outstanding procurement requests (PRs) for almost all categories significantly. This was achieved through the use of the dashboard to manage the procurement process. As shown in the table PRs for ship repairs were reduced by 78% while substantial reductions were also achieved for conversion new build and cost center. The reduction for stock items was less, due to lengthier process including assessments and discussions before vendors could provide relevant quotations. The chart illustrates the progress made in reducing outstanding PRs for each category. Our team is proud of their efforts in managing the procurement process more effectively now. We will continue to make improvement and reduce outstanding PRs for all categories..

[Audio]The following chart shows the efficiency of PRs conversion into P.Os. For Ship Repairs PRs it is critical to have them converted to P.O s as soon as possible. We have initially set the target for PRs to be converted to P.Os to be within 7 days. Total outstanding PRs not converted to P.Os in March stood at 202 (out of a total of 305 PRs). This number has reduced to just 16 in July an improvement of over 90%. Numbers for Conversion New Build Cost Center have all improved except for Stock Items which reasons we have provided in the last slide..

[Audio] This chart shows the improvement in PRs that is within 7 days in the system. This number has improved significantly from 33.77% to 77.14%. Meaning that the outstanding PRs that are over 7 days has been reduced to just approximately 23%. Our target is to have Ship Building PRs within 7 days to reached 90%. The final target should be closer to 100%.

[Audio] This chart shows the improvement in average days in which PRs are opened. The number of days opened has reduced from 33.04 to 8.85 days. The target is to be within 7 days.

[Audio] The Dashboard is user friendly, and it can provide clear, updated information at different layers.