NESMA

1. Overview

Purpose

Define the commitment of Supply Chain (internal service provider) to deliver reliable and efficient procurement, logistics, and materials management services to Operations (internal customer).

الهدف

تحديد التزام سلسلة التوريد (مزود الخدمة الداخلي) بتقديم خدمات المشتريات واللوجستيات وإدارة المواد للعمليات (العميل الداخلي) بشكل موثوق وفعال.

Scope

Requisition to Order
Procurement
Vendor Management
Logistics
Equipment & Vehicles
Materials Handling
Inventory
Strategic Sourcing

2. Definitions (Glossary)

Term Definition (EN) التعريف (AR)
Business Day Working day per company calendar يوم عمل حسب تقويم الشركة
Start Event Timestamp when request becomes complete and valid in system الطابع الزمني عندما يصبح الطلب مكتملاً وصالحاً في النظام
Stop Event Timestamp when service is executed (final status) الطابع الزمني عند تنفيذ الخدمة (الحالة النهائية)
Stop-the-clock Timer pause while awaiting requestor/customer action إيقاف المؤقت أثناء انتظار إجراء من الطالب/العميل
Age Business days from Start event to report date (excluding Stop-the-clock) أيام العمل من Start event إلى تاريخ التقرير (باستثناء Stop-the-clock)
Cycle Time Business days from Start event to Stop event (excluding Stop-the-clock) أيام العمل من Start event إلى Stop event (باستثناء Stop-the-clock)
PR Purchase Requisition طلب الشراء
APR Approved Purchase Requisition طلب شراء معتمد
PO Purchase Order أمر الشراء
POA Vendor Acknowledged Purchase Order أمر شراء معترف به من المورد
POCR Purchase Order Change Request طلب تغيير أمر الشراء
OBE Over-Budget Exception استثناء تجاوز الميزانية
SC Stock Confirmation تأكيد المخزون
Internal OTIF Percentage of internal transfers delivered on time and in full نسبة التحويلات الداخلية المُسلمة في الوقت المحدد وبالكامل

3. Measurement Rules

Time Basis

Business days per company calendar

أيام العمل حسب تقويم الشركة

Counting Window

Use Start→Stop events; exclude Stop-the-clock periods

استخدام أحداث Start→Stop؛ استثناء فترات Stop-the-clock

Reporting Cadence

Monthly updates; daily drill-down for operations as needed

تحديثات شهرية؛ drill-down يومي للعمليات حسب الحاجة

4. Common KPI Dictionary

4.1 On-time Rate [%]

Target: ≥95%

Measures delivery reliability within agreed SLA windows

On-time rate = (Items completed within SLA window ÷ Total completed items) × 100

Higher is better

4.2 Cycle Time (P50/P90)

Informational

Tracks processing speed and tail behavior

Median (P50) and 90th percentile (P90) of Cycle time for completed items

Lower is better

4.3 Age (Open Items)

Informational

Reveals current backlog pressure

Age = Business days from Start to report date for open items

Aging Buckets: 0-1, 2-3, 4-5, ≥6 business days

4.4 Volume Processed

Informational

Context for performance rates and capacity planning

Count of completed items in period

Exclude test/rejected/cancelled items

4.5 Exception Rate [%]

Informational

Tracks items requiring manual intervention

Exception rate = (Items flagged with exception ÷ Total completed) × 100

Lower is better

5. Procurement SLA (Requisition to Order)

Procurement

5.1 PR Processing

Service Standard: Approve PR or provide feedback within 2 business days from complete request

معيار الخدمة: الموافقة على PR أو تقديم ملاحظات خلال ٢ أيام عمل من الطلب المكتمل

Primary KPI: On-time PR decision ≥95%

Supporting KPIs: Cycle time (P50/P90); PR quality rate (first-time complete); APRs not converted to PO >30 days

5.2 PO Processing

Service Standard: Issue PO and obtain vendor acknowledgment within:

  • 30 business days from APR (for value ≥ SAR 500K)
  • 21 business days from APR (for value < SAR 500K)

معيار الخدمة: إصدار PO والحصول على إقرار المورد خلال:

