EMBL Procurement Evelyne Cudraz, EMBL Joint Purchase Manager
Agenda 1 2 • EMBL in figures • Purchasing activities in figures • Purchase order categories 3 • Procurement process: Approval • Procurement process: Solicitation of quotations • Supplier selection criteria 4 2 • Short presentation of EMBL Purchase Department • Procurement activities and mission • Strengths and Weaknesses • Ongoing projects 3/18/2018
Why EMBL? • Creating a centre of excellence for Europe‘s best scientists. • Sharing the financial burden as a European Intergovernmental Research Organisation. 3 3/18/2018
EMBL 21 Member States • • • • • • 4 Austria 1974 Czech Republic 2014 Denmark 1974 France 1974 Germany 1974 Israel 1974 Italy 1974 Netherlands 1974 Sweden 1974 Switzerland 1974 United Kingdom 1974 Finland 1984 Greece 1984 Norway 1985 Spain 1986 Belgium 1990 Portugal 1998 Ireland 2003 Iceland 2005 Croatia 2006 Luxemburg 2007 Australia (Associate member state, 03. 2008) Argentina (Associate member state, 04. 2014) 3/18/2018
The Five EMBL Sites Heidelberg, Germany Basic Molecular Biology Research Central Administration. Approx. 900 EMBO Hamburg, Germany Structural Biology / X-ray and neutron radiation. Approx. 80 DESY Grenoble, France Structural Biology - Approx. 60 ILL, ESRF, IBS, UVHCI 5 3/18/2018 Hinxton, UK Bioinformatics - Free access to Biological Databases. Approx. 600 EBI, Sanger Centre Monterotondo, Italy Mouse Biology - Approx. 60 EMMA, CNR
The Five EMBL Missions Services Technology Transfer Basic Research Advanced Training 6 3/18/2018 Instrument and Technology Development
EMBL Procurement Activities 7 3/18/2018
EMBL Purchase Department The Purchase Team Christian Moritz Evelyne Cudraz Daniel Hristov Christopher Ruranski Head of Purchase Department Joint Purchase Manager Purchase Officer The Stores Team Richard Wittmann Ioannis Karagiannis Marc Hiller 8 3/18/2018 Storekeeper
Procurement internal & external interaction Scientists SAP Invoice. Control/ Finance/ Accountings/ Budget Warehouse /Good receipt SAP-Support Scientific Maintenance Department Suppliers Procurement Department 3/18/2018 EIRO Forum Safety Office Legal Services Auditors Outstations 9 Facility Management
Procurement activities, goals and missions (1) Ø Offer high-level service, share expertise and support scientists in their daily tasks. Ø Process orders centrally in an efficient, timely and costconscious way in accordance with EMBL financial rules. Ø Orders are issued through SAP SRM Shopping Cart (Net. Weaver, Version 3. 5. 2. 29) on user side and placed by the Purchase Department in SAP (SAPGUI for Java 7. 10 Rev 6) for better traceability. 10 3/18/2018
Procurement activities, goals and missions (2) Ø Negotiate best-buy conditions for EMBL. Ø Research and select reliable and competent suppliers. Ø Implement and apply procurement procedures in accordance with EMBL financial rules. Ø Deal with potential complaints, goods return etc. 11 3/18/2018
EMBL in figures: Income & Expenditures Ø EMBL total income in 2013 206 Mio. € • Member State/Associate contributions 120 Mio. € • Other contributions (ext. grants, intern. tax) 86 Mio. € Ø EMBL total expenditures in 2013 203 Mio. € • Staff costs (salaries, social security) 114 Mio. € • Operating costs (leasing, services, canteen) 73 Mio. € • Capital expenditure, depreciation (buildings) 16 Mio. € 12 3/18/2018
EMBL Operating costs in 2013 • • • 13 Lab materials Services/Utilities Maintenance and repair Rent & leasing External services Insurance, fees, etc. Transport & travel External relations Office supplies, telephone Canteen, nursery, other costs Total 3/18/2018 13 Mio. € 8 Mio. € 7 Mio. € 29 Mio. € 3 Mio. € 1 Mio. € 2 Mio. € 5 Mio. € 73 Mio. €
Purchasing activities evolution Procurement Activities/ Total Expenditure 14 3/18/2018 2011 56 Mio. €/ 70 Mio. € 2012 55 Mio. €/ 71 Mio. € 2013 63 Mio. €/ 73 Mio. € 2014 ? Mio. €/ 76 Mio. €
Purchasing activities in figures • 16. 000 orders placed in 2013 / Total 63 Mio. € 10. 191 orders EMBL Heidelberg 5. 809 orders EMBL Outstations • Purchase volume by EMBL sites in 2013 / Total 63 Mio. € EMBL EBI, Hinxton, UK EMBL Heidelberg, Germany 30 Mio. € 25, 5 Mio. € EMBL Monterotondo, Italy 4 Mio. € EMBL Grenoble, France 2 Mio. € EMBL, Hamburg, Germany 15 3/18/2018 1, 5 Mio. €
EMBL Purchasing activities in figures • Purchasing volume by suppliers country of origin Top 10 in 2013 UK Germany Italy France USA Netherlands Ireland India Switzerland China 16 3/18/2018 30, 5 Mio€ 25, 7 Mio€ 3, 6 Mio€ 1, 8 Mio€ 695. 000€ 313. 000€ 236. 000€ 214. 000€ 79. 000€ 45. 000€
EMBL Purchasing activities in figures • Purchasing volume by material groups in 2013 / Top 10: Services 37 Mio€ Computer equipment 8 Mio€ Chemicals 5 Mio€ General Lab. Equipment Optical Instrumentation 1, 8 Mio€ Minor Lab. Equipment 1, 7 Mio€ Software 1, 7 Mio€ Glass/Plastic ware 1, 2 Mio€ Computer supplies 809. 000€ Gases 17 3, 8 Mio€ 263. 000€ 3/18/2018
Purchase order categories/types (1) Ø Standard purchase orders, no SAP material. Approx. 80%. Ø Stock items (1. 200 items at EMBL stores, SAP material, total value approx. 350. 000€. Yearly selective tendering. Ø Contract orders (value or quantity contracts). Approx. 20. Ø Standing orders, call-off orders. Approx. 20. Ø Limit orders (small orders for Facility Management). Approx. 50. 18 3/18/2018
Purchase order categories/types (2) Ø Repair orders (for Scientific Instrument Maintenance). Ø Facility Management orders. Ø Oligo orders (sequences typed directly in supplier onlineshop, order is created automatically in SAP). Ø Credit card orders. Ø Internal orders (invoice is already in house). 19 3/18/2018
Purchasing Rules and Regulations Ø EMBL has no obligation to apply the Fair Distribution principle to its Member States. In practice, it does strive for delivering “juste retour”. Ø Limited invitation to tender. No open invitation to tender. Ø Slim, flexible, transparent and pro-active purchasing process for minimizing bureaucracy. Labs can be fully equipped within a few weeks. 20 3/18/2018
EMBL Financial rules & regulations for procurement < 500 EUR orders < 12. 500€ orders Conditions based on agreements, special promotions etc. ≥ 12. 500€ orders Selective tendering for goods and services: 3 quotes from manufacturers and contractors located within the territories of Member States - if possible and/or scientific justification. ≥ 250. 000€ orders Same procedure as ≥ 12. 500€ orders. Orders must be reported to Council for info only. ≥ 1 Mio. € orders 21 Low-value orders Same procedure as ≥ 12. 500€ orders. Prior Council Approval required. 3/18/2018
Who decides about procurement? EMBL Council Scientific Advisory Committee Finance Committee Purchase Office Hamburg Purchase Office Monterotondo 22 3/18/2018 Purchase Office Grenoble Purchase Office Heidelberg Purchase Office Hinxton
Procurement Process Approval Process Purchase Request Approval Process automatically approved by SAP System Purchase Office approved by budget holder (GL/Head of Unit) Estimated purchase price Council Non EMBL Funds 23 3/18/2018 Purchase Office yes Purchase Office Solicitation Process
Procurement Process Purchase Request Solicitation of quotations Approval Process Solicitation Process Purchase Price ≥ 12. 500€ < 1 Mio. € Lowest offer or Scientific Justification yes 24 3/18/2018 Purchase Order
Supplier selection criteria 1. 2. 3. 4. 5. 6. 7. 25 Best value for money Delivery performance Technical specifications Guarantee, Service, Insurance Within Member States countries, if possible Penalties for non-performance Patent and Law 3/18/2018
Strength and weakness of current system Flexibility, Efficiency, fast approval and ordering process. Lack of Reporting in SAP No unnecessary bureaucracy, slim processes. Service orders on EMBL general budget not placed in SAP: insurance, printers, electricity, leasing contracts… Service oriented, user-friendly. Different EMBL locations, site sizes different processes. Scientists are entirely satisfied with the current purchasing processes (Survey results: 95% positive!) Low repartition between member states, not always „Juste retour“. High savings due to selective tendering (avoid subcontracts). No Document Management System. Long term supplier relation. Good service. Low HR costs: small team. 26 3/18/2018
Future projects / Improvement proposals • LEAN Catalogue for stock items. • Automatic invoice processing software for a better „purchase-to-pay“ workflow. • Partial implementation of SAP Fiori for scientists (Apps) • Documentation Management System. 27 3/18/2018
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