VENDOR MANAGEMENT

Vendor Management
E2E Business Readiness
Inputs 0
Business & - Solution addressing up-coming business
Account Plans, BRM, - Risk, challenges (inputs to business decision)
Resource Forecast Solution
Readiness - Cost, resource, quality, scope, time-line (inputs to project)

1 2 3 4 5

Procurement General Criteria RFI to Service

Plan Evaluation Subcontractor Technical Evaluation Experience
Assessment

Procurement Procurement – Procurement Procurement – Procurement &

& Vendor Commercial T&C, etc issue RFI Commercial Vendor Management
Management Vendor Management – Vendor to gather Intelligence
to jointly SoW, OHS, etc & Vendor Management – and Perform
develop Management Technical Reference Checks

6 7 8 9 10
SoW and Resp. Supplier Selection Agreements
RFP and RFQ Negotiation
matrix*

Vendor Procurement Lead by Procurement

Management Procurement and Board
+ Technical Supported by
Support Vendor
Management
VENDOR SELECTION OVERVIEW
Forecast phase Vendor Establishment phase Governance phase
Skills Program
Development Improvement
phase

Scope
Scope of
of

Service Delivery
Work
Work Metrics
Metrics
(Scorecard)
(Scorecard)
Reporting
Reporting

Company
Company Quality
Site Training
Training Quality
Evaluation
Evaluation Contract
Contract Audit
Implementation &
& Audit
and
and Agreement
Agreement System
Forecast Certification
Certification System
Selection
Selection

Performance
Performance
Management
Management
Purchasing
Purchasing
Information
Information

Vendor
Vendor
Management
Management
Steering
Steering
Procurement Group
Group
Technical Support
Operation & PMO

Shared responsibility
 VENDOR SELECTION PROCESS
Approach LTE
for Selection Receive Process –
Vendor New
Technical Evaluate Notification
Company &Respond Sign Price ASP Induction
Assessment
Compliance
Preparation
Sign Service
Agreement
No Send RFQ or Price
No compliance and
Conduct Legal request Team Comply
Yes
& Financial Pass commitment
Assessment Yes
Pass Send new Make
No Vendor selection Service
LTE Agreement
Notification Service
Procurement Yes
Recommend for agreement
Vendor Legal & Technical Final SWOT
Financial Assessment & Evaluation Make Price LTE
Analysis
Assessment form send Company SWOT Agreement Agreement
Report
profile analysis Filing form

Conduct Technical Send Technical Vendor Technical

Assessment by calling Assessment Assessment form Receive
Vendor to LTE office form
Notification
LTE Vendor (for SoW) to Procurement
Management Process –
Conduct New
Technical LTE induction
Assessment

Technical Receive
LTE Engineering Notification
Clarification
Process –
New
LTE Induction
Documents/Evidences for – Commercial & Legal Assessment

Legal Assessment: 3. Business Licenses to operate in Indonesia

• Legality letter of trading business/ Trade Permit
1. Company Profile
• Certificate (SIUP)
Formal "Letter of Interest" to be EID's
Subcontractor (the service they offer) • Business Registration from the Industrial & Trade
Department (TDP)
Company Organization Structur
• Business Registration from the General Directorate
Photocopy of ID papers for all BoD and BoC Taxation (SKT)
Other Information (ie; References, • License of Domicile/ Company
Recommendations, Experiences, etc)
2. Legal Corporate Document
Deed of Establishment (DoE) and the 4. From potential ASP company - Financial
amendments (if any) Assessment:
Approval from the minister of justice for the • Audited Financial Report
DoE
• Tax report (SPT Badan & SPT Masa PPN)
Tax Certification Number (NPWP)
• Company Bank Account Statement
General Department of Tax acknowledgement
(PPKP)
• Credit Line (if any)
Documents/Evidences for –Technical Assessment

From potential ASP company

Company profile
Company Organization chart
Operations Organization chart
Documentation handling process
Reporting & Escalation handling Process
Tools, Test Equipment, Software Details
Work flow
Currently used for any ongoing project execution
Planned for the proposed SoW (general)
Quality plan
Environment and OH&S plan
CVs of key resources and of some team members.
 Vendor Performance Management - Summary
By measuring KPI (Key performance Indicators), in
Technical, Non Technical, OHS & CoC compliance &
Vendor Performance Evaluation
progress update.

By half yearly stakeholder survey.

Stake holders survey

Quality Installation By installation quality checks

Based on KPI – Rewards - more work for

Vendor Reward and Penalty
performing, Penalties – Less/No work.

Vendor classification

Based on the performance – Preferred (top 1 – 3),

Regular Projects Review
Recommended (next 4- 6), Observation (next)

Vendor Engagement

Monthly F2F meetings, with Vendors,

Project, Other Department units etc.

