Oil & Gas Procurement & Supply Chain Management

Oil and gas firms operate in dynamic and complicated environments, with ongoing supply and demand concerns. Pandemics such as COVID-19 may wreak havoc on the steady supply of products and services along the oil and gas value chain. As a result, establishing comprehensive procurement and supply chain policies will assist Oil & Gas organizations in mitigating the effect of such catastrophes. It will also hasten the process of simplifying, enhancing efficiency, sustainability, and attaining corporate value. Procurement and supply chain strategies that are well-planned can lower operational costs while boosting quality and productivity.

This module introduces the core elements of strategic procurement and the supply management that are required to successfully execute efficient procedures and methodologies. It will assist participants in developing the mission, vision, and understanding needed to plan and carry out procurement and supply strategies. Participants also learn crucial cost-cutting measures, as well as how to optimize time and the transportation of goods and commodities.

Training Objectives

• Enhanced E&P procurement professionals’ core competencies
• Business drivers and interface issues to be supported by procurement
• The role of industry economics in dictating procurement good practices in cost management
• Industry global compliance needs and how procurement can add value
• How the industry is modeled in the E&P (upstream), midstream, and downstream value chains
• Characteristics of supply markets to oil and gas and the emphasis on market intelligence practices and managing supply risks
• What constitutes effective procurement/supply chain metrics for performance improvement
• Understand how to anticipate and mitigate procurement contract risks

Who Should Attend

This training course is designed for a wide range of professionals include:

• Purchasing and contract management professionals
• Project, Engineering, Operational, and Maintenance, personnel who are involved in the planning, and execution of purchases and contracts
• Senior Supply Chain Managers and Executives are looking at thought leadership of their own supply chain.
• Those wanting to create action within the supply chain to increase value and reduce cost

Course Outline

Module 1 - Defining Strategic Procurement in the Oil and Gas Industry

• What is World Class Procurement and Supply Management?
• Industry overview for procurement including host country and strategic relationships
• The elements of procurement management in Oil & Gas industry.
• Procurement management: the golden line in Oil & Gas industry.
• Oil and Gas Value Chain Management
• Procurement’s role in oil and gas value chain management – upstream, midstream, and downstream
• Economics of oil and gas that drive procurement value creation
• Industry market intelligence practices in procurement
• Trends in global sourcing and local content requirements

Module 2 - Continuous Improvement Strategies & Cost Optimisation

• Creating industry category management (sector) strategies
• Key business drivers and interface issues between projects (CAPEX) and operations (OPEX)
• Driving Down Prices Through Cost/Price Analysis
• Determining & Tracking Cost Drivers
• Cost Containment
• Supplier Collaboration Technologies
• Improving the Purchasing of Maintenance, Repair, Operating (MRO)
• Category Management Strategies
• Global Procurement Contract Risks

Module 3 - Supplier Collaboration and Relationship Management

• Industry regulatory and contractor safety compliance issues
• 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
• Oil and gas law and global contracting risks

Module 4 - Procurement Annual Materials Operational Planning

• Setting Annual Procurement Objectives
• Industry spend analysis characteristics and strategies
• Conducting Procurement Operations Related Situation Analyses
• Materials Classification Methods for Planning and Control Purpose
• Crafting Procurement Annual Plan & Programs
• Preparing Procurement Annual Budgets
• Case study

Module 5 - Strategic Contract Negotiations

• Understanding Key Components of a Commercial Contract
• Preparing for a Win-Win Negotiation
• Dealing with Difficult Suppliers
• The Importance of Collaborative, Competitive and Dynamic Negotiations
• Know When and How to Renegotiate a Contract
• Key procurement and supplier performance metrics