Linde THAILAND - The Linde Groupappl.linde.co.th/bill_placement/linde_to_vendor_communication.pdf · • Linde Thailand have the right to terminate the business relationship and agreements

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21 July 2016

Procurement & Finance

Linde THAILAND

Communication to Vendors

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Agenda

1 Linde APAC Overview

2 Supplier Code of Conduct

3 Procurement Process

4 Delivery & Invoicing

5 Billing & Payment Process

6 Bill Placement Process

7 Q & A

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Linde in Asia Pacific1

Since 1911…

1 Based on Linde Sales 2014 in €M @BU15 fx, post IFRS 10/11.

AsiaPacific

Americas

New Zealand1911

Bangladesh1972

Pakistan 1949

East Asia (REA) - 4 countries- 37 wholly foreign owned entities- 31 joint ventures

China1985

Hong Kong1959

Philippines1971

Vietnam2005

Indonesia1971

Malaysia1960

Thailand1965

Sri Lanka2

1936/2010 Singapore3

2004

1 Dates denote year of establishment of our entities in the indicated country.

2 Sri Lanka was first set up by the BOC group in 1936.3 Previously Linde Syngas Pte Ltd. 4 Previously Consolidated Industrial Gas Inc.

3 Regional Business Units20 Countries

India1935

South & ASEAN (RSE)- 10 countries- 60 legal entities- 3 publicly listed companies

Australia4

1935

South Pacific (RSP)- 6 countries- 35 legal entities

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Korea1989

Taiwan2001

~ 1,000,000 customers.REA: >39,300 ; RSE: >42,000 & RSP: >900,000 Over 1,000,000 customers.

RGC: >50,0000, RSE: >38,000 & RSP: >100,000

Our Business in Asia Pacific | Today

1 Facts as at November 2013 . 2 With total ASU & CO2 capacities at 38,100 tpd and 4,611 tpd respectively.

311tonnage & merchant plants2.REA: 167; RSE: 126 & RSP: 18

144 cylinder filling sites.REA: 23; RSE: 50 & RSP: 71

3,143 trucks & iso-tanks. REA: 271; RSE: 2,050 & RSP: 822

62 projects in commercialisation.REA: 32; RSE: 25 & RSP: 5

More than 5,000,000 cylinders.REA: >250k; RSE: >1.1 million & RSP: 3.7 million.

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Our Business

A Strong Business with Extensive Coverage1.

1 Based on Linde Sales and Marketing data, 2015

2015 Net Sales of TH 7,400 MTHB

31%

7%

43%

19%

Tonnage

Healthcare

Bulk

PGP

Electronics

PED

8%

8%

17%

5%25%

4%

7%

2%

10%

7%7%

LOX

LOX Medical

LIN

LAR

LCO2

H2TT & HeTT

Comp. IP

DA

Special gases

Hardgoods

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Supplier Code of Conduct (SCOC)Compliance is mandatory

Ethical Procurement • Employees of Linde are not allowed to request or demand for gift of value, commission, etc. from any Supplier • If you are aware of such cases, immediately report to the Management or email to [email protected]• Such communication will be held in strictest confidence.

Non-compliance could lead to supplier termination • Linde Thailand have the right to terminate the business relationship and agreements with any Supplier if there is a material breach of the SCOC

Strict adherence to Linde Supplier Code of Conduct requirements• Available in www.linde.com/supplier-CoC• Also reflected in in the Purchase Order document

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S T R I C T L Y C O N F I D E N T I A L

Receive Vendor’s

invoice (Scan Operator)

ProcurementUser/L. Manager LGSM-PTPVendor

Approve Requisition END

Warehouse /User Finance

Requisition Sourcing & Approval

PO approval & send PO to

Vendor

Receive PO & Acknowledge

PO

Chase for PO Acknowledgement &

Delivery follow up

Deliver goods /services

Send invoice

Goods receipt3 way

matching

Payment

START

Procurement ProcessOverview

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Sample Email from LGSM to follow up order confirmation

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Sample PO, which vendor feedback after got Linde PO or email

follow up from LGSM

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LGSMPTP Procurement

In Country ProcurementFunctional End User / Requestor

• Material Master creation

• Shopping Cart (SC) creation in SRM

• Purchase Requisition in SAP

• Approval of SC /PR

• Follow up of approval in SRM

• Inspection of received items

• Confirmation of Goods Receipt

• Recommends new vendor, if any

• Request for Vendor master creation

• Follow-up on Vendor

acknowledgement

• Open PO Delivery follow up

• Vendor creation and changes

• Matching of Invoice and PO

• Payment follow up (SOA)

• Sourcing, RFQ/RFI/Tender

• Commercial negotiations

• Conversion of SC to PO

• Transmission of PO to Vendor

• Amendment of PO (Quantity,

Delivery Date, Commercial

Terms, Scope of Work)

• Request / Approve for Vendor

master creation and/or changes

• Negotiate and agree PO changes

Local Country TeamShared Service Centre

(Manila)

Procurement ProcessOverview

All POs are transmitted via email to the supplier• Maintain a valid email address• Inform LGSM-PTP team ([email protected]) if there are any changes to the email address

Emergency PO (EPO) is used for cases when formal PO cannot be issued• Urgent purchase of item/service during weekends, plant breakdown, etc. • User will give the EPO No. THEPXXXX for reference once he/she contact vendor for start the service and deliver the product. • Supplier can reference that number into Invoice but has to fill in the Linde’s employee name, who gave that number. • Supplier can process bill placement by doesn’t have official PO for this case.

