Shopping Cart Types

Shopping Cart Types

• Limit Shopping Carts are used to procure annual services or non-coded goods with unexpected amounts
• Limit items are usually high dollar, but the dollar amount is hidden from the supplier
• For limit shopping carts, after services or goods are provided, the supplier invoices against the purchase order number
• Limit shopping carts are also known as blanket, framework, or time and material orders
• Freetext Shopping Carts are used to procure items not in a catalog and are not coded
• Freetext shopping carts are used for spot purchases or one-off buys that will be bought less often
• Freetext items might be used for a one-time service

Internal Goods/Services Shopping Cart

• Used to procure a coded or materialized item directly from the supplier instead of the plant storeroom.

Catalog Shopping Cart

• Used to procure items from large, regionally managed suppliers
• Items defined in catalogs are bought more often and have negotiated prices
• Pre-negotiated pricing allows the shopping cart to skip all procurement approvers
• For Guy Brown and AIT (Applied Industrial Technologies), the buyer should check the catalog for any items that come across as freetext

SC Creation - Key Terms

• Product Category is a high-level category of the material being procured
• The buyer changes this category during the buyer completion step
• Categorizing each shopping cart allows for spend analysis

Preferred Supplier - Goodyear Specific

• A supplier that Goodyear prefers to use over other suppliers who offer the same items
• Goodyear Preferred suppliers have negotiated/contracted pricing and benefits from using the specified supplier

Preferred Supplier - SAP SRM System Specific

• A supplier that the end user prefers their items to be bought from
• This does not necessarily mean this supplier is on the official preferred supplier list; it's more like a "recommended" supplier.

Payment Terms

• Terms required for payment on a product are a function of the service offering of a vendor
• Large customer may use its purchasing power to force a supplier to agree to terms that are more favorable to the customer
• Goodyear standard payment terms for indirects = Net Prox 90 (NP90)
• Prox = the clock on invoice aging starts at the end of a given month instead of upon actual invoice receipt.

MRO

• MRO stands for maintenance, repair, and operations
• This involves fixing mechanical, plumbing, or electrical devices if they break
• MRO includes routine actions to keep the device in working order (scheduled maintenance) or prevent trouble (preventive maintenance)
• MRO includes all actions intending to keep or restore an item so it can perform its required function properly

SRM Approval Process Flow

• The buyer assigns the supplier, sets/approves the price, and adjusts the product category during the Buyer Completion Step

Buyer Completion Step Process

• Change the product Category
• Set the Price
• Assign the Supplier
• Check for/attach supporting documentation
• Delivery Dates

Buyer Completion – Common Terms

• MI (Manufacturing Indirects) are items that are used in the manufacturing process but do not go directly into the tire, such as MRO or contractor labor
• NOMI (Non-Manufacturing Indirects) are items/services that are bought and not used in the manufacturing process, like benefits, IT or consulting
• RFX encompasses Request for Information (RFI), Request for Proposal (RFP), Request for Quote (RFQ), and Request for Bid (RFB)

Buyer Completion – Common Terms cont.

• Total Bid Score considers all aspects of providing a good or service, including price, freight, duties, delivery time, pay terms and quality
• Bidder refers to a supplier company that has been requested to bid or submit a quote
• Award is the order for the good or service from the company that won the sourcing evaluation or competitive sourcing event
• Competitive Bid is a sourcing/bid event that includes at least 3 qualified suppliers

Buyer Completion – Common Terms cont. 2

• Sole/Single Source process follows when the business area/requisitioner submits the form justifying why only a specific supplier can provide the good or service
• The form must be approved by business area management
• Procurement considers only that supplier to provide the good or service

Lien Wavier

• A legal document signed by a prime contractor and all subcontractors protects from contractor liens (in USA only) when projects deal with construction, repair or improvements to real property
• The lien waiver process is required for projects above $50k USD

Buyer Tools

• Shopping Cart Monitor searches among any shopping carts within SRM
• SC Recall by Buyer is used when the SC has already been submitted and needs revised from the buyer, but before the PO is created
• Contract Management searches among any SRM contracts
• Purchasing searches any Purchase order in SRM
• Workload Redistribution GY is used by team leads to redistribute any work between the buyers
• XWI (Extended Workflow Interface) is an optional tool use for quicker processing

