RFx and Auction response creation Guidelines for Supplierschermk.severstal.com/upload/iblock/640/640...USER GUIDE ON BID SUBMISSION ... Severstal group arranges the purchasing process

USER GUIDE ON BID SUBMISSION FOR PAO SEVERSTAL PURCHASING PROCESSES

File: Инструкция пользователя по подаче предложений_upd_EN (3) Page 1 of 30

USER GUIDE ON BID SUBMISSION

RFx and Auction response creation

Guidelines for Suppliers



Contents

1 Introduction .......................................................................................................................................... 3

2 Glossary ................................................................................................................................................ 4

3 Technical requirements to the user's workstation ................................................................................. 5

4 Supplier bid submission ....................................................................................................................... 6

4.1 SRM access ................................................................................................................................. 6

4.2 Search for a purchasing process .................................................................................................. 6

4.3 Viewing a purchasing process .................................................................................................. 11

4.4 Creation of RFx response .......................................................................................................... 15

4.5 Bid saving and submission ........................................................................................................ 24

4.6 Editing a saved bid .................................................................................................................... 25

5 Bid submission to auction (eAuction) ................................................................................................ 26

5.1 Auction search ........................................................................................................................... 26

5.2 Viewing an auction ................................................................................................................... 27

5.2.1 General auction data ............................................................................................................. 27

5.2.2 Notes and attachments .......................................................................................................... 28

5.2.3 Auction items ........................................................................................................................ 28

5.2.4 Auction bid creation ............................................................................................................. 29

5.2.5 Bid submission...................................................................................................................... 30



1 Introduction

Severstal group arranges the purchasing process at SAP SRM (Supplier Relationship

Management) electronic purchasing platform. Getting access to SRM system gives the

possibility to potential suppliers to complete qualification and participate in Severstal purchasing

processes (tenders, RFX, reverse auctions).

Access to the system is granted to potential suppliers who have passed a self-registration

procedure. Self-registration includes the following steps:

1. Complete and send a self-registration form;

2. Get initial login, password and URL-links to the personal account;

3. Create/update supplier's/contact person's account;

Suppliers who have successfully completed qualification can participate in purchasing

processes. Qualification includes the following steps:

1. Get URL-link for a qualification form;

2. Fill in and send the qualification form together with the requested documents;

3. Clarify the qualification form, if necessary;

Severstal suppliers, operating at the time of SRM productive start-up, will be automatically

registered and qualified. A notification with an initial login and a password will be sent to e-mail

address of the supplier's contact person.

A supplier may have several contact persons. All of them will have a personal login and a

password to access the system.



2 Glossary

Tender is a request by buyer for a pricing proposal pertaining to specified goods or

services.

There are two types of tenders:

Restricted tender is for preferred suppliers only. This tender is viewable on the website

only by the suppliers who have received invitations from the purchaser and who are listed on tab

Participants.

Public tender is available for all qualified suppliers. A public tender is viewable on the

website by all suppliers registered in the system. Independently or by purchaser's invitation,

suppliers submit their bids for a public tender.

A tender is a two-stage purchasing process when suppliers submit their bids in two parts.

The first of them contains a technical proposal, while the second one contains a commercial

offer.

Request for quotations (RFQ) is a sourcing method when potential suppliers are

requested to give their quotations for certain goods. In this case the goods are characterized by a

standard specification and a particular volume; therefore, all potential suppliers submit

quotations for the same goods.

Single source purchase is a process with the sole supplier participating in tender. Only

restricted tender can be used.

Auction is an on-line price reduction procedure.

cFolders is system used for sharing attachments.

Collaboration is cFolders object used for shared documents processing. Within

collaboration framework a collaboration structure is created: folders, work spaces and

documents.

Public area is a collaboration area accessible for all participants;

Working area is a collaboration area assigned to a participant for individual work.



3 Technical requirements to the user's workstation

To be able to operate in the SRM, please ensure that the following requirements are met:

1. Internet-browser:

Microsoft Internet Explorer 7.0, or higher

Safari and Firefox-browsers can also be used.

2. Internet Explorer settings:

- SSL shall be allowed;

- for Internet Explorer 10 and higher it is necessary to place a login link into the local

intranet for browser security properties;

- SRM links shall be added to the list of trusted websites;

3. Internet connection;

4. Proxy-server:

If Internet is accessed via a proxy-server, please ensure you are allowed to surf the

following links (port 443 shall be open);

https://procurement.severstal.com

https://procurement-srv.severstal.com/ros_ext?