Acknowledgement of PO upon receiving email • Supplier should check and verify contents of PO• Inform Procurement team immediately if any disputes i.e. price, description, delivery terms, etc.• Acknowledge PO via email if all details in PO are accepted

Do not deliver items or provide any service without receiving a formal Purchase Order (PO)• No PO; no Delivery

Procurement ProcessImportant Instructions to Follow

Procurement ProcessSample PO

Important: 1. All items listed in this Order are subject to Linde's General conditions of Purchase for Asia (the "Conditions"). These Conditions can be found at www.the-linde-group.com/purchasing-terms and a hard copy can be made available to you upon request.2. The goods & services are to be supplied in accordance with the delivery instructions provided on the Order3. All correspondence, including invoices, delivery notes, packing lists etc, must quote the relevant Order & Item No.4. Kindly confirm your agreement to supply in accordance with the Conditions. In default of any such confirmation, the provisions of Condition 2.2 shall be deemed to apply.

Procurement ProcessPO Terms & Conditions

Delivery & InvoicingFollow these instructions for timely settlement

All invoices should clearly indicate the PO number• No PO; No Invoice

Original Invoice should be sent centrally to Linde P.O. Box only• Refer to PO for the address details • Submit copy of Invoice if there is a request from end user/site manager

Matching of Invoice and Purchase Order• Only one PO number should be reflected in the Invoice • Ensure details in Invoice matches PO information e.g. Description, Unit of Measure, Unit Price

Submission of Statement of Accounts (SOA)• Suppliers are recommended to submit SOA every 3 months• Linde Thailand will not entertain any payment claims to invoices that are more than 3 months

Supplier Payment • All payment related enquiries should be directed to

Tel : +63 2 784 0900 / [email protected]

Adobe Acrobat

Document

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Billing & Payment Process

Invoices always required for 2 sets

Billing process begins from Invoices received by our scan room. There are 1 methods that local

supplier should follow.

�Sending Invoice by post Reference address in letter (Slide: Back up document)

Invoice

Billing and payment

Linde Post address

(PO box 12)

Scanning

room scan

invoices

AP in

Philippines

matching

invoices

Payment

Address for invoice billing : ตู้ ป.ณ.12 ที�ทําการไปรษณยี์ อาคารบางนาทาวเวอร์ 10541

Billing Documents : PO, Invoices, Original Tax Invoices, Copied Tax Invoices,

Receipts (for vendor choosing wire transferred method)

Original Deliver Order/Original Receipt Order.

Important

- All billing documents must be printed by computer or typewriter.

- All related figures of invoices, POs should be clearly shown : no any stamping, signatures lap over.

- Correctness of Product description, Quantity, Unit, Price.

- Invoices Paper Size in A4 only.

- Cheque Distribution Center : The Hong Kong and Shanghai Bank (HSBC)

Able to pick up for 90 days after notification.

- Payment Statue Checking : Website or [email protected]

- In case billing documents incomplete or rejected : contact no. 02-338-6137

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Bill Placement Process

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Bill Placement ProcessStatus Checking

Website : http://appl.linde.co.th/

Bill Placement

Report

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Bill Placement ProcessAdvice Notification

Automatically notify via e-mail in form of payment advices.

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Table of Linde Contact Person

(Require each specific issue)

No Relevant issue Roles Contact Emails

1 a) Quotations, Negotiation, Credit note, Claim, Commercial Termb) Any other issue related to PO (e.g. Discrepancy, error in price, Incoterms etc.)

Procurement In Country : Strategic Buyer

[email protected] : Merchant & [email protected] : Deliver & C&[email protected] : Indirect & Government [email protected] : Plant & Production, Energy

2 a) Send PO confirmation & acknowledgementb) Update delivery date before the goods is ready

LGSM-Process to Pay (PTP, Philippines)

[email protected]

3 Goods ready to be shipped. ContactProcurement Import team for thefollowing requirements:a) Request authority to ship out –Check validate of import Licensesb) Sent Shipping Documents (AWB, B/L, P/L)

- Procurement in Country- GIST

[email protected]

[email protected]

4 Placing Invoices (for payment) AP Outsource Scanning Persons

[email protected]@linde.com

5 Check Payment status LGSM-Helpdesk (Philippines)

[email protected]

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