Key Policies in Buyer Completion

• Spend approval required by the business
• Sole/single source justification requires an EXCEPTION DOCUMENT
• Competitive bid documentation needed if above threshold

Parties Involved In Buyer Completion

• End User (internal): Main customer when processing orders in SRM or SAP, often helps the buyer find the supplier for the item they are requesting
• Buyer/Procurement (internal): Responsible for the buyer completion step (changing the product category, setting the price and assigning the supplier)
• Supplier (external): Responsible for providing Goodyear a price for an item, may supply parts from different manufacturers
• Business approvers: Responsible for signing off on the spend of the item, handles the cost center budget and ensuring that spending stays within budget

E-Sourcing/RFX Tool

• Create RFX - Add Bidders, Payment Terms, and Dates
• Add any additional information (attachments, questions, notes, etc.) to provide vendor enough information about the part being sourced
• Publish the RFX
• Awards and Responses - View responses from supplier
• Choose the best response based on the total bid score
• Award the bid and click “Update Shopping Cart” after response has been awarded so that the shopping cart is automatically updated from the RFX.

Issue Resolution: Incorrect Price

• If a supplier identifies the price is incorrect on the purchase order: the notification must be in writing
• If a contract price, challenge the request; if a price change is needed, the SSC can revise the price within SAP's tolerance threshold
• In SRM, enter the price change on the PO so approval occurs. SRM contract and line item numbers may need deletion first
• Submit a contract price change to the weekly file

Issue Resolution: Incorrect Manufacturer

• If an end user receives the incorrect manufacturer of their product: Check the shipped item against the PO detail.
• If the supplier shipped the incorrect item, the plant has to arrange the return
• To correct the PO: submit a PO change as needed and if a related contract also requires a revision, submit the change to the weekly file so that future orders are correct
• Pay attention to the change being for a local plant vs a regional item
• If a regional supplier, involve the Akron commodity team to work with the supplier so that future orders are correct

Issue Resolution: Expedited Delivery

• If the item requested is needed sooner than the supplier delivers: the SSC should attempt to resource the item to a supplier that can meet the required delivery date
• If there is no alternate supplier, work with the existing supplier to possibly arrange an earlier delivery date

Issue Resolution: New Bidder Setup

• If a supplier is not set up as a bidder within SAP SRM: check the vendor master to ensure setup of vendor is completed via MK03
• Then, escalate to the help desk so the vendor can be manually pushed to SRM (where the bidder is automatically created)

Issue Resolution: Payment Terms

• If a supplier does not accept payment terms offered in the RFX: the buyer submits a payment terms change request
• If approved, the buyer processes the requisition or shopping cart, requesting Kevin Holden to revise the payment terms on the PO once it is issued

Issue Resolution: No RFX Responses

• If an RFX gets no responses: send a reminder request
• If suppliers still decline and the GBC cannot find other sources, contact the requester for other supplier suggestions

SAP PO Processing

• Logistics Purchase Order Creation: a spreadsheet from the logistics team enables the buyer to enter purchase orders into SAP, after inquiring to logistics for missing details
• Logistic Purchase Order Revisions: Logistics purchase order revisions are emailed directly to the buyer to be made directly in SAP
• GE&MT Capex Purchase Order Revisions: Capex POAs (Purchase Order Acknowledgements) are required from suppliers
• If making changes ensure approval by the material coordinator before making changes in SAP via Smarteam
• SAP MRP/Non MRP PO Revisions: such PO revisions happen directly in SAP

SAP Processing

• ME5A: Daily MRP extract at 8:00, 11:00, 14:00 and 16:00 to process/send the plant SAP requisitions
• ME53N: View the SAP purchase requisition transaction
• ME23N: View the SAP purchase order transaction
• 1 = Create
• 2 = Change
• 3 = Display

Purchase Order Acknowledgements

• Expense POA - No changes: No action is required
• Expense POA - Requested changes: Review the change and update the PO if necessary
• Capex POA - No changes: Required
• Capex POA - Changes: Approval from the material coordinator must be obtained before updating the PO