Vendor Performance
Management By Workshops, Induction sessions
PARTNERSHIP CRITERIA SELECTION

• Quality & Capability

Mandatory • Financial Stability
Ex: 65% Criteria •
•
Capacity
Commercial

• Service Type Category

• Experience & Reference
Supplementary • Geographical Coverage
Ex: 35%
Criteria •
•
Tools & Machinery
OHS, CoC &
Environmental
DESCRIPTION OF CRITERIA
• Performance card for existing • Multi category Service, sub-
Quality & suppliers Service Type category offering (E2E Solution,
Capability • Quality certificates Category NRO, NDO, CME, Delivery, PO)
• Quality tool usage/experience

Experience & • Previous work for LTE

• Financial stability and liquidity Reference • Reference from similar work
Financial • Insurance levels (beyond minimum
Stability levels)

Geographical • Geographical presence in the

Coverage Regional/Area in scope/plan
• Number of crews
Capacity • Up/down ramping • Type & Number of tool and
• Production rate, efficiency rate
Tools & machinery
Machinery • Quality and maintenance of tool
and machinery
• Price competitiveness on the defined
SoW
Commercial • Yearly Spend and PO OHS, CoC & • OHS, CoC, Environmental
• Payment terms Environmental
FORM EVALUATION - PT. XXX
PROJECT Experience Tools Invest, Preferred Region & Capacity
1. Field Maintenance service project for H3I and XL- Huawei - Since • Tools Investment Basic: All working tools like basic tools, BER
2015 till present, Region: West Java, North Central Sumatera,
Jabodetabek - PM & CM for passive and active equipment test, Site Master, Genset are own by company, Automation Tools

2. Field Maintenance service project for xl – Nokia, Since 2018 till • Company support capacity: 500 sites/year
present, Region: East Java & Bali Lombok, PM & CM for passive and
active equipment • Preferred Region: Java and Sumatera
3. CME Maintenance for Tower Provider (STP), Since 2020 till present,
Region: Jabo, Kalimantan, All Sumatera, PM & CM for passive

Assessment Result Recommendation

No Description Value (1-5) › PT XXX have plan to use outsource resource and need to be
1 Delivery Plan 3
agreed by LTE for composition
› Installation training for RAN/IP Product by LTE and Process
2 Scope Understanding 3 Understanding, Safety and work at Height training more effort
3 Resources 2 preparation
4 Delivery Experience 2 › Need more Invest for Tools readiness & Resource knowledge
readiness
5 Product Knowledge 3
› Big company but small capacity support in which requirement
6 Process Understanding (PM and CM) 3 just 500 sites/year
7 Tools Arrangement 3 › Make sure to E2E Mechanism proposal from starting Survey, CME,
8 Operation Management 4 Installation, PM, and also NDO
 Onboarding - Personnel Vendor
• Vendor wajib memberikan feedback form detail team yang akan bekerja
• Apabila ditemukan personnel Vendor yang tidak memenuhi persyaratan, vendor
diwajibkan untuk mengganti dengan personnel lain
• Lampiran yang diperlukan:
• Foto KTP asli
• Foto diri (selfie) lengkap dengan APD
• Foto License Working at Heigh (WaH) asli yang masih berlaku yaitu TKPK1 bagi
Installer/Team Leader/Rigger/Yang Memanjat
• Menyelesaikan Induction Training dari Perusahaan LTE, seperti Technical dan OHS (First
Aid/P3K Training, Tower Rescue)
• Memiliki Surat Keterangan sebagai Mitra Kerja LTE
• Memastikan personnel Vendor memiliki administrasi perlengkapan diri wajib seperti BPJS,
Surat Keterangan Sehat bekerja, Surat Izin Mengemudi (bila diperlukan)
 COMPETENCE TYPES
Technical Non-Technical
RBS Installation & Commissioning Working at Height – by Kemenaker RI

Mini-link Installation & Commissioning Workshop : CoC, CoBE, Compliance – by LTE

CISCO Router xxx

xxxx

Others

Engineers Team Leader Installers

100% Certified 100% Certified 50% Certified
ASP Performance Evaluation
- Calculation Method
The performance evaluation of Vendor is done considering….
• Technical requirement/performance/compliance.
• Non technical requirement/performance/compliance.
• OHS & E and CoC compliance.
• Adherence to LTE process.
• Every month, in LTE’s tool.
• Sharing the performance evaluation with ASPs and stakeholders.
• Initiating action plans for improvement and rewards/penalties if needed.
• Example:
 Document Turnaround Time
 Quality Installation
 Acceptance Success Rate
 Resource competence
 Technical Compliance
 OHS/E Compliance
REWARD & PENALTIES
– Rewards
› Sites with No Alarm – rewards?
› Contractual – More work

– Penalties
› Sites with alarm – deduction ?
› Non compliance
VENDOR MANAGEMENT
Day to day tasks:

• Meeting Review - F2F - Monthly