5. Pdf-documents

To be able to work with pdf-documents Adobe Acrobat Reader 6.0 and higher is required.

https://procurement.severstal.com/

https://procurement-srv.severstal.com/ros_ext



4 Supplier bid submission

4.1 SRM access

To access SRM, follow the URL-link https://procurement.severstal.com/irj/portal

Enter a login and a password of the supplier's contact person:

If you forgot your password, please follow Password Reset link on the login screen or use

a feedback form on the website (http://chermk.severstal.com/suppliers/38594/index.phtml) or

mail [email protected] to contact the support service.

4.2 Search for a purchasing process

Once a purchasing process is published, e-mail notifications are automatically sent to

suppliers provided they had received invitations. A Supplier receives the following notification:

Figure 1. Bid invitation

An RFx can be accessed from the supplier's personal account. The supplier's personal

account homepage is shown in Figure 2.

https://procurement.severstal.com/irj/portal

http://chermk.severstal.com/suppliers/38594/index.phtml

mailto:[email protected]



Figure 2. Supplier's personal account

To search current purchasing processes, click on Tenders and Auctions (1) link in tab area.

A report on purchasing processes currently available in SRM will open:

Figure 3. Search for a purchasing process

At first run there will open a list of existing purchasing processes, both past and active. To

restrict a list of purchasing processes, set the searching criteria.

First, select the processes you wish to search for: tenders (1) or auctions (2) in SRM. Then,

select a query: all, current tenders/auctions, completed tenders/auctions or closed

tenders/auctions:

All – all purchasing processes will be displayed in the search results.

Published – active purchasing processes available for bid submission (bid closing date is

not due).

Tabs field

Navigation panel

1

RFx (events) field

1

4

2

3



Completed – purchasing processes with a due bid closing date: it is no longer possible to

submit a bid.

Ended – purchasing processes which have ended (a contract is signed or a purchasing

process is cancelled).

Purchasing process IDs which satisfy search criteria will be displayed below.

Click “Refresh” button to get search result.

Also, search engines with specific criteria can be used for a more detailed list of current

purchasing processes. To enter search criteria, use View Quick Criteria Maintenance button (3).

Criteria available for entry will be displayed:

Figure.4 Quick criteria maintenance

You can set an event ID (a purchasing process system number, if known), event status

(click on the field to select current/completed/closed tenders from a drop-down list - this function

is available only in All-query, in other queries an event status is already typed), creation date

(click on icon to select a date from a calendar), deadline date flag (a date when a bid

submission period expires), bid status (click on the field to select it from a drop-down list).

Once you have entered criteria, press «Apply» button (1). Search results will be displayed

below.

To open a bid/event of interest, click on its ID or press a grey square next to the event ID

(1). A line with a targeted event will be highlighted in orange color. Then click on View Event

(2):

Figure 5. Viewing purchasing process

1

1

2



It is possible to filter columns of the list with current events. To do this, click on a

Using icon you can adjust the list appearance, rearrange columns, hide unnecessary

columns, etc.

After you press button , the system runs into a list parameter maintenance dialog where

you automatically get into the setting of the list standard view. It can not be modified, so Save

button is not active:

Figure 6. Setting purchasing process list parameters

On Box Selection tab you can select boxes to be hidden or displayed. Displayed boxes are

shown in the right column; hidden boxes are shown in the left column. To move a box into the

Hidden column, highlight it (1) and click on Remove (2). To display a box, highlight it in the left

column (Hidden) and click on Add (3) – the box will appear in the Displayed Columns.

A group of buttons "Change Sequence" (4) is used to change the sequence of list boxes.

Button is used to scroll to bottom; button is used to scroll down one level.

On Sort Tab you can set a standard sorting for list boxes:

Figure 7. Setting list parameters (2)

1

3

2

4

1

2

3

4



For this purpose, select a name of the box to be sorted out (1), click on Add (2) – the name

will move to the left column (3). Then select a sorting direction (4).

In a similar way Calculation, Filter and View settings are made.

Click Save as (1) to save the introduced changes:

Figure 8. Saving list parameters

Enter a name to save it in Description field (1):

Figure 9. View saving

Tick Initial View (2) if you want to always display this view at opening. Then press ОK.

A view is saved.

Your current view will be displayed here (1):

1

1

2



Figure 10 Display the view

Click to switch to other view.

4.3 Viewing a purchasing process

After you have found a required purchasing process and pressed its ID or View Event

button, a new window with a tender will open:

Figure 11. Viewing a purchasing process

Time remaining for bid submission is indicated in the header.

Let's study in detail the information in RFx tabs.

