INSIDE PEMEX’s INTERNATIONAL PROCUREMENT
Who is PPI? A U.S.A. Corporation wholly owned by Petróleos Mexicanos (“PEMEX”), with the main purpose of satisfying International Procurement Services to PEMEX Group. Operating since November 1994 Incorporated in Delaware Authorized to do Business in Texas
PEMEX: Organization Board of Directors President & CEO Corporate Chief Information Chief Financial Chief Legal Technologies & Chief Operating Chief Administration Officer Officer Business Processes Officer Officer Officer Subsidiaries Affiliates Pemex Affiliates (46)
Business Model Strategic Planning Strategic projects - QMS - Research & Development - Business intelligence Business Partners Business Partners Customer Supplier • • Market research Supplier directory and evaluation • • Customer service Contract negotiation • • Purchasing Contract administration • • Public tenders Contract compliance • • Restricted tenders New contracting schemes • Direct assignments Operation Support Legal advice – IT - HR – Accounting – Treasury – Logistics
Legal Framework Our services are designed to comply with the legal and regulatory framework applicable to PEMEX Group. Allows OEM/OSP to implement any commercial scheme, including the participation of Mexican entities Allows PPI to act on behalf of PEMEX Group for contracting with international companies PPI operates under service contracts with PEMEX Group.
Our Role PPI acts as a facilitator, an agent for a fully disclosed principal – PEMEX Group - by contributing with comprehensive management solutions for the supply chain of imported goods and services. • Purchase for itself PPI does • Take title of the goods not: • Mark-up • Resell • Directly or, The buyer is PEMEX Group • Through PPI, on behalf of operating: PEMEX Group.
Decision Process PEMEX defines PPI advices a Purchase is executed requirements procurement execution • Technically identifies and • Upon PEMEX’s request • International defines procurement PPI: Public Tender. requirements • Performs a market • If a Framework • Restricted Tenders. research Agreement is not in place, a request for PPI’s opinion is released and eventually • Validates • Direct Assignment. implemented commercialization channels • Framework • If a Framework Agreement is in place, a Agreement PO is issued (Blanket or/and supply order) Blanket Order Supply Order • A minimum and a maximum amount to be The supply order specifically defines: purchased is predefined for a specific period of time • Products/quantities required • PEMEX Group is committed to buy at least • Date of delivery or completion the minimum amount
Framework Agreement Evolution 1.- Spare Parts 2.- Services 3.- Goods and Services 5.- Consumables 4.- Public Works Services 7.- Process Technology Licensing and 6.- Information Technologies Engineering
New commercial initiatives Early Procurement Process Reverse Bids JIT Strategic Inventory Joint Proposal •
Operating Benefits For PEMEX For Supplier PEMEX Group uses a single Centralization of administrative, procurement channe l via ERP contractual follow-up and compliance Standard delivery, monitoring and compliance process Flexibility to use delivery terms that fit all parties’ needs Reduction in inspection, freight, insurance, and customs costs Expertise on PEMEX ´ s contracting procedures and their application in the Performance and quality warranties international arena provided by suppliers
Facts PPI’s forecast for 2013 to execute 5,230 operations +27% vs. 2012 Is a company with a team of 100 colleagues 181 Framework Agreements in operation with suppliers from all the continents PPI is planning to growth 300% in 2013 in operations value which represents $11,600 USD MM
PPI Today Has a Strategic Orientation Develops strong alliances with Business Partners Develops Innovating Commercial Schemes Focuses in Knowledge Development Adds Value to the PEMEX procurement process
Become a registered supplier and access to this presentation by visiting our webpage http://www.pemexprocurement.com
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