Supply Chain Management, which covers procurement, and logistics and inventory management, is another critical business enabler for Tatweer.
Tatweer's total annual spend in 2010 was US$ 345 million, involving 200 contracts and 1,300 purchase agreements. Total commitments, including contracts, purchase orders and service orders, were US$ 1.1 billion. During the year, the inventory inherited from Bapco at a cost of US$ 35 million was successfully regularized, with total inventory approaching US$ 50 million at the end of 2010.
To further enhance SCM capabilities, the Tatweer Business Improvement Project (TBIP) will be introduced in 2011. This is an Oracle-based system which will integrate supply chain, financial control and other business systems, and also enable the introduction of performance management and measurement of contractors and suppliers.
Committed expenditure
Contracts and commitments