Procurement and Supply Chain Management for the Oil and Gas Industry

Course Length: 5 Days 

Course Dates: TBC 

Course Description:

The proper procurement of goods and services is essential for successfully delivering oil and gas projects. The procurement of goods and services also constitutes a significant portion of project spend. Delivering projects on schedule, at competitive rates, and with the best available input (people, goods, materials and technology) requires planning, minimizing and reducing waste and inefficiency along the supply chain, mitigating supply chain risks, and adopting appropriate contracting processes.

The Supply Chain Management and Procurement practices must operate at the upper quartile of the supply chain grid to deliver the best procurement outcome and ensure that projects avoid delays and cost overrun. It is also important to know the tools to deploy to get the most competitive deal from the marketplace, to cut off wastages and inefficiency along the supply chain, and to effectively negotiate with and manage suppliers to get the best from them. All of the above are important if the project is to be delivered on time, with the best materials, at the least possible cost and with regard to the safety of operations. Therefore understanding best practices in oil and gas upstream procurement and supply chain management is essential to the successful delivery of projects, especially if oil prices are low – if you cannot control the price of oil, at least you can control your third-party procurement and supply chain spend to ensure that ongoing projects are not ruined by severe cost overrun.

This course will expose participants to a comprehensive treatment of issues associated with upstream Midstream and Downstream procurement and supply chain management, showing how these issues can be managed for successful project delivery from demand identification to fulfillment; from supplier relationship management to project closeout.

Who Should attend:

This exciting and innovative course is suitable for those in the organisation, and not just in the supply chain, who have a responsibility to make improvements and save costs across the functions

• Supply chain professionals
• Procurement Professionals
• Supply Chain Professionals
• Tender or Bidding Managers
• Contract Administrators
• Contracting Unit Supervisors
• Project Engineers and Project Managers
• Sourcing, procurement, and supplier management professionals
• Production and manufacturing professionals
• All of those who need an understanding of supply chain concepts that can deliver lasting value for their business
• All of those needing an understanding of the relationships between risk, cost and service in supply chains.

 What You Will Learn:

• Apply a thorough understanding of supply chain activities
• Managing and optimizing your inventory to deliver financial results
• Identity, analyze and evaluate supply chain risk
• Use risk management tools and techniques
• Make supply chain organizational improvements

By the end of this training course, participants will be able to:

• Analyze the effectiveness of your firm’s supply chain practices
• Create an inventory strategy that speeds cash flow
• Evaluate and work with suppliers to deliver tangible business results
• Use analytical tools to identify supply chain risk
• Make cost and service improvements.

Course Outline

DAY 1: Defining Strategic Procurement in the Oil and Gas Industry

• What is World Class Procurement and Supply Management?
• Oil and Gas Value Chain Management
• Category Management Strategies
• E & P Total Cost of Ownership and Asset Management
• Global Procurement Contract Risks

 DAY 2: Integrated Supply Chain Strategy

• The Importance of a Dynamic and Collaborative Supply Chain
• Supply Chain Modes in the Oil and Gas Industry
• Demand vs. Supply management
• Understanding Transport, Logistics and Warehousing
• Supply Chain Integration

 DAY 3: Supplier Collaboration and Relationship Management

• The Importance of Strategic Supplier Relationships
• Supplier Collaboration Best Practices
• Creating and Maintaining Dynamic and Meaningful SLAs
• Supplier Relationships – The Total Management Process
• How to get Best and Sustained Value from Suppliers and Contractors