I. “RFx Information” Tab

(1) “RFx Parameters” sub-tab (see figure above)

This tab contains information the following information:

- Start date - start date of bid response reception

- Submission deadline – end date of bid response submission

- Opening date – date when Buyer opens responses

- End of bidding period – response expiry date

- Currency – currency you should use in response

Here, you can also find contact data of Requester - the person responsible for the purchase.

1

1



To check Buyer contact details, highlight “Requester” row (1) and click “Details” (2).

Details contain Buyer’s name, e-mail and phone number

Figure.12 Requester details

(2) Questions Sub-tab

Figure 13. Viewing questions

This sub-tab contains purchaser's questions which you should answer during the bid

submission. Questions represent evaluation criteria and sub-criteria. Your bid will be evaluated

based on the answers. Column Weight provides significance of the given evaluation criterion.

II. “Notes and Attachments” Tab

Here you can find different text notes and requirements defined in the purchasing process.

To open a text, click on its name (1). An information window will open. Press Cancel to exit.

1

2

3

Manufacturer name

Payment terms

Means of transport



Figure 14. Viewing comments and suggestions

Here you can find a reference to a folder with purchasing documents:

Figure 15. Viewing tender documents

Use Collaboration... reference to open a documents folder.

When you enter the folder for the first time, a CFOLDERS license agreement will pop up.

You must accept its terms and conditions by pressing ACCEPT in the bottom of the screen:

1

2

1



Figure 16. Acceptance of cFolders use conditions

Then the Collaboration folder will open:

Figure 17. Opening Collaboration folder

Click on the folder (2) or select a required folder in the drop-down list (1) (documents are

located in Public Area). A folder with a displayed list of attached documents will open. To open

a document, click on its name (1):



Figure 18. Viewing attached documents

III. “Items” Tab

In this tab you can view purchase items. The lines contain information on the required

quantity and measure units.

Figure 19. Viewing purchase items

4.4 Creation of RFx response

To create a bid response, click “Register” first.

Figure 20. Registration in the purchasing process

Then press Refresh . "Create Response" button will appear:



If a purchaser has identified you as a potential participant of a purchasing process and has

sent you a relevant notification (e.g., in case of a sole-source purchase or any other restricted

purchase), then the registration step is omitted, and you can directly submit a bid (create a bid in

the system).

You can also initiate bid creation from a general event list, see fig. 26.

Select a line with a required event (1) on the first page and click on Create Response (2):

Figure 21. Bid creation from the list

Please note that if the Create Response button is not available, it means you are not added

as a participant, however, the purchasing process is public and a bid closing date is not due, that

is why you can see it. To submit a bid in this case, use Register button.

After you have registered, you will see a data message about registration

and the Create Response button will be available (enter again the event or click on Refresh

in your browser).

A Supplier's contact person may submit only one bid in framework of one purchasing

process before the established bid closing date.

After you press , a Bid electronic document will be created in the system. This

document contains tabs with the relevant fields to be filled in. Let's study each tab in detail:

(1) “RFx Information” Tab

(2) “Basic Data” sub-tab

1

2



Figure 22. Purchasing process data

Validity Period displays a quotation validity period. The Supplier may not edit this field.

Contract total value without VAT is the estimated contract value.

Terms of payment– this field contains information on the required payment terms. If a

purchaser allows a supplier to modify payment terms, this field would be available for editing.

If a purchaser has defined the required values of payment terms and Incoterms, a supplier

may not modify them.

Incoterms – enter Incoterms code from the reference book by clicking on :

Figure 23. Searching supply terms

Indicate location, if necessary:

The Incoterms field is uneditable by a supplier if supply terms have been predefined by a

purchaser.

(3) “Questions” Sub-tab

Questions Sub-tab: answer questions and give your comments, if possible.



Figure 24. Answering questions about the purchasing process

If a question is marked with an asterisk * (mandatory), it has to be answered in order to be

able to send a bid.

(4) “Notes and Attachments” Sub-tab

This sub-tab contains notes and attachments (text notes (1)). Click on the reference to fill

them in (1)):

Figure 25. Comments input

A text-input box will open:

Figure 26. Comments input (2)

Input your text (3) and click on OK (4).

Also, any required documents can be attached here. To attach a document, please open

Collaboration folder and click on Bid Number... reference (2) fig.25.

1

2

1

2



The Collaboration folder and your personal Bid Number... folder will open:

Figure 27. Files attachment

Please check the fields (1): bid ID must correspond to your bid ID. A supplier has access

only to its documents folder and to the Public Area containing purchasing documents.

To attach any documents use Create button (2). In the appeared window select Document

type. You should choose a :

Figure 28. Files attachment (2)

A new window will open. Type file name in field Name (1) and its description in field

Description (2) – if required, click Next to select a file:

1

2




Click on Select File (1). In the explorer window find a required file and click on Open. In

Path field (2) a file name will appear. Then press “Save” (3):


The document is attached:


Now close this sub-tab or press Exit to quit.

II. “Items” Tab



Items tab contains information on the items to be supplied. In case a customer has

predefined the possibility to change the specified scope of supply, a supplier may indicate a

quantity he/she is ready to supply in field Submitted Quantity (3).

Figure 52. Changing the proposed quantity

A detailed information on the item is available by clicking on its ID (0001, 0002, etc.) or

by highlighting the item (1) and clicking on Details (2).

Figure 33. Input of detailed information on the item

Here you can input your material ID (or its distinctive name) in field Supplier's Product ID

(4) and the submitted quantity (3).

On Notes and Attachments sub-tab you can find comments on the item.

To go to another item, repeat the steps above or use transition arrows:

A customer may also predefine a possibility or non-possibility for a supplier to propose

alternative products as a substitute for materials specified in the request for proposal. Thus, if

substitute materials are possible, then Add New button will be active on the Item Tab:

3

2

1

4

3



Figure 34. Proposal of an alternative, additional or substitute material

A substitute item – a new item will be added (instead of a required item which cannot be

supplied) with a reference to the item which was defined at the moment of creation (quantity of

the the old item will be zeroed and not available for further modification):

Figure 35. Proposal of a substitute material

Alternative item – an additional item will be added with the reference to the designated

one. Quantity will be indicated for both items (delivery of any of the two items is proposed):

Supplement item – a new item will be added, to be delivered in addition to the initial item:

Figure 36. Proposal of supplement item

Proposal of alternative, substitute or supplement items is available in case a purchaser has

predefined the possibility to modify bids.

After bid modification a list of items is as follows:

2

1



Figure 37. A bid with an alternative or substitute item

A connection between the items can be seen in the detailed item data:

Figure 38. A connection between the initial and additional items

A new item – a supplier may propose a new item not related to the items required by the

customer (in case the customer has predefined the possibility for the supplier to add new items).

If necessary, the added line can be deleted (Delete button):

Figure 39. Proposal of a new item

III. Summary Tab

Summary tab displays information on the created bid:



Figure 40. Purchasing process summary

Thus, in the bid a supplier has the following possibilities: specify its terms of supply and

payment, if so allowed by the purchaser; change a scope of supply; propose substitute or

alternative items; attach documents.

4.5 Bid saving and submission

If having introduced all the necessary modifications you are still not ready to submit a bid

(i.e. its further processing is expected), you can save the bid by using a Save button (1).

Figure 41. Saving a bid

In such a case the bid is considered NOT SUBMITTED and DOES NOT participate in the

purchasing process (the bid status is "Saved" (3)).

To send (submit) a bid, click on Submit (2) (the bid status will change for "Submitted").

After you have sent the bid, its status will change for "Submitted" also in the general

documents list:

Figure 42. Viewing bid status

The following bid statuses are configured in the system:

1

3

2



Submitted – a supplier has submitted a bid.

Withdrawn – a supplier has cancelled the submitted bid.

Returned – a purchaser has sent back a supplier's bid. In this case a supplier may

introduce changes in its bid by using Edit button.

Closed – after having processed the submitted bids or having created a contract in the

system, a purchaser has closed the tender and the bids are no longer available for processing.

Rejected – a purchaser has declined a supplier's bid.

Accepted – a purchaser has accepted a supplier's bid.

4.6 Editing a saved bid

Editing of a created bid is permitted only in the Saved status. After the bid is submitted, it

is no longer available for processing.

Saved bids can be edited until the bid closing date. For making any changes please open

the Bid in view mode and click on Edit:

Figure 43. Editing a bid

Having introduced the changes click on Submit (or Save for temporary saving).

It is possible to edit a bid if a purchaser sends it back for finalization (a bidding period

shall be extended). The document will have a "Returned" status.



5 Bid submission to auction (eAuction)

5.1 Auction search

After publishing an auction, invitations will automatically be sent by e-mail to auction

participants. If you are invited to an auction, you will receive a notification by e-mail as in fig.

44.

Figure 44. Auction invitation

An auction can be accessed from the supplier's personal account. For this purpose, go to

RFx and Auctions, and view the available auctions in section eAuctions.

Figure 45. Auction search

In Web-auctions section it is possible to choose the following groups of auctions:

All - all web-auctions where a supplier is a participant are displayed.

Published – all current auctions (not closed). An auction has a "Published" status after its

publication in the SRM. An auction with this status is available to participants for viewing. After

Tabs field



you launch an auction it will have an "Active" status. Participants may submit their bids for

auctions with such status.

Ended – all closed auctions. An auction has a "closed" status if the auction end date and

time is reached.

Depending on the reference you choose, auctions will be selected according to their current

status. Press Refresh to update the selection.

A list of auctions is displayed in the table. Sorting by table column is available. A table has

an event number, event description, start date, end date, participant's bid number and bid status.

A detailed parameter setting of the list output is described in 4.2.

5.2 Viewing an auction

Click on the auction ID in the list for a detailed view and checking the auction terms and

conditions. Click on the tabs to find information about the purchasing process timeframes, list of

the purchased items, etc

5.2.1 General auction data

1. On sub-tab Auction Information Auction Parameters the following parameters can

be listed (fig. 46):

Auction Name – name of the auction.

Start date – auction opening date and time.

End date – auction closing date and time.

End of Binding Period – a date after which a bid becomes outdated for Severstal

Bid Decrement – absolute value or percent value.

Extension Period – a time period in minutes for which an auction will be extended in

case a supplier submits a bid within a non-bid period.

Number of extensions – a number of defined automatic extensions.

Sequential Line Items – items bargained in sequence at the auction.



Figure 46. General auction data

5.2.2 Notes and attachments

You can study notes and attachments on sub-tab Auction Information Notes and

Attachments

For browsing any attachment or a note, click on the relevant reference with a name.

5.2.3 Auction items

On Items Sub-tab the following information on the subject of an auction is available:

Product ID – product ID from the customer's company reference book.

Description – product name.

Quantity

Unit – unit of measure (pcs, m, etc.)

Start price – initial price of the item. As a general case, bids with a price higher than a

starting price are not acceptable.

Bid decrement amount – bidding step: actual amount or a percent rate, depending on

the auction parameters. Every subsequent bid shall be lower than the previous one for this

amount or percent.

Notes – number of the purchaser's text notes to the item.

Attachments – number of files attached by the purchaser to the item.

In the item view highlight a relevant line and click on Details to view detailed item data.



5.2.4 Auction bid creation

For creating a bid it is necessary to select an auction.

Bid submission is carried out on the basis of an auction which can be accessed by using a

Live Auction button.

Figure 47. Auction running in real time

After you enter the auction in real time, a message with auction terms and conditions will

be displayed on the screen. Please read participation terms and conditions and click on Accept.

Then, Live Auction Cockpit web-application will run, fig. 48.

Figure 48. Live Auction Cockpit

1) Header Data. This area of Live Auction Cockpit interface contains the basic auction

information: Auction name and number, start and end dates, time remaining



2) Item Data. This area of interface contains a line item table. The table includes all

auction items and the basic data:

Quantity – purchased quantity.

Unit – unit of measure defined for an item

Price Unit – quantity upon which participant's bid price is based, e.g., 10 pieces.

Start price – a reserve bid price for an item. It is used in the system for evaluation of

bids received from suppliers.

My bid – your final bid.

My bid value – the cost of your bid per a specified quantity.

Bid price – a field for a bid price.

3) Information about the bids. This area of Live Auction Cockpit includes the following

elements:

Details – details for the item currently selected in the line item table.

History – the bid history for the item currently selected.

Charts – bid price and volume variation graphs for the items, as well as bar charts of

the best bids among auction participants.

4) Chat and system messages panel. Purchase manager's messages and data messages

automatically generated by the system are available for viewing in this area. Here, you can also

send a message to a purchaser. Print your text in the relevant entry line and click on Send. An

auction participant can not send messages to other participants. An auction participant cannot

view messages sent by other participants to the purchaser.

A purchaser may intermit the auction by using Pause button. In this case the auction status

will change from Active to Stopped.

Information about the auction resumption will be displayed in chat and system message.

The auction may be extended by the purchaser. Information about the auction extension

will be displayed in the system message.

5.2.5 Bid submission

To submit a bid it is necessary to input item prices in field Bid Price and click on Submit.

A bid submission window will appear. After you click on OK, the bid will be submitted.

The best bid among auction participants will also be displayed in Live Auction Cockpit,

fig. 48.

After the auction close date the best bid from every auction participant will automatically

transfer from Live Auction Cockpit into the auction document.

The bid can be accepted or rejected by the purchaser. If a bid is accepted, its status in the

supplier's interface will change to Bid Accepted. If a bid is rejected, its status will change to Bid

Rejected.

Documents

RFx and Auction response creation Guidelines for Supplierschermk.severstal.com/upload/iblock/640/640...USER GUIDE ON BID SUBMISSION ... Severstal group arranges the purchasing process