OER Business Summit was held in Muscat on Wednesday 11th May 2016. Organised by Oman Economic Review (OER), the Sultanate’s premium business magazine, and held under the theme ‘The Diversification Imperative,’ the Summit included paper [...]
Standards and Methodology for Subcontractors
The pre-qualification of a subcontractor is a thorough and exhaustive process. The process of evaluating subcontractors has a well defined and documented procedure and system. The evaluation starts with the completion of the pre-qualification document by the sub-contractor which is scrutinized in detail to understand the following:
- Financial capability of the sub-contractor to meet OCI’s requirements
- Service performance
- Capability to perform a particular service with regards to competent staff it may have
- Reputation in the market and the industry
- HSE, Environmental compliance and fulfillment of social responsibility
- Quality Systems
- Omanization (where applicable)
This is followed by a visit to the subcontractor’s premises by the staff of OCI to assess the capabilities and verify the information as provided in prequalification document. A market feedback from the existing customers of the sub-contractor is also taken to confirm the performance track record.
Materials are tested against OCI/international standards three times. First test is on small lab scale, if the sample passes, then slightly larger quantities for production trial and finally bigger lot to assess the logistics and other related service capability.
The prequalified subcontractors are then invited to participate in tender for the services they have been prequalified. The new subcontractors are given equal opportunity.
OCI establishes a detailed service contract with all the Sub Contractors which clearly indicates the Key Performance Indicators (KPIs) to monitor the service performance level as per OCI’s expectation and are pre agreed. These KPIs are reviewed periodically during the course of a contract/supply agreement. The performance measured and monitored through these KPIs becomes one of the criteria for selection of bidders for next tender and commercial assessment.
Once the subcontractor becomes prequalified and part of OCI approved subcontractors’ list and is successful in the bidding/tendering where OCI has awarded business to it, OCI and the subcontractor agree to a set of key performance indicators and their measuring system/procedure. All the sub contractors are rated on yearly basis against the targets and the rating is conveyed to the sub-contractors. The sub-contractors who do not perform well are asked to improve their service levels and provide a plan in writing to achieve this required level of performance within an agreed period of time frame.
The subcontractors who fall below the minimum rating are not considered for future contracts, unless they improve their quality and performance and demonstrate this to OCI.
Oman Cables is an Omani company and its employees take pride in being so. OCI’s motto “Truly Omani – Trusted globally” explains the same essence.
At OCI, we continuously strive for development of local resources for its materials and services requirement. In this regard, OCI encourages entrepreneurs to invest locally and where possible, OCI also invest in such ventures.
The Oman Aluminium Process Industry and PVC Compounding plant are examples for such ventures.
These ventures not only helped OCI in sourcing materials locally, but also helped the country in creating more jobs for Omanis.
OCI has helped the local manufacturing industry by helping them to develop raw materials for the manufacture of cables and related products and continuously strives to encourage and develop local industry. This not only reduces OCI’s dependence on imports, but provides boost to local industry and employment.
Warehousing and Transport
OCI has a very well established Supply Chain Department which is responsible for procuring raw materials, warehousing and distribution to the customers. The Logistics department within OCI Supply Chain Function has motto of “right first time” where customer comes first, and ensure that right product is safely delivered to right customer at optimum cost.
The Logistics department’s responsibility starts from the time an item is ordered and ends with the delivery of the finished cables to customers when such items are converted into cables. Its key role is to make and manage contracts with logistics service providers for road, sea and air transportation, meeting the expectations as set by OCI leadership.
OCI floats tenders for road, sea or air logistics services annually. OCI delivers to customers within Oman as well as within GCC by road. This needs extra care in selecting the service providers having adequate knowledge and experience of cross border Customs requirements within GCC.
Only the pre-qualified Logistics Service Providers are invited for bidding with preference to Omani companies.
The transport service providers are chosen after the screening of their facility such as fleet strength, HR and other support mechanism.
These subcontractors are appraised on their performances every quarter and to discuss future course of actions if performance is below par.
The Logistics works in conjunction with warehousing departments to ensure smooth and safe clearance and receipt of consignments of raw materials and with Customer Services and Warehousing for timely and safe deliveries to customers all around the globe.
OCI delivers the finished products to the customer. The “delivery” consists of order processing, warehousing, and transportation and involves many interfaces. At all interfaces, Customer requirement” is given top priority and orders are processed to the fullest satisfaction of all customers.