Cost Effective Oil & Gas Procurement Strategies

• Type
  Course
• Price
  SGD 4,595
• Event Code
  PST0174
• Instructor
  Andre Gafford
• 

Date	Duration	Location
14-May-12	3 days	Kuala Lumpur, Malaysia	-

Course Overview

 

 

The procurement process in any oil and gas organization is crucial in ensuring precise delivery of supplies, materials and services to the relevant units within the organization in the least possible amount of time and cost incurred. A single mistake may lead to a disruption in the overall supply chain management of the organization.

 

This procurement masterclass will facilitate a thorough industry understanding of strategic procurement and their value creation within the supply chain management. Participants will learn to apply appropriate analysis of each stage in the procurement process and develop differentiated purchasing strategies and understand the relationship continuum between buyers and sellers.

 

The course will also focus on the development of new procurement ideas and techniques reinforced by targeted strategic development exercises and practical case studies as well as the instructor’s personal examples.

 

 

Course Objectives:

 

 

This course is designed for:

 

• Procurement Executives,Officers and Specialists
• Procurement Coordinators and Analysts              
• Contract Executives and Specialists                     
• Supply Chain Executives                                      
• Sourcing Executives and Analysts                       
• Expeditors

• Materials and Supplies Buyers

• Procurement, Project and Material Managers

• Operational Managers

• Supply Risk Management

• Planning and Scheduling Staff

 

PLUS anyone who is responsible for, and involved in the procurement and sourcing process of the supply chain.

 

 

Course Outlines

 

 

DAY 1

 

 

In today’s uncertain and turbulent markets, supply chain vulnerability has become an issue of significance for many companies. As supply chains become more complex as a result of global sourcing and the continued trend to ‘leaning-down’, supply chain risk increases. The challenge to business today is to manage and mitigate that risk through creating more resilient supply chains.To this end, during this class we will gain a clear understanding of the oil and gas industry and what influences procurement decisions.

 

We take a look at the Oil and Gas industry as a whole and evaluate how the industry is organized and what role each division plays in the company. Then we investigate the internal and external factors that drive decision making in an organization. Finally we discuss how supply chain uses those drivers and works with internal/external customers to achieve corporate goals and objectives.

• Procurement Trends in the Oil and Gas Industry
• Upstream sector
• Downstream sector
• Midstream sector
• Critical Business Drivers and Inflfluences on Procurement Process
• Political influences
• Supply and Demand
• Impact of Globalization
• Understanding Procurement / Supply chain within your Organization
• The goal of supply chain
• Organization structure Vs. Supply Chain Structure
• Improving the Communication Process
• Internal (Procurement and Internal customer)
• External (Procurement and External customer)
• Gaining alignment
• Managing Relationships between Vendors/Suppliers and Procurement
• Supplier Management
• Supplier Selection and Partnership Development
• Cooperative / Consortium Buying
• Joint Venture
• Standard Sourcing Processes
• Request for Information (RFI)
• Request for Quotation (RFQ)
• Request for Proposal (RFP)
• Bidders Conference
• Syndicate Activity -- The class will engage in a team building activity to express effffective communications skills within an organization

 

 

DAY 2

 

 

External and internal circumstances frequently change, relationships evolve and contracts can become out-dated as the benefits and cost sharing between parties move out of balance. This is true particularly in supply chain contracting, where the dynamic nature of supply chain operations and the subsequent need for contracts to evolve over time and as circumstance change, we will endeavour to understand what constitutes a contract.

 

During this class we will discuss the most commonly used contracts and when and why they are used. We will also evaluate the Pros and Cons of each contract and review examples of when the contracting strategy has worked well and when it was not as successful. We will discuss how firms evolve from less complete to more complete forms of contractual arrangement and from more formal to more informal forms of effective governance. Finally we will develop contracting strategies to help build an effective supply chain organization.

• Contracts
• What constitutes a contract
• Drafting and negotiating contracts
• Types of contract
• Fixed-Price Contract
• Firm-Fixed-Price (FFP) Contract
• Firm-Fixed-Price (FFP), Level-Of-Effort Term Contract
• Firm-Fixed-Price (FFP) Materials Reimbursement Type Contract
• Fixed-Price Contract With Economic Price Adjustment
• Fixed-Price Contract
• Fixed-Price Incentive Contract
• Fixed-Price Redetermination
• Cost Reimbursement Contract
• Cost-Plus-A-Fixed-Fee (CPFF) Contract
• Purchase Order (PO)
• Contract Strategies to build an effffective supply chain organization
• Case Study -- The class will evaluate a case study: “The Price of Globalization” where they will evaluate an oil & gas company making decisions on the work standards and production in a global economy.

 

 

DAY 3

 

 

Strategic sourcing is a supply management tool that delivers significant cost reductions and other benefits. More specifically, it's a periodic event that includes the identification and selection of initial commercial arrangements with a selected supplier that either creates or resets a relationship. An organization creating supply advantage sorts through its suppliers and determines how their role and their relationship should change. We take a look at which relationships should be transactional, collaborative, or strategic; which relationships to drop and which to nurture. The result of this strategic sourcing process is a select few supply-advantage
alliances in which the members become partners in innovation, leading to marketplace advantage. We also look at what technology is being used to manage these relationships and which ones are most important to know and have. Finally we take a look at some strategies to help penetrate the global market and increase sales of your goods and services.

• Key Factors in Strategic Sourcing
• Degrees of Competition
• International Vs. Domestic
• Large Vs. Small supplier
• Manufacture Vs. Distributer
• National Vs. Local
• Total Cost of Ownership (TCO)
• Risk Mitigation
• Identifying the sources of Risk
• Estimating the probability of Occurrence
• Develop Risk Management strategies
• Logistics Management
• Incoterms (International Commercial Terms)
• Successful Cost Models
• Optimizing Use of Technology (E-Commerce) in Procurement
• ERP Systems (SAP, People Soft…)
• Ariba Sourcing™ Solution
• P2P (Process to Pay)
• Analyzing New Business Trends in Oil & Gas Industry
• Market Penetration Strategies
• Case Study -- The class will evaluate a case study on: “The Supply Chain Factor” where they will evaluate a company and its spending. Then categorize the vendors, select an ERP system, and developed a contracting strategy for each sector.

 

 

 

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