The Procurement Execution Plan should spell out the objectives of the Procurement function to provide value for money, quality and delivery of equipment and material to meet a Project’s objective.

This should include procurement strategies and procurement procedures for use and implementation by the Project and the procurement organisation.  This including purchasing, expediting, supplier quality surveillance, transportation and logistics.

The plan should also include consideration for procurement and material management systems, management of interfaces to project control systems, status reporting of purchasing, expediting and inspection activities, logistics of the equipment and material from delivery points to the jobsites, site and module fabrication, warehousing and provision of spare parts and commissioning spares.

MMG can assist with the review of your Procurement Execution Plan and tailor TracBASE to assist with any Project equipment and material tracking and reporting requirements.

The Material Responsibility Matrix is a process to define the detailed plan for a Project for specifying, sourcing, acquiring, issuing, expediting, inspection, receiving and installing Project equipment and material.

The responsibility matrix is a visible way to show who’s doing what. It makes it easy to understand who to speak to about various tasks and who to share relevant information with. It also promotes accountability, as it’s clear to everyone where things are progressing, or where they are getting stuck.

The Material Responsibility Matrix is usually completed in conjunction with the Procurement Roles and Responsibilities matrix (also known as Procurement RACI matrix) which describes the various roles and responsibilities between the Contractor and the Client procurement function, in the development and administration of procurement for the Project.

Both the Material Responsibility Matrix and the RACI matrix should be included in the Procurement Execution Plan and are required on mid to larger tier projects.

The Procurement Status Report is a complete listing of all equipment and material to be procured for a Project, including status (milestones) of the procurement process (bid, evaluate & award etc).  

The Procurement Status Report contains critical information about all procurement orders to keep the relevant team members informed of the supply chain status. This allows Project team to plan activities based on the best knowledge of when equipment and material will be ready. If any delays are envisaged, it allows alternative arrangements.

MMG can apply TracBASE to provide a Project specific Procurement Status Report.

The purpose of the Instruction is to provide instructions for packing, marking of goods and shipping instructions for Project equipment and material.

The Instruction includes details for packaging, lifting and handling requirements. protection and preservation, cleaning, provisions for small parts, spare parts and special tools, heavy lifts and over dimensional cargo, marking, hazardous goods, authorization for shipment and shipping documentation and more.

The instruction should be considered as the minimum standard for the manufacturing of suitable packaging solutions when shipping goods by any means of transport for a Project.

This instruction generally forms an integral part of a Project Purchase Order or Contract.

Suppliers are expected to comply with the instruction and provide all necessary documentation for release of goods and transport into Australia, with full customs & quarantine compliance (managed by the appointed Project freight forwarder).

MMG can assist with the preparation or review of the Instruction in conjunction with the Project Freight Forwarder or 3PL.

MMG can apply TracBASE to track & report on shipping documentation milestones.

Freight incoterms (International Commercial Terms) are the standard terms used in sales contracts for importing and exporting.

They are used to define responsibility and liability for goods over the course of a shipment (responsibility for the goods transfer from the supplier to the byer).

They also define who pays which costs for the goods and their transport. They ensure timely payment of goods, services, and duties, while protecting suppliers, carriers, and buyers.

Projects often use Incoterm FCA.

Most incoterms can be used for any mode of transport however there are exceptions for sea freight only, and commonly used incoterms for air freight.

Check out this quick reference of Incoterms and the breakdown of who is responsible for what, at various points in the international supply chain