We created History……
WPP Urea Bags Ordering – Realized Savings in the tune of Millions !!
In April 2017, Urea bags were procured using Ariba software and the unit price of PKR 29/Bag was a
decent deal considering the yester year Corporate Plan target.
After eight months in December 2018, the requirement for new order was generated. The challenge was
to acquire a bag price without much impact due to increase in raw material prices (increase by 200+
USD/Ton) and hike in exchange rates (more than 5%).
The team came up with a unique approach of offering the bag manufacturers the quantities as per
their own choice if the same rate of PKR 29/Bag was acceptible despite the increase in raw material and
USD exchange rates! The idea clicked as it was a WIN-WIN situation for both Efert and Bag
manufacturers. Surprisingly the bag manufacturers offered an astonishing 26 Million Bags on the
previous rate of April 2017 resulting in UNPARALLED RECORD SAVINGS, unheard of in the industry!!!
Just to add more to the suspense, as we write this article, procurement team is still procuring urea bags
at the same old rate of April 2017 despite the fact that USD exchange rates went as high as Rs.130!
We are hoping to write yet another article in the next issue sharing more success stories :)
PS: a gift for the person who can guess the saving numbers !!! (a small tip: highest ever Non Ariba
savings in the last decade)
Faraz Bin Shamshad / Syed Talha Raza
DAP Bags PROCUREMENT
Efert procurement team chose an entirely different approach for DAP Bags Ordering. Reverse
Auction for 6.2 Million Bags was carried out by devising an exceptional approach compared to
previous reverse auctions where we used to distribute quantities amongst all participating bag
manufacturers.
In this auction, all the bag manufacturers were explicitly communicated in advance that only Top 5
Leading Bidders would be awarded the order, while the rest would have to wait until the next
time.
This statement and in other words as we call it the “Innovative Procurement Strategy” created an
intense price competition resulting in “Highest Ever DAP Bag Savings” in the history of EFERT!!
Faraz Bin Shamshad / Fahad Mirza Baig
A symbol of motivation…
A creative mind, a teacher, one who inspires his students with his work and a
soul who is willing to go beyond the call of duty to make an impact in his
community - that’s Haq Nawaz from Kacha, interior Sindh.
Mr. Haq Nawaz belongs to an extremely humble family that earns their bread
& butter from farming. He completed his primary & middle education from
Kacha School Education Program, a project of Engro Foundation.
Unfortunately, he wasn’t able to continue his higher education due to
financial reasons but his talent & commitment to education, made him learn
science subjects on his own. He created models equipments & machine with
locally available material at school which included ATM machine, Wind
Turbine, Multimedia projector, Electric cycle, Electric Door Bell etc. He has
displayed all his models at district level science exhibition and secured first
position.
Engro Foundation appointed him as science teacher at middle school, Nazar
Muhammad Indher & he has proved to be an excellent teacher. He is
popularly known as Einstein of Kacha & it’s heartening to see young minds
playing a positive role in society.