Category Management Process
Procurement at BOC operates under a Category Management (CM) Framework. CM is a comprehensive end-to-end engagement model for defining business needs and implementing the most suitable sourcing solution.
A sequential and data-driven process is applied to ensure value for BOC and minimise the risk of non-compliance during post contract implementation.
BOC uses a range a of ‘go to market’ strategies to ensure competitive “Total Cost of Ownership” proposals are sought from the market. The “go to market” strategy is selected according to the requirements of the procurement need, and can include:
- Multi-supplier proposals
- Single source supplier proposals
- Request for information
- Formal request for tender
- Request for quotation
- Reverse auction
BOC uses and therefore encourages the use of e-Procurement and highly values suppliers that offer and invest in such e-commerce solutions (e.g. Punch-out, catalogue systems, portals, etc).
Ongoing Supplier Relations
Through the use of ‘living’ contracts, both the supplier and BOC will have an understanding of each other’s objectives and will actively work to ensure that these are met and provide value. BOC will meet with its suppliers to provide open and honest feedback about the relationship and will use these meetings to drive performance.
BOC has a philosophy of continuous improvement with its suppliers and works under Six Sigma methodologies to drive efficiency. Our objective is to reduce costs while improving value to BOC. The Procurement Department endeavours to treat all parties involved in the CM process fairly.
To ensure timely payment, suppliers must submit accurate invoices to the Accounts Payable Department at BOC. The invoice must contain a Purchase Order number and there is a risk of non-payment if a purchase order has not been received. The invoice must also show the correct costs, quantities, description of the goods or services provided and must have completed delivery or properly performed the service required. If milestone payments are required, these must be negotiated and documented in a contract before any work is started.
It is BOC policy to pay its suppliers thirty two (32) days from month end following receipt of an invoice. For example, if an invoice is submitted on the 16th of April, payment will be on the 1st June and an invoice submitted on the 30th April will also be paid on the 1st June.
Being a supplier of goods or services to BOC does not mean that the supplier is endorsed by BOC. If a supplier wishes to use any material that relates to BOC or The Linde Group then formal approval of that material must be sought from BOC. References may only be obtained from BOC if the supplier is in a contracted strategic relationship with BOC.