  • ٣٠ يوم عمل من APR (للقيمة ≥ 500K ريال)
  • ٢١ يوم عمل من APR (للقيمة < 500K ريال)
On-time PO issuance ≥95%

Supporting KPIs: Cycle time (P50/P90) PR→PO; Cycle time (P50/P90) PR→POA

5.3 POCR/OBE Approval

Service Standard: Approve POCR/OBE within 3 business days

On-time approval ≥95%

Supporting KPIs: PO change rate; Exception rate (CEO)

6. Vendor Management SLA

Vendor Mgmt

6.1 Performance Evaluation

Service Standard: Evaluate each:

  • 6 months (for subcontractors)
  • Annually (for others)
On-time evaluation ≥95%

Supporting KPIs: Vendors <70% score; Operations 1-week response rate; Blacklist approvals

6.2 Issue Resolution

Service Standard: Resolve issue within 15 business days from complete request

On-time resolution ≥95%

Supporting KPIs: Cycle time (P50/P90); Same-day clarification rate (Operations); Recurrence rate; Lessons learned

7. Logistics SLA

Logistics

7.1 Vehicle Provisioning

Service Standard: Provide vehicle within 2 business days from approved MenaME request

On-time provision ≥95%

Supporting KPIs: Cycle time (P50/P90); Up-to-date usage database

7.2 Equipment Request Approval

Service Standard: Approve request within 1 business day of receipt

On-time approval ≥95%

Supporting KPIs: Approval cycle time (P50/P90); Volume processed

7.3 Equipment Delivery

Service Standard: Deliver equipment within:

  • 2 business days (within city)
  • 3 business days (from approval)
On-time delivery ≥95%

Supporting KPIs: Delivery cycle time (P50/P90); First-time ready rate; Early utilization (7-day)

8. Warehouse & Material Handling SLA

Warehouse

8.1 Storage Compliance

Service Standard: Apply storage recommendations from company/vendor/manufacturer

Storage compliance ≥98%

(Audit pass rate)

8.2 Storage Reporting

Service Standard: Report per Annex A

On-time availability =100%

8.3 Stock Confirmation

Service Standard: Issue SC reply within 1 business day from request

On-time SC reply ≥95%

Supporting KPIs: SC cycle time (P50/P90); Pending SC aging; Incident reporting timeliness

8.4 Material Movement

Service Standard: Deliver materials within 2 business days from transfer approval

On-time transfer delivery ≥95%

Supporting KPIs: Delivery cycle time (P50/P90); Internal OTIF

8.5 Incident Reporting

Service Standard: Report incidents immediately (and no later than end of business day)

On-time incident reporting =100%

Supporting KPIs: Incident reporting cycle times (P50/P90); Damage-on-handling rate

8.6 Scrap Removal

Service Standard: Remove scrap within 3 business days from request

On-time scrap removal ≥95%

Supporting KPIs: Removal cycle time (P50/P90); Recycling/recovered value

9. Reporting and Communication

Monthly KPI Report

Monthly report per Section 5, distributed to Operations and Leadership

Daily Operational Drill-down

Available to support problem resolution

Preferred Format

Automated templates, reports, and dashboards where possible

10. Escalation and Meetings

Escalation Timeline

Escalate significant risks or delays within 24 hours of discovery (written notice)

Monthly Coordination Meeting

Monthly meeting led by Operations with Finance participation to review performance, issues, and improvements

Annex A: Storage Reporting Particulars

# Report Description
1 Material days in custody Material aging, materials delivered and not transferred to sites
2 Theft/damage cases Theft/damage cases and value
3 Inventory Inventory (quarterly), with cycle count variance
4 Free stock list List of free stock items available
5 Average period for SC Average period for SC reply and delivery
6 Material from free stock Materials delivered from free stock per project
7 Retained material summary Summary of materials retained from projects as free stock
8 Cumulative scrap list Cumulative scrap list and value per project

Quick Links to Dashboards

Procurement Dashboard

PR & Vendor Evaluation

Logistics Dashboard

Transport & Equipment

Warehouse Dashboard

Inventory & Materials

NESMA Infrastructure & Technology

Document ID: NIT-SCM-SLA-KSA-11/10/2025-000-